Connecticut Cannabis Company Agrees to $416,000 State Settlement

Connecticut officials said they and several state-licensed cannabis entities have reached a $416,000 settlement to resolve allegations of antitrust violations. Three adult-use cannabis licensees in Connecticut operating under the Crisp Cannabis brand, the company looking to acquire the three businesses, Mohave CT LLC, and the principals of each entity have agreed to a $416,000 settlement with state officials over alleged antitrust and other violations.

The allegations against Mohave and the three Crisp Cannabis licensees, located in Bridgeport, East Hartford, and Cromwell, claimed that the businesses prematurely transferred operational control and beneficial ownership to the would-be purchaser more than 100 days before informing officials of the change, the Office of Attorney General William Tong announced on Monday.

Tong said the enforcement action is aimed at preserving a healthy cannabis market and preventing “market concentration,” and is the first of its kind ordered by the state.

“Our goal is not only to hold companies accountable, but to ensure that all participants understand the rules designed to keep Connecticut’s cannabis industry fair, transparent, and competitive for consumers and lawful operators alike. We will continue to vigorously enforce these requirements, along with the state’s antitrust and unfair competition laws, to safeguard fair competition and protect the integrity of this growing industry.” — Tong, in a statement

The respondents agreed to jointly pay the $416,000 civil penalty, with $104,000 due within 30 days. If the respondents maintain full compliance with the agreement for three years, which includes implementing a comprehensive antitrust compliance program, the remaining $312,000 payment will be deferred.