The legal cannabis cultivator Jerzey Grown is suing the large Multi-State (MSO) Bloc of Somerset, the Dispensary of Union, and Oakland Manager LLC over payment of goods.
Table of Contents
Jerzey Grown Payment Lawsuit Against Bloc, Others
They filed a lawsuit over not getting paid with Bloc of Somerset in Franklin Township in Somerset County, the Dispensary of Union in Union Township, and Oakland Manager LLC of Illinois which is alleged by the defendant to be running them as a type of franchise chain.
The case is in the Superior Court of New Jersey.
The suit says the defendant placed an order for $2,081.76 worth of goods in January 2026, and it was delivered the same month.
Oakland Manager failed to pay after it was due February 28th.
According to the lawsuit, “Defendants admitted the debt but refused payment citing historical liabilities.”
In addition, “Oakland Manager participated in financial decision-making including non-payment and indicated no intention to pay the outstanding debt.”
“Defendants intentionally refused to pay despite repeated requests by Plaintiff, causing Plaintiff damages, including the necessity to retain counsel to initiate the complaint.”
Dispensary of Union and Bloc of Somerset Case Issues
The suit said Bloc took control of the Dispensary of Union. It’s part a small chain run by a former Real Housewives of New Jersey star Frank Catania. They were among the prominent supporters of the now-defunct 4/20 Expo, which held a Cup in 2024.
Jerzey Grown is also unhappy with their management structure since the lawsuit says “Defendants exercised control and should be jointly liable. Defendants failed to maintain proper corporate structure, including neglecting to hold meetings, keep record or follow corporate governance. The Defendants grossly failed to maintain enough funds to meet routine and expected business obligations. Bloc Dispensary and Oakland Manager dominate and control the Dispensaries of Union, sharing directors, officers and employees. Defendants used this control to commit fraud and injustice. Namely selectively avoiding payment of vendor obligations, including Plaintiff’s invoice, while continuing business operations.”
They also don’t believe they were honest or ethical since it says, “Defendants misrepresented intent to pay prior to Plaintiff providing the goods requested by Defendants. Defendants knew this statement was false, had no intention to pay or acted with a reckless disregard for the truth. Defendants made this false statement to induce Plaintiff to enter into the contract. Plaintiff reasonably relied on the false statement when providing the good and suffered measurable financial damages due to this reliance.”
So, Jerzey Grown wants its money. That should include “any additional amount to be determined at trial” plus “Prejudgment and post-judgement interest… an award of punitive damages… an award of costs that Plaintiff has incurred in this action, as well as Plaintiff’s reasonable attorneys’ fees to the fullest extent permitted by contract and law.”
Notably, Oakland Manager is also being sued by Bloc’s holding company in Justice Brand Holdings LLC v OAKLAND MANAGER LLC.
They seem to be run by a consultant.
NJ Cannabis Payment Issues Likely Widespread
Some people in the legal cannabis industry are not getting paid on time. It is a problem for some that a lawsuit has been filed.
Many tell Heady NJ that delayed payments are a widespread problem in the legal New Jersey cannabis industry.
It is likely a sign that a great number of legal dispensaries in the Garden State are not doing well.
We hear it takes 30 days on average, at least, to be paid. Some more prosperous dispensaries are able to pay Cash On Delivery (COD) and might receive a better price.
A lot of companies are not hitting their projections and quotas.
