New York Cannabis Dispensaries Win Big: Supreme Court Halts OCM Relocation Order for 150+ Stores

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In a recent press release, the Supreme Court of New York announced that they have granted “a preliminary injunction that protects more than 150 licensed dispensaries from forced relocation or closure while the case proceeds against the state's Office of Cannabis Management (OCM),” (1). With the injunction, it highlights that the plaintiff’s case was “issued without prejudice” and also that it can be renewed after six months (1).

The preliminary injunction order was signed by Judge Savona, AJSC, and mandates the OCM to roll back their established method of how they calculate distances between schools and dispensaries that was documented in their March 11, 2024 “Guidance for Adult-Use Retail Dispensaries,” (1). The Supreme Court of New York’s injunction will hold into effect until February 15, 2026. During this period, new applications that are submitted by applicants, existing licensees, provisional licensees, and other applicants, as well as license renewal applications that expire before or on that date, will be covered.

"This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York," said Jorge Luis Vasquez Jr., attorney for the petitioners (1). "The OCM's directives would have forced businesses that followed every rule to suddenly uproot or close their doors, jeopardizing investments, leases, and community trust. By requiring the OCM to honor its own prior guidance, the Court has ensured stability while the broader issues are litigated. Licensed operators deserve regulatory clarity, and we will continue to pursue a resolution that protects equity licensees and delivers on the State's promise of a fair and sustainable cannabis market."

With the injunction from the Supreme Court of New York, tax-paying businesses will be “shielded from directives that would have otherwise forced them to relocate or close, despite their full compliance with all regulations,” (1). The press release additionally mentioned that (1), “When the OCM announced its reinterpretation of community-vetted policies regarding proximity, the industry was stunned to see licensed operators' livelihoods threatened. Nearly 90% of the affected dispensaries are owned by Conditional Adult-Use Retail Dispensary (CAURD) justice-involved individuals, many of whom are Black and Latino.”

"The OCM's recent declaration placed retailers in untenable positions, jeopardizing their access to banking, investment, and lease agreements while pushing compliant businesses into noncompliance through no fault of their own," said Matthew Bernardo, President of Housing Works, Inc. (1). "Disrupting operations at this scale not only harms law-abiding businesses but also drives consumers back to the illicit market, where untested products put public health at risk."

In the court case, petitioners included Housing Works Cannabis Co, Conbud, The Cannabis Place, Rezidue, Summit Canna, Hush, High Fade, Elise Pelka LLC, Common Courtesy Dispensary LLC, Toastree LLC, Monarch NYC LLC, and Luxe Leaf Boutique LLC (1). Dispensaries that were affected via the reinterpretation of proximity, filed a lawsuit collectively on August 15, 2025, against the OCM (1).

"This injunction presents a unique opportunity for Governor Hochul to lead the legislative solution and resolve this matter in an equitable manner that will save thousands of legal cannabis industry jobs throughout the state, while ensuring access for tested and regulated cannabis products for consumers," said Osbert Orduna CEO of The Cannabis Place dispensary (1).

In the press release (1), Housing Works Cannabis Co and the other petitioners explained that they “remain committed to working toward a fair, workable solution that protects every compliant, tax-paying license holder in New York.”

References

1. New York court grants preliminary injunction blocking OCM directives that threatened Housing Works Cannabis Co and over 150 licensed cannabis businesses https://www.prnewswire.com/news-releases/new-york-court-grants-preliminary-injunction-blocking-ocm-directives-that-threatened-housing-works-cannabis-co-and-over-150-licensed-cannabis-businesses-302567816.html (accessed Sep 26, 2025).