Three Louisville-area business owners have filed suit against the state of Kentucky, claiming the process for awarding medical marijuana business licenses was opaque and potentially unlawful. The plaintiffs, represented by attorney Greg Troutman, argue that the state’s use of a lottery—conducted by the Kentucky Lottery in April—was never authorized by lawmakers and lacked proper oversight.

The controversy follows revelations that nearly 90% of license winners were out-of-state entities, with one Arkansas-based company linked to multiple licenses spanning cultivation, processing, and dispensaries. Some of these licenses are reportedly being offered for sale at prices reaching $10 million.

Local hemp farmers, including Michael Adair of Kentucky Farmed, have voiced frustration, saying they were led to believe they’d be prioritized in the licensing process. In response to mounting complaints, Kentucky Auditor Allison Ball has launched an investigation into the licensing system.

Read the full story at WDRB Media.