Rejected applicants sue over Minnesota marijuana social equity

Two women are suing Minnesota’s cannabis regulator after being denied an opportunity to participate in the upcoming lottery for adult-use marijuana social equity business licenses.

Cristina Aranguiz and Jodi Connolly allege in a lawsuit they filed Thursday allege that Minnesota’s Office of Cannabis Management (OCM) made an “arbitrary and capricious decision” in denying their applications to participate in the lottery and offered no explanation, the Minnesota Reformer reported.

Earlier this week, the OCM announced that roughly two-thirds of the 1,817 social equity license applicants had been disqualified because they failed to complete the application process, turned in multiple applications or disguised the true investors in their companies.

The plaintiffs’ complaint – which also names the OCM’s interim director, Charlene Briner – alleges the agency granted other applicants “secret reconsideration” and a chance to adjust their license applications.

Aranguiz and Connolly are asking the Ramsey County District Court to halt the social equity lottery and allow them to participate.

It was believed the lottery would be held the week of Dec. 2, but the OCM announced Friday that the lottery would be conducted Nov. 26.

According to the Minnesota Reformer, state law doesn’t allow for appeals of the OCM’s denials.

But Aranguiz and Connolly allege in their suit that:

• The agency has “offered a right to appeal to some applicants.”
• They are aware of at least one applicant who reached out directly to Briner.