Lawsuit filed over dispensary applicants not disclosing connection to each other

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LITTLE ROCK, Ark.- A medical marijuana dispensary applicant has filed a lawsuit asking the Alcohol Beverage Control board to investigate three dispensary applicants who may not have been entirely truthful on their applications.  

It started as a complaint filed with the ABC about the allegations but the plaintiff, Green Remedies Group LLC, ultimately filed a lawsuit.  

According to the plaintiff’s attorney, Quentin May, it was brought to the attention of the ABC before the dispensary licenses were distributed. 

The lawsuit alleges that three dispensary applicants, THC RX, Inc. and its principal Todd Sears, Doctor’s Orders RX, Inc. and its principal Donald L. Sears, and Pain Free RX, Inc and its principal Mary Sears, who were all awarded licenses in different zones failed to disclose their connection with one another. 

May says his client discovered the three applicants are family members and also affiliated with each other with other businesses in the state of Arkansas, but they did not disclose that on their applications.

In the application, there is a section that asks if the applicant is “in any way affiliated with any other applicant for dispensary licensing”.  

The plaintiff’s attorney says each of the three applications contains false statements made under oath and it appears they are actively conspiring to create a family monopoly owning dispensaries in three different zones in Arkansas. 

May says he was initially told the ABC was looking into the complaint, but about a week later, right before the licenses were issued, ABC director of enforcement recused himself from the investigation because of a conflict of interest.  

The lawsuit asks the ABC to stop delaying, investigate the claims and if justified penalize accordingly.  

“There’s nothing saying they would necessarily have been disqualified, but the lying under oath to the commission, that is an offense that the application and the rules both say you can be disqualified for that,” says May. 

The penalty could be anywhere from a $5000 fine to disqualification of the applications. 

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