Lawsuits Challenge Good Day Farm Ownership of Missouri Dispensaries
Two lawsuits filed in Missouri allege that Good Day Farm controls more dispensary licenses than state law allows. Plaintiffs claim the company used multiple LLCs to exceed ownership limits set after recreational marijuana legalization.
ReasonTwo lawsuits filed weeks apart accuse Arkansas-based Good Day Farm of controlling more Missouri marijuana dispensaries than state law permits. The suits were filed in April by Local Cannabis and VIBE and in May by Missouri resident Damon Frost Jr. Local Cannabis and VIBE allege that Good Day Farm operates 61 of the state's 229 dispensaries through 48 LLCs and its employees.
They also claim the company controls upwards of 40 percent of wholesale cannabis purchases in Missouri. Both plaintiffs seek an injunction to void related agreements and monetary damages including restitution.
Missouri voters approved recreational marijuana in 2022. The measure set a 10 percent ownership cap on licenses for dispensaries, cultivation, and manufacturing. An earlier 2018 constitutional provision for medical marijuana had used a stricter "substantially common control" standard.
Good Day Farm established separate LLCs for each stage of its supply chain and filed them with the Missouri secretary of state. Documents show Alex Gray holds 19 dispensary licenses under the Good Day Farm brand and 14 under a vertical called CODES.
Angela Irby registered the CODES CANNABIS name and organized two other LLCs that control nine additional licenses.
Cox, communications director at the Missouri Department of Health and Senior Services, said the Division of Cannabis Regulation reviewed each license application in question. The agency has no upcoming legal action planned against the company. Good Day Farm, Irby, Gray, and attorneys for the plaintiffs did not respond to requests for comment.
5 billion in cumulative marijuana sales in 2025 and $506 million so far in 2026.
Key Facts
Story Timeline
3 events- April 2026
Local Cannabis and VIBE filed suit alleging Good Day Farm used LLCs to exceed ownership limits.
1 sourceReason - May 2026
Damon Frost Jr. filed a second lawsuit making similar allegations against Good Day Farm.
1 sourceReason - 2022
Missouri voters approved recreational marijuana with a 10 percent ownership cap on licenses.
1 sourceReason
Potential Impact
- 01
A court ruling could require Good Day Farm to divest some Missouri dispensary licenses.
- 02
State regulators could revise how they interpret ownership limits for LLC structures.
Transparency Panel
Related Stories
BBC NewsTrump Meets Advisers to Decide on Iran Ceasefire Extension
President Trump said he is holding a Situation Room meeting to make a final decision on a possible deal with Iran. The proposed agreement would extend the ceasefire by 60 days and reopen the Strait of Hormuz.
Trump to Decide on Iran Deal in Situation Room Meeting
President Trump said Friday he is heading into the Situation Room to make a final determination on a potential agreement with Iran. The proposed deal would reopen the Strait of Hormuz without tolls and require destruction of Iran's highly-enriched uranium.
realitytea.comTrump Says U.S. Will Lift Iran Naval Blockade After Nuclear and Hormuz Pledges
President Trump stated the U.S. will end its naval blockade of Iran once Tehran commits to forgoing nuclear weapons and opens the Strait of Hormuz to unrestricted shipping. The announcement came via Truth Social and a live statement.