New York Court Shields Licensed Cannabis Businesses with Preliminary Injunction Against OCM Directives

New York Court Grants Preliminary Injunction for Cannabis Retailers



In a significant legal development, the Supreme Court of New York has issued a preliminary injunction that secures the future of more than 150 licensed cannabis dispensaries across the state. This ruling prevents the Office of Cannabis Management (OCM) from enforcing directives that would have forced compliant businesses to relocate or shut down while the lawsuit against the OCM remains ongoing. The court's decision exemplifies the strength of the plaintiffs’ claims and allows for the possibility of renewing the injunction after a six-month period.

The order was signed by Judge Savona and mandates that the OCM revert to its previous method of measuring distances between dispensaries and educational institutions, as outlined in its earlier guidance issued on March 11, 2024. This means that, at least until February 15, 2026, both existing dispensaries and new applicants will be protected from being uprooted by the OCM's controversial proximity reinterpretation.

Attorney Jorge Luis Vasquez Jr., representing the petitioners, emphasized the significance of this injunction. He stated, “This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York. 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 compelling the OCM to adhere to its own guidance from earlier, the court seeks to establish a stable environment while the broader legal issues are deliberated.

The licensed dispensaries involved in this situation have invested considerable time and resources, and the court's order ensures they are shielded from regulatory changes that could disrupt their operations. The announcement by the OCM regarding a reinterpretation of community-certified policies regarding store locations took the industry by surprise, threatening the viability of many lawful operators. Notably, nearly 90% of the affected dispensaries are owned by Conditional Adult-Use Retail Dispensary (CAURD) license holders, many of whom come from underrepresented communities, including Black and Latino individuals.

Matthew Bernardo, President of Housing Works, Inc., pointed out that the OCM directives put retailers in impossible positions, risking key financial agreements and banking access. “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,” he remarked, emphasizing the negative ramifications of the OCM's actions.

The petitioners include notable dispensaries such as Housing Works Cannabis Co., Conbud, and The Cannabis Place, all of which filed a lawsuit against the OCM on August 15, 2025, challenging the new policies. Osbert Orduna, CEO of The Cannabis Place, stated, “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.”

About Housing Works Cannabis Co


Housing Works Cannabis Co, established in 2022, is recognized as New York's first licensed retailer and delivery service in the cannabis industry. As a notable entity entrenched in social equity initiatives, Housing Works commits its efforts towards addressing various social injustices, including housing inequality and healthcare disparities, particularly for individuals affected by HIV/AIDS, homelessness, and the criminal justice system. The profits from its cannabis sales contribute directly to Housing Works' broader mission. Currently, the company operates two dispensaries, including its flagship store and a newer location in NoMad, furthering its commitment to community empowerment and change.

As the now-infamous OCM directives face further scrutiny, Housing Works Cannabis Co, along with its partners, remains dedicated to advocating for fairness and transparency in the cannabis market in New York.

Topics Consumer Products & Retail)

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