LA Hit With New Suit Over Social Equity Pot Applications

By Sam Reisman (September 1, 2020, 10:46 PM EDT) -- When Los Angeles amended its laws as part of a settlement with entrepreneurs who lost out on the city's controversial cannabis licensing process for minority business owners, it created a host of new problems and inequities, according to a new suit filed in federal court.

A trio of companies that applied for retail cannabis licenses on Monday claimed that changes to the city's municipal code favored certain minority applicants over others and that one company was targeted by regulators for trying to sound the alarm about problems in the process.

The three companies — ARMLA One Inc., ARMLA Two Inc. and...

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