A group of Missouri cannabis wholesalers has filed a sweeping lawsuit in Jackson County Circuit Court, alleging that a network of dispensaries and affiliated companies coordinated to suppress competition and control prices in the state’s rapidly growing cannabis market.
The lawsuit, filed April 28 in Kansas City, names Good Day Farm and dozens of related entities and individuals as defendants, accusing them of forming an illegal “cartel” designed to dominate Missouri’s retail cannabis landscape and extract profits at the expense of independent operators.
Plaintiffs CPC of Missouri–Smithville, LLC and GF Saint Mary LLC, both licensed cannabis cultivators and manufacturers, brought the case on behalf of themselves and a proposed class of similarly situated wholesalers. They argue the alleged conduct threatens the structure of the market approved by Missouri voters when recreational marijuana was legalized in 2022.
At the center of the lawsuit is Good Day Farm, a multi-state cannabis operator headquartered in Arkansas. According to the petition, the company organized a network of dispensaries operating under multiple brand names, including Good Day Farm, Codes, Greenlight, Fresh Karma and 3Fifteen Primo, that plaintiffs allege function as a coordinated system rather than independent competitors.
The lawsuit claims these entities, while structured as separate businesses, operate under shared management and centralized decision-making authority. Plaintiffs allege that Good Day Farm and its affiliates effectively direct purchasing, pricing, and operational decisions across the network.
According to the filing, the group controls at least 61 dispensaries across Missouri, representing more than a quarter of the state’s total licensed locations and accounting for an even larger share of wholesale cannabis purchases.
The plaintiffs allege that the defendants used their combined market power to pressure independent wholesalers into accepting unfavorable terms.
Among the practices outlined in the lawsuit:
The petition describes the alleged system as a “buy-side monopoly,” or monopsony, in which a group of buyers works together to suppress prices paid to suppliers while maintaining higher margins at retail.
Plaintiffs argue that this conduct has reduced competition and limited access to the market for independent cannabis producers.
Missouri law places strict limits on how many cannabis licenses can be owned or controlled by a single entity, capping ownership at 10% of total dispensary licenses.
The lawsuit alleges that defendants circumvented those limits by creating a network of separate legal entities, described as “verticals”, that formally hold licenses but are managed by Good Day Farm or its affiliates.
Under this structure, outside investors were recruited to fund acquisitions of dispensaries, while management authority was centralized through agreements that gave Good Day Farm control over operations and decision-making, according to the filing.
The plaintiffs argue that this arrangement allowed the group to effectively control far more of the market than permitted under state law while avoiding regulatory scrutiny.
Missouri’s cannabis system requires cultivators and manufacturers to sell their products through licensed dispensaries, preventing direct sales to consumers.
Because of that structure, wholesalers rely on access to dispensary networks to reach customers. The lawsuit argues that the alleged coordination among dispensaries limits that access, leaving independent operators with few alternatives.
The petition states that Missouri has issued 224 dispensary licenses statewide, making control of retail access a key lever in the market.
Missouri’s adult-use cannabis market launched in early 2023 following voter approval of a constitutional amendment in 2022. Since then, the industry has grown rapidly, with annual retail sales reaching more than $1.5 billion.
The lawsuit frames the dispute as a test of whether that market will operate as a competitive system or consolidate under coordinated control.
The plaintiffs are seeking both damages and injunctive relief, asking the court to halt the alleged anticompetitive practices and restore competitive conditions in the market.
The case is also filed as a potential class action on behalf of cannabis wholesalers in Missouri who are not affiliated with the alleged network.
The case is likely to draw close attention from regulators, lawmakers, and industry stakeholders as it moves forward, particularly given the size of the companies involved and the broader implications for Missouri’s cannabis market structure.
Jake Kroesen serves as the Editor of the Missouri Times. He hails from Independence, Missouri and enjoys all things Jackson County. A graduate of UCM, he obtained his degree in Political Science.
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