Chicago Pot Cartel by Pritzker, Wrigley Families Alleged in Suit

(Bloomberg) -- The legal marijuana business in Illinois is being controlled by a state-protected “Chicago cartel” that includes companies linked to the wealthy Pritzker, Wrigley and Kovler families, according to a lawsuit filed by a group called True Social Equity in Cannabis.

Marijuana companies Akerna Corp., Green Thumb Industries Inc., Verano Holdings and Surterra Holdings Inc. have successfully monopolized the Illinois-branded marijuana market, from cultivation to manufacturing to retail dispensaries, the plaintiffs said in a complaint filed Monday in Chicago federal court. 

The companies collude to control prices, with a pound of branded marijuana in Illinois going for about $4,000, compared with $300 in a competitive market like California, according to the suit by True Social Equity in Cannabis, which consists of pot consumers, workers and entrepreneurs. 

The companies didn’t immediately respond to emails or phone calls seeking comment. Jordan Abudayyeh, a spokesperson for Illinois Governor J.B. Pritzker, didn’t immediately respond to an email and voicemail seeking comment.

Litigation over who gets access to the newly legalizing business of recreational cannabis have been on the rise, as states try to favor minorities and small business owners by setting aside some licenses for them, but big multi-state operators like Verano and Green Thumb have advantages of size and scale. Illinois’ licensing process has already been fraught with litigation over such social equity issues.

The case is True Social Equity in Cannabis v. Akerna Corp., 22-cv-02000, U.S. District Court, Northern District of Illinois (Chicago).

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