According to a plaintiff in the lawsuit, it is a court room settlement that has led to the Los Angels City Council deciding to double the number of social equity retail marijuana licenses.

Madison Shockley III told Marijuana Business Daily that L.A.’s permit increase from 100 to 200 for a licensing round that took place last fall was the direct result of a lawsuit filed by him and the Social Equity Owners and Workers Association.

Shockley said that the City Council agreed to increase the number of licenses as part of a settlement agreement under which the lawsuit will be dropped.

The L.A. Department of Cannabis Regulation declined to comment on the settlement.

The lawsuit has been scheduled for a July 9 hearing pertaining to a preliminary injunction against the city.

Shockley said that this plus a request for a temporary restraining order, forced the city’s hand.

Nobody wanted to delay the licensing longer than necessary, Shockley explained.
“Even if we won the injunction and won the lawsuit, the most we could win was basically a do-over on those first 100 licenses,” Shockley said.

“So we were looking at 100 licenses versus 200, and clearly 200 was for the greater good.”

A spokesperson for the L.A. city attorney’s office said Mayor Eric Garcetti is expected to sign a copy of the settlement as soon as this week.


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