Good Day Farm has responded to a class action lawsuit filed against it in the Circuit Court of Jackson County, Missouri, calling the allegations baseless and pledging to vigorously defend its compliance record.
"The claims in this lawsuit are baseless and without merit," a company spokesperson said. "Our company operates in full compliance with all applicable Missouri state laws and regulations, and we will vigorously defend that record. We will not allow aggressive legal tactics to distract us from what matters most: our mission to deliver uninterrupted service and exceptional products to the patients, customers and employees who rely on us."
The lawsuit, filed by CPC of Missouri-Smithville, LLC and GF Saint Mary LLC on behalf of independent wholesalers, alleges that Good Day Farm and a network of affiliated companies and investors have built what the complaint describes as a cartel that exercises effective control over at least 61 dispensaries in Missouri, nearly triple the 22 permitted under a Missouri Constitutional requirement that no more than 10% of dispensary licenses be under substantially common control, ownership, or management. With 224 dispensaries currently licensed statewide, the plaintiffs allege the GDF network controls more than one in four.
The complaint alleges the operation is concealed across five separate brand names, Good Day Farm, CODES, Greenlight, Fresh Karma, and 3Fifteen Primo, and that the network collectively accounts for upwards of 40% of wholesale cannabis purchased in the state. The plaintiffs allege the arrangement has been used to depress wholesale prices paid to independent cultivators and manufacturers by more than 20%, to favor the network's own cultivated products on dispensary shelves, and to pressure independent wholesalers into purchasing the network's finished products as a condition of accessing its retail distribution.
The complaint also alleges that Good Day Farm was aware of the potential legal exposure its structure created. The filing quotes from a document the company allegedly provided to potential investors stating that assurances cannot be made that the Missouri Department of Cannabis Regulation will not take issue with the number of marijuana dispensaries operated or supervised by the manager or its affiliates.
Bob Hoffman, one of the lawyers leading the litigation, said in a statement that the suit was filed to restore the fair, competitive marketplace that Missourians voted for when they approved recreational cannabis in 2022, and that wholesalers who have been financially harmed by the alleged practices may be entitled to significant damages.
For more information:
Good Day Farm 
www.gooddayfarm.com
