The Misouri Independent
A Kansas City marijuana consumer alleges the Arkansas company and its affiliates used a web of LLCs to limit competition and inflate prices
Missouri’s largest marijuana company is facing a second antitrust lawsuit in two weeks, this time from a Kansas City consumer who alleges Good Day Farm and more than 40 affiliated LLCs used a web of dispensary licenses to limit competition and inflate prices.
Damon Frost Jr., a general contractor in Kansas City, filed the class-action lawsuit in Jackson County Circuit Court earlier this month on behalf of Missouri residents who purchased recreational cannabis products from the defendants.
“Defendants’ illegal scheme has successfully limited choice and locked out third party brands,” the lawsuit states, “thereby decreasing competition and increasing costs for Missouri consumers.”
Frost and class members seek to dismantle the alleged operation and recover damages for consumers.
A statement provided to The Independent by Lisa Weser on behalf of Good Day Farm called the claims in the lawsuit “baseless and without merit. Our company operates in full compliance with all applicable Missouri state laws and regulations, and we will vigorously defend that record.”
Frost declined to comment about the lawsuit.
This is the second class-action lawsuit filed against Good Day Farm and dozens of affiliates.
The first lawsuit came two weeks ago and was led by two Missouri marijuana manufacturing companies who alleged that Good Day Farm and its affiliates are tied through ownership records, management structures and acquisition agreements to more than 60 of Missouri’s 224 dispensary licenses — more than a quarter of the market.
They’ve used that structure, the lawsuit alleges, to form an “illegal cartel,” coordinating pricing, product supply and retail operations across dispensaries that do not all operate under the Good Day Farm name.
“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,” said the company’s emailed statement.
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Good Day Farm faces second Missouri antitrust lawsuit in two weeks
