Officials are currently working on ways to regulate the cannabis market. But they may risk overstepping their bounds. Read on to find out what happened when a medical marijuana company sues South Dakota Department of Health.

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Medical Marijuana Company Sues South Dakota Department of Health: What’s the Story?

The South Dakota medical marijuana company, 605 Cannabis has filed a lawsuit against the South Dakota Department of Health (DOH) alleging the improper issuance of violations, overreach, and attempts to enforce unnecessary rules. They are requesting damages of over $1 million.

The lawsuit the medical marijuana company sues South Dakota Department of Health

 is contained in a forty-nine-page document and dates to January of 2023 when the company facility was inspected while the business was partially closed due to a blizzard. 605 is claiming the inspection was not properly handled.

“On January 19, 2023, the region where the 605 facilities (manufacturing and cultivation) are located was covered in snow due to a blizzard and the 605 facilities were consequently not fully operational, not open during its normal business hours, and key staff members were not present,” reads an excerpt from the complaint.

The company states that the DOH inspected the facility despite the limited staff and closure violating a rule that states inspection must occur during business hours.

They allege that the DOH took samples of cannabis and products during their inspection and then issued 19 violations. 605 claims the company did not specify whether these violations were due to cultivation or manufacturing issues.

Nine Violations of the Medical Marijuana Company Sues South Dakota Department of Health Case

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605 medical marijuana company sues South Dakota Department of Health primarily due to nine serious violations stemming from the inspection which ultimately led to the organization suspending the company’s manufacturing and cultivation licenses.

Here are the nine violations along with the company arguments.

  1. Finding 1: The first finding of the medical marijuana company sues South Dakota Department of Health case claims the company failed to test its products before sending them to market- 605 says it tests all its products and offers proof of testing

Other Facts to Know About Medical Marijuana Company Sues South Dakota Department of Health

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Here are some other facts to be aware of in the medical marijuana company sues South Dakota Department of Health case.

605 says they attempted to negotiate a settlement with the DOH but have been unable to reach an agreement. They say the primary point of contention has to do with the alleged presence of Delta-8 and terpenes in the product.

They have accused the DOH of interpreting cannabis laws inaccurately, failing to follow applicable inspection laws, failing to uphold communication with the company, and failing to have a clear understanding of the cannabis industry, particularly concerning cannabis extraction processes.

They say the suspension of their license has led to a loss of $1,300,000 and claim their rights have been violated due to the DOH misapplying rulemaking procedures.

605 alleges the DOH failed to produce test results for the products they took during the inspection despite company requests.

They say the DOH’s actions have caused irreparable damages in terms of profit loss and reputation damage. They say they have had to lay off employees and are at risk of going out of business.

The company is seeking a declaratory ruling on its DOH complaint and an injunction to allow them to do business as the court case moves forward. They are also seeking monetary damages.

605 said they cooperated with the DOH throughout the process voluntarily recalling products and seeking guidance although they maintain that none of their goods pose a health risk.

The media has reached out to the DOH for comment but has yet to receive a response.

We can only wait and see how the medical marijuana company sues South Dakota Department of Health case will resolve.