What is the Chicago Cannabis Cartel? Federal lawsuit paints mafia-like picture of Chicagoland weed industry

A federal lawsuit in Illinois federal court is currently the main talking point among many in the region’s cannabis industry. The lawsuit was filed by a group called True Social Equity in Cannabis against four marijuana companies, which it calls the “Chicago cartel.” The said cartel is closely associated with three prominent families, namely the Pritzker, Wrigley and Kovler families. Read on as we dive into the details of this lawsuit and why it’s the talk of the cannabis industry right now. We’ll also talk about the group that filed the lawsuit and the reactions of the parties involved.

The US District Court for the Northern District of Illinois received a nine-page lawsuit last week against four cannabis industry companies. The companies include Chicago-based Green Thumb Industries, Chicago-based Verano Industries, Atlanta-based Surterra Holdings, and Denver-based Akerna. Akerna helps provide technology services to the cannabis industry, while the other three companies are established cannabis companies that work together. All companies are prominent companies with far-reaching influence in different regions of the country.

The core of the lawsuit filed against the companies focuses on federal antitrust laws that the companies are said to be violating. The lawsuit claims the company’s stock pricing information, which represents an overlap of management and boardship. The companies are also accused of offering monopoly prices for products in the cannabis market. These allegations are enormous when proven in court, which is why all eyes are on the Illinois federal court’s finding.

For those who don’t know, JB Pritzker is the former Governor of Illinois, Ben Kovler is the CEO of Green Thumb, and William Wrigley Jr. is a former CEO of Surterra Holdings, now known as Parallel. This lawsuit puts the three personalities and their respective families in the spotlight as leaders of this proposed cartel and its actions. Each personality is established with their respective families in different business areas. The Pritzker family owns the Hyatt Hotels, the Wrigleys own a gum company, and the Kovler family has numerous business interests.

Evidence from the lawsuit alleges that Akerna, as the technology arm of this cartel, provides others with information about supply, demand and price in the Chicago cannabis market. This information serves as the basis upon which the cartel monopolizes and controls the Illinois marijuana market. While not fully licensed as a cannabis company, the lawsuit believes Akerna is currently pursuing marijuana licenses in the market. This makes Akerna the core that holds the proposed cartel together and provides it with the intelligence needed to control the market. While these are the lawsuit’s projections, it remains to be proven how true they are.

Following the filing of the lawsuit and all the reactions that followed, Green Thumb, Verano and Parallel chose not to immediately comment on the matter. Akerna, on the other hand, has spoken out through his communications manager, Georgia Jablon. Georgia replied to MJBizDaily via email, explaining that the company is also filing a motion to dismiss the lawsuit immediately. He explains that the lawsuit document contains several inaccuracies. One of these inaccuracies is that Akerna is not a plant-touching operator, but a public company. The interpretation of this is that its shareholders and board of directors are all public records. Jablon claims this is just one of the numerous inaccuracies in the lawsuit that prompted the immediate dismissal.

The lack of reactions from the main players in this court case does not suggest much. Such large corporations are not known to respond quickly to public lawsuits such as these. This is because in most cases they are easily faced with multiple lawsuits from different places. However, the terms surrounding this particular lawsuit might require a bit of urgency on your part. The celebrity of the people close to the company is also a reason why this lawsuit has received public attention.

Many may not be familiar with this group, but it’s an organization dedicated to fighting marijuana monopolies. This current suit is the biggest recent move towards that goal and has garnered a lot of publicity for the group. The group works to address marijuana monopolies among consumers and entrepreneurs in cannabis ventures and their competitors. The significance of this move by the group is that it will help checkmate many players in the industry and ensure a level playing field for all. This is important in a growing industry like cannabis, which is already seeing rising sales in several regions.

The group’s goal through the lawsuit is to bar the defendants in court from all marijuana-related activity in the state of Illinois and the entire United States. This includes and is not limited to the marketing, sale, cultivation and distribution of the herb. This is certainly a major feat if the court agrees to the lawsuit after the trial. But there is still a long way to go before that is certain. Other groups and advocates are emerging in the industry, such as Trust Social Equity in Cannabis. The good side of this is that they help keep the entire industry on its toes.

Trust Social Equity in Cannabis is going all out with its current lawsuit against the Chicago cartel, and many are awaiting the outcome. While it may be too early to make any predictions about what will happen, the situation is getting more and more interesting every day. Comments from those affected are expected soon. However, if Akerna has his way, the lament could die before it even gets a chance to breathe.

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