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Key vendor in Missouri’s medical marijuana program hit with $28 million judgment | Cannabis Business Executive – Cannabis and Marijuana industry news

A company hired by the state to score applicants for medical marijuana licenses has lost a $28 million lawsuit brought by one of the jilted companies. In the latest legal fallout from Missouri’s rocky rollout of its medical marijuana program, Wise Health Solutions was sued by GMT Consulting, which had joined a rush of companies seeking…
The post Key vendor in Missouri’s medical marijuana program hit with $28 million judgment appeared first on Cannabis Business Executive – Cannabis and Marijuana industry news.

A company hired by the state to score applicants for medical marijuana licenses has lost a $28 million lawsuit brought by one of the jilted companies.

In the latest legal fallout from Missouri’s rocky rollout of its medical marijuana program, Wise Health Solutions was sued by GMT Consulting, which had joined a rush of companies seeking a license to sell, grow or distribute medical pot in 2019.

When it didn’t receive a license in 2020, GMT sued, saying Wise’s scoring method was flawed and “corrupt,” resulting in the company not being awarded a license by the Missouri Department of Health and Senior Services.

The case eventually went to an arbitrator, who found in favor of GMT, saying Wise “negligently performed its consulting duties for DHSS, which caused GMT Consulting, LLC to be wrongfully denied dispensary licenses.”

A Buchanan County judge signed off on the award in July.

Now, GMT is in court in Cole County seeking to force the $28 million to be paid out by Wise’s insurance company, Illinois-based Hiscox Insurance Co.

Gov. Mike Parson’s administration says the decision against Wise Health is not an indictment of the state’s scoring system. [Read more at St. Louis Post Dispatch]

The post Key vendor in Missouri’s medical marijuana program hit with $28 million judgment appeared first on Cannabis Business Executive – Cannabis and Marijuana industry news.

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