Fight over disputed Arkansas medical marijuana permit escalates

A long-running dispute over one of Arkansas’ medical marijuana cultivation permits is escalating after a second court found regulators improperly awarded one of the licenses.

At issue is the license awarded to Fort Smith, Arkansas-based River Valley Relief, one of eight cannabis cultivators licensed by the state.

On Dec. 30, a Pulaski County Circuit judge ruled that state regulators issued River Valley Relief and its principal, Bennett “Storm” Nolan, a permit despite the fact his application was “fatally flawed.”

It’s the second ruling against Nolan and River Valley following a 2022 decision that also found regulators acted improperly when they “unlawfully” awarded Nolan’s business a permit.

The original suit was filed by 2600 Holdings, which does business as Southern Roots Cultivation and unsuccessfully applied for a medical marijuana cultivation permit during the same licensing round as River Valley Relief.

Nolan plans to appeal the ruling from Circuit Judge Herb Wright, who oversaw the 2022 case and said state regulators must take “all steps necessary to remedy” the improperly awarded permit, according to the Arkansas Times.

In a statement to 5News, Scott Hardin, a spokesperson for the state Department of Finance and Administration, said it was “premature to speculate” what might result from the court ruling.

The state Medical Marijuana Commission is expected to discuss the court order and possible next steps at its Jan. 9 meeting, Hardin said.

In a statement to the Times, Abtin Mehdizeagan, an attorney for 2600 Holdings, said he expects regulators to “act swiftly in revoking the unconstitutional license and we will not hesitate to seek further relief from the Court if they fail to heed this lawful order.”