CT reaches $416K settlement over alleged cannabis merger violations
Crisp Cannabis and Mohave CT LLC settled with Connecticut for $416,000 due to premature operational control transfer during a merger.Summary
Connecticut’s Attorney General’s Office announced a $416,000 settlement with Crisp Cannabis, a cannabis business with locations in Bridgeport, East Hartford, and Cromwell, and Mohave CT LLC, the company seeking to acquire it. The settlement resolves allegations of “gun-jumping” – violating state laws by prematurely transferring operational control before submitting a required “notice of material change” to regulators under the Revised Uniform State Cannabis Act (RERACA).
The Attorney General’s office stated that evidence showed Mohave CT assumed decision-making authority over Crisp Cannabis’s operations, branding, and staffing for over 100 days before notifying regulators, effectively eliminating competitive independence. Attorney General William Tong emphasized this is the first enforcement action of its kind, highlighting the importance of compliance within the growing cannabis industry.
As part of the settlement, Crisp Cannabis must pay $104,000 within 30 days to have the remaining balance waived and must implement a comprehensive antitrust compliance program to prevent future violations of RERACA, the Connecticut Antitrust Act, and the Connecticut Unfair Trade Practices Act (CUTPA). The goal is to maintain a fair, transparent, and competitive cannabis market in Connecticut.
(Source：Ct Insider)