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New York Cannabis Officials Demanded Kickbacks, Lawsuit Claims

The surveillance company is seeking $300 million in damages.

A security firm has filed suit against New York state regulators, claiming that officials engaged in fraud and misrepresentation over a contract.

America Smart Cities’ $300 million claim was filed against the Dormitory Authority of the State of New York (DASNY), the New York State Liquor Authority Office of Cannabis Management, Dr. Emory Alexander, and Reuben McDaniel III.

The company said it was promised a surveillance contract for installing equipment at cannabis facilities and near university dormitories throughout the state.

However, McDaniel and Alexander expected ownership and compensation in return for awarding the contract.

When ASC did not provide the alleged kickbacks, its contract was terminated “abruptly and without notice.”

According to Green Market Report, it was originally filed in a New York state court but has since moved to a federal court.

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