Minnesota marijuana retailer sold illegal products, state suit claims

Minnesota’s cannabis regulatory agency has filed a lawsuit against a Twin Cities retailer for allegedly selling unlicensed marijuana products.

The complaint, filed by the Minnesota Office of Cannabis Management (OCM), claims Zaza Lake Street sold hundreds of unlicensed marijuana products containing well over the state legal limit of 0.3% THC, according to Eden Prairie- based TV station KMSP.

The products, which contained up to 23% THC, included flower, pre-rolls and vapes.

Minnesota has had a restrictive medical marijuana program since 2016, but the state’s adult-use market is expected to open in early 2025.

Until then, retailers are prohibited from selling marijuana products that contain more than 0.3% THC.

The one exception is adult-use sales on tribal lands in the state.

In the Zaza Lake Street case, the OCM is asking Hennepin County District Court for the right to destroy as much as $20,000 worth of products after inspections revealed the company was selling illegal cannabis products and then tried to conceal the unregulated products in a backpack carried out the backdoor, according to the MinnPost.

The stores listed in the lawsuit are owned by Darren Dado and located in Minneapolis and St. Paul, according to state records.

The legal challenge could jeopardize Zaza’s eligibility to secure an adult-use business license when they are issued, an OCM spokesperson told the MinnPost.