Leafly stock rises after NY court strikes down advertising ban for Cannabis
Leafly stock rises after NY court strikes down advertising ban for cannabis.
Leafly Holdings Inc. Inc.’s stock rallied Friday after a New York state judge struck down a marketing ban for cannabis companies in the Marijuana Regulation and Taxation Act that regulates the state’s pot industry.
New York Supreme Court Judge Kevin Bryant late Thursday issued an amended decision that sided with a case brought by Leafly LFLY, +3.79% after it was prevented from including an ad for a Buffalo-based cannabis dispensary on its website, according to reports.
Leafly stock rose 7.3% in morning trades.
Bryant’s initial decision on Wednesday struck down the bulk of the state’s act, but then he narrowed the move to focus on its marketing ban, according to reports.
“This court is…constrained to find that the regulations are an unconstitutional violation of petitioner’s free speech rights as set forth in the New York state constitution,” Bryant said in his initial decision.
Leafly filed the legal action to open up access to its website, which helps consumers shop for and compare cannabis products and find dispensaries.
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The state’s Office of Cannabis Management and Leafly did not reply to an email from MarketWatch.
The Leafly case marks the latest legal battle over New York state’s 2021 cannabis law.
Among them, a lawsuit last year delayed the rollout of state cannabis licenses for several months until it was settled in November.
Gov. Kathy Hochul recently ordered an overhaul of the Office of Cannabis Management.
Dispensary owners have complained that the advertising ban and other regulations have made it more difficult to compete with illicit cannabis stores.
