New lawsuit challenges lottery process for Kentucky medical marijuana licenses

LOUISVILLE, Ky. (WDRB) -- A new lawsuit is challenging Kentucky's medical marijuana license lottery.

Three Louisville area businesses are suing Sam Flynn, director of the state's Office of Medical Cannabis, and Attorney General Russell Coleman.

The lawsuit filed last month in Jefferson Circuit Court challenges how the lottery process to select cultivators, processors and dispensaries played out.

Earlier this year, a WDRB investigation into Kentucky's medical cannabis rollout exposed potential lottery loopholes. State records showed nearly 90% of the medical marijuana license lottery winners are from out of state. Business applications of the 74 winners show 66 of them have connections to out-of-state owners or board members. Only eight LLCs were solely connected to Kentuckians.

Gov. Andy Beshear has stood by the state's decision to award licenses via a lottery process, previously stating he believed any other option would have taken much longer and could have been tied up in the courts with lawsuits.

Medical marijuana became legal in the commonwealth Jan. 1. While thousands of Kentucky patients have already gotten their medical cards, they're still unable to purchase it — more than six months after its legalization.

The lawsuit comes amid Kentucky Auditor Allison Ball's investigation into the process to award licenses after her office received numerous complaints about how it was conducted.

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