Seven independent cannabis transport companies have filed a lawsuit against the Illinois Department of Agriculture, alleging discriminatory practices that disproportionately benefitted larger, majority white- and male-owned businesses. The plaintiffs, all majority-owned by women and minorities, argue that the department introduced “quickie” licence applications in 2021, allowing established cultivation centres to bypass rigorous compliance procedures. This expedited process gave larger companies a significant head start, as independent transporters faced lengthy delays in securing licences.

The lawsuit highlights how these actions left small businesses struggling to compete in Illinois’ cannabis sector. By the time minority- and women-owned transporters began operations, many larger firms had already established in-house transportation capabilities, removing the need for independent contractors. The lawsuit claims this “nail in the coffin” resulted in severe financial harm for the plaintiffs.

Attorney Alissa Jubelirer, representing the plaintiffs, called the department’s actions a “clear case of disparate impact discrimination under the Illinois Civil Rights Act,” stating these policies directly undermined equity-focused businesses. The plaintiffs are seeking damages for lost profits and legal fees.

Illinois’ aim to legalise recreational marijuana in 2020 included pledges to repair the harm caused by the war on drugs, particularly in Black and Brown communities. Special “social equity” licences were introduced to support minority entrepreneurs. However, a 2024 disparity study revealed systemic challenges, noting that transporters without other cannabis licences struggled to secure contracts. Currently, only 2 of 55 minority- and women-owned independent transporters remain operational in Illinois.

Amber Lengacher, CEO of Purple Circle, criticised the state’s regulatory approach, stating, “Illinois’ cannabis programme was supposed to be a model for diversity, but social equity licensees have faced insurmountable odds unnecessarily caused, exacerbated or ignored by state regulators.” This lawsuit puts renewed focus on whether Illinois is truly delivering on its promise of equity in the billion-dollar cannabis industry.

Source: Chicago Sun Times