Connecticut AG Settles Cannabis Antitrust Violations for $416,000

CT Attorney General Press Releases

Filed January 12th, 2026

Detected February 7th, 2026

Summary

Connecticut Attorney General William Tong announced a $416,000 settlement with three cannabis licensees and their acquiring company for alleged violations of cannabis and antitrust laws. The settlement resolves claims of 'gun jumping' and anticompetitive information exchange.

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What changed

Connecticut Attorney General William Tong has secured a $416,000 settlement with three "Crisp Cannabis" brand licensees and their acquiring entity, Mohave CT LLC, resolving allegations of violating the state's Responsible and Equitable Regulation of Adult-Use Cannabis Act (RERACA), the Connecticut Antitrust Act, and the Connecticut Unfair Trade Practices Act (CUTPA). The investigation found that the businesses engaged in "gun jumping" by prematurely transferring operational control and beneficial ownership before required notice to regulators, effectively eliminating competitive independence. Additionally, the respondents allegedly exchanged competitively sensitive business information, aligning commercial strategies and reducing competition.

This settlement, the first of its kind under the state's new cannabis framework, requires the respondents to pay a civil penalty of $416,000, with $104,000 due within 30 days and the remaining $312,000 deferred contingent on compliance. The action serves as a warning to all participants in Connecticut's growing cannabis industry regarding obligations related to competition, market concentration, and fair trade practices. Non-compliance with the settlement terms could lead to further enforcement actions.

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The Office of the Attorney General William Tong

Press Releases

01/12/2026

Attorney General Tong Announces $416,000 Settlement with Cannabis Operations for Violations of Connecticut's Cannabis and Antitrust Laws

(Hartford, CT) – Attorney General William Tong today announced a $416,000 settlement with three cannabis establishment licensees in Bridgeport, East Hartford and Cromwell operating under the “Crisp Cannabis” brand, along with the company seeking to acquire them, Mohave CT LLC, and the principals of all entities, resolving allegations that they violated Connecticut’s Responsible and Equitable Regulation of Adult-Use Cannabis Act (RERACA), the Connecticut Antitrust Act, and the Connecticut Unfair Trade Practices Act (CUTPA).

The Attorney General’s investigation found that the businesses and their principals engaged in conduct amounting to “gun jumping”—the premature transfer of operational control and beneficial ownership among multiple licensees—prior to filing the notice of material change required by RERACA. Evidence showed that the acquiring entity assumed decision-making authority and coordinated the operations, branding, and staffing of three separate cannabis establishments for more than 100 days before notifying regulators. This alleged coordination effectively eliminated the licensees’ competitive independence, consolidating them into a single enterprise before the Attorney General’s merger review could occur, in violation of RERACA’s notice and waiting-period requirements.

The investigation also identified additional alleged violations under Connecticut’s antitrust and competition laws. Per the agreement, the businesses and their principals allegedly exchanged competitively sensitive business information, including pricing and operational data, with the effect of aligning commercial strategies and reducing uncertainty among nominally independent competitors, in violation of the Connecticut Antitrust Act. Further, the coordinated conduct among multiple licensees operating under a de facto common enterprise was found to frustrate RERACA's clear public policy of maintaining a fair and competitive licensing system, constituting an unfair method of competition in violation of CUTPA.

“When the legislature created Connecticut’s adult-use cannabis market, it built in safeguards—like the 2021 notice of material change pre-merger notification statute—to protect competition and prevent market concentration before it starts,” said Attorney General Tong. “This is the first enforcement action of its kind under that framework, and it underscores both the growth of this industry and the seriousness of the obligations that come with it. Our goal is not only to hold companies accountable, but to ensure that all participants understand the rules designed to keep Connecticut’s cannabis industry fair, transparent, and competitive for consumers and lawful operators alike. We will continue to vigorously enforce these requirements, along with the state’s antitrust and unfair competition laws, to safeguard fair competition and protect the integrity of this growing industry.”

Under the settlement, the Respondents will jointly and severally pay a civil penalty of $416,000, including $104,000 due within 30 days and $312,000 deferred contingent upon full compliance with the agreement. The respondents also agreed to implement a comprehensive antitrust compliance program and to refrain from any future violations of RERACA, the Connecticut Antitrust Act, or CUTPA. The settlement remains in effect for three years, during which time the Attorney General’s Office will monitor compliance. The respondents cooperated fully with the investigation.

Assistant Attorney General Julián Quiñones and Deputy Associate Attorney General and Chief of the Antitrust Section Nicole Demers assisted in this matter.

Twitter: @AGWilliamTong Facebook: CT Attorney General