SCOOP: Operator sues Calif. regulator for $500M over ‘burner distros’

A California operator sued the California Department of Cannabis Control (DCC) for $500M alleging the agency has allowed "an unchecked illicit market to flourish through diversion schemes commonly known as "burner distributors."

Plaintiff vertically-integrated Kolaboration Ventures alleges, "The DCC has never implemented the automatic, criteria-based flagging system," required by law the suit alleges, while collecting license fees from compliant operators" such as Kolaboration which says it has paid more than $4M in license fees across 24 licenses.

The California suit, filed last week in Monterey County . . .