Alabama Cannabis Industry Association says that lawsuit is baseless and false

September 27, 2024 – Montgomery – the Director of the Alabama Cannabis Industry Association (ACIA), Chey Garrigan, says that allegations made against her and the association are baseless and false.

The lawsuit against the ACIA was first published in the Alabama Political Reporter (APR).

"I have been made aware of the story in the APR about an alleged lawsuit filed against the Alabama Cannabis Industry Association claiming fraud," Garrigan said in a statement. "I can publicly say these allegations are baseless and false."

Avail Professional Services accused Garrigan and her start-up, the Alabama Cannabis Industry Association, of engaging in fraud, misrepresentation, and breach of contract.

Avail Professional Services and its CEO, Joseph Dussold, filed their lawsuit on September 23. They have accused the ACIA and Garrigan of fraud, misrepresentation, and breach of contract.

They claim they spent $15,000 on a sponsorship of a July 2024 ACIA cannabis conference that was to have been held in Birmingham after the licenses for Alabama's startup medical cannabis industry were issued. Unfortunately for Garrigan and Dussold those licenses were never issued.

In June 2023 the Alabama Medical Cannabis Commission (AMCC) awarded the licenses based on scores issued by the University of South Alabama. Everyone who applied for a license but was not awarded one immediately filed suit. The AMCC suspended and later revoked all of the June awards. The commission awarded more licenses in August, but again due to squabbling applicants and pending litigation in Montgomery Circuit Court the Commission once against revoked the licenses. After mediation with the plaintiffs the AMCC awarded more licenses in December. Those licenses have since been bogged down in litigation. Even though the Legislature passed medical cannabis legislation in 2021, to date no one in the state with a legitimate medical need has been able to purchase any lawfully grown Alabama medical cannabis.

The ACIA is not in position to hold any conference until the state of Alabama has medical cannabis – and at this time nobody knows when that will be. The Alabama Legislature elected not to pass cannabis legislation increasing the number of licenses when it met in the 2024 regular session and the AMCC has no authority to increase the number of licenses issued as the original 2021 legislation strictly limits the number of growers, processors, dispensaries and integrators – can grow, process, and sell medical cannabis. Plaintiffs won't agree to settle their litigation if it means they don't get a cannabis license; thus this whole industry is tied up in the Alabama courts and the only one making any money off of medical cannabis in Alabama are the myriad of attorneys representing the various entities and the state.

The lawsuit was submitted to the Circuit Court of Montgomery County.

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