Lawsuit accuses California cannabis mega-grower Glass House Brands of being “one of the largest, if not the largest, black marketers of cannabis in the State of California, if not the country” could be both.
In a complaint filed June 6 in Los Angeles County Superior Court, 562 Discount Med, which does business as Catalyst, alleged that Glass House “knowingly is entering into illicit sales – both inside and outside California.”
Glass House does this, the suit alleges, by selling marijuana in the legal market as well as via a “network” of so-called “burner distros” – licensed distributors set up to be briefly used as conduits for legally grown cannabis to enter the illicit market.
Those distributors then send legally grown flower to illicit markets “as far away as New York and New Jersey,” where illegal marijuana sales are rampant and where many illicit shops do sell cannabis in packaging featuring California branding, the suit alleges.