Lawsuit accuses Jushi of deliberately and for illegal antitrust purposes, obstructing Troca Global client MJ's Market's entry into the cannabis market in the Merrimack Valley.
Worcester, MA – March 31, 2023 – Troca Global Advisors LLC, in collaboration with Tymann Davis & Duffy LLP, represents MJ's Market in a lawsuit filed against Jushi Holdings Inc. and its subsidiaries. The lawsuit, submitted on Friday in the Massachusetts federal court, accuses Jushi of deliberately and for illegal antitrust purposes, obstructing MJ's Market's entry into the cannabis market in the Merrimack Valley to maintain a local monopoly in the region.
MJ's Market alleges that Jushi, through its subsidiary Nature's Remedy, employed various baseless objections and petitions to delay or prevent the opening of MJ's new location in Tyngsboro. These actions, MJ's claims, were part of a strategic effort to stifle competition and preserve Jushi's dominant position in the market.
"Defendants' challenges have uniformly been devoid of substance, yet they have effectively served their illicit purpose of increasing market entry barriers, harming competition, frustrating our development efforts, and maintaining their monopoly," stated the complaint.
The legal battle began after Tyngsboro amended its zoning laws in 2018 to allow cannabis retailers under special permits. MJ's Market, Nature's Remedy, and Royalty Group emerged as finalists for the town's first permits. Nature's Remedy, acquired by Jushi in 2021, secured the necessary licenses and opened its store, while MJ's was later selected as the second approved retailer following Royalty Group's withdrawal.
In March 2021, MJ's Market obtained a host community agreement, marking the initial step towards opening their cannabis store. However, Nature's Remedy objected, citing baseless concerns over location proximity, potential impact on their sales, and traffic issues.
The complaint also revealed that during Nature's Remedy's objection period, private discussions for its acquisition by Jushi were ongoing, including illegal incentives to block MJ's project. The merger agreement contains a $15 million payout clause contingent on successfully blocking MJ's Market's store.
Despite the zoning board of appeals ruling in favor of MJ's, Jushi continued to cause delays by filing appeals and commissioning a questionable traffic study. MJ's claims these actions have resulted in $45 million in lost revenue and additional legal fees. The lawsuit alleges conspiracy to restrain trade, monopolization, and unfair competition, seeking at least $60 million in damages.
"From our perspective, MJ's is a small, locally owned participant in this market, facing a larger, Goliath-like opponent employing every tactic to keep out their competitor," said Michael J. Duffy, attorney for MJ's Market, Tymann Davis & Duffy LLP.
MJ's Market is represented by Michael J. Duffy of Tymann Davis & Duffy LLP and Eric Kfoury and Abhijit "Beej" Das of Troca Global Advisors LLC. The case is MJ's Market Inc. v. Jushi Holdings Inc. et al., case number 4:23-cv-40037, in the U.S. District Court for the District of Massachusetts.
For media inquiries, please contact:
Michael J. Duffy
Tymann Davis & Duffy LLP
Email: mduffy@tddlegal.com
Phone: +1 617-933-9490
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