It’s Been A While Since We Had A MJ Freeway Lawsuit…….
Pennsylvania, media outlet Grown In reports Pennsylvania seed-to-sale tracker embroiled in lawsuit with key diversity, tech support subcontractor A federal lawsuit between Pennsylvania’s controversial seed-to-sale tracking company and a subcontractor responsible for obtaining enough points so the tracking company could win the state contract has been grinding through courts as the tracker’s initial contract period is coming to a close. The case, which was filed in the Eastern District Court of Pennsylvania, has been in mediation since April, which could conclude at any time. Akerna-owned MJ Freeway LLC, which Pennsylvania regulators contracted to provide seed-to-sale tracking for all state cannabis vendors, has been embroiled in a lawsuit since May 2021 with minority-owned technology contractor TreCom Systems Group Inc over non-payment for services and the validity of the initial contract between the two companies. TreCom, a technology services vendor for multiple contracts with the State of Pennsylvania, was a key component of MJ Freeway’s 2016 seed-to-sale proposal to Pennsylvania regulators. As a qualified diverse subcontractor, TreCom was responsible for a significant portion of the points assigned to MJ Freeway in the proposal evaluation, according to state RFP scoring documents. TreCom’s amended complaint Trecom v MJ Freeway Complaint 5-26-21 MJ Freeway’s motion to dismiss. MJ Freeway Motion to dismiss 5-6-21 The seed-to-sale tracking contract won by MJ Freeway, for $10.3 million, made the company the required vendor for medical cannabis operators. As such, MJ Freeway is able to charge the state’s 193 cannabis dispensaries, processors, and cultivators additional fees for technical support for a service they are legally required to obtain. According to operators in the state, support fees range from $30,000 to $80,000 a year. MJ Freeway won Pennsylvania’s contract for seed-to-sale tracking through a Request For Proposals (RFP) scoring system that assigned 20% of 1,000 possible points to the…
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