Splash Farms, Inc., et al. v. State of Oklahoma ex rel. Oklahoma Medical Marijuana Authority; et al.

CourtDistrict Court, N.D. Oklahoma
DecidedFebruary 26, 2026
Docket4:25-cv-00512
StatusUnknown

This text of Splash Farms, Inc., et al. v. State of Oklahoma ex rel. Oklahoma Medical Marijuana Authority; et al. (Splash Farms, Inc., et al. v. State of Oklahoma ex rel. Oklahoma Medical Marijuana Authority; et al.) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Splash Farms, Inc., et al. v. State of Oklahoma ex rel. Oklahoma Medical Marijuana Authority; et al., (N.D. Okla. 2026).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OKLAHOMA

SPLASH FARMS, INC., et al., ) ) Plaintiffs, ) ) Case No. 25-CV-512-CDL v. ) ) STATE OF OKLAHOMA ex rel. ) OKLAHOMA MEDICAL ) MARIJUANA AUTHORITY; et al., ) ) Defendants. )

OPINION AND ORDER

Before the Court is the Emergency Motion by Plaintiffs At Joy Growers and Their Owners for Temporary Restraining Order and Preliminary Injunction (the “Emergency Motion”). (Doc. 96).1 Responses were timely filed by Defendant Governor J. Kevin Stitt (Doc. 103) and by all other Defendants (Doc. 104).2 The Court held an evidentiary hearing on the Emergency Motion on February 17 and 18, 2026. The Moving Plaintiffs—At Joy Growers LLC (“At Joy”), Darin Atkinson,

1 By consent of the parties, the undersigned has the authority to grant or deny this Motion in accordance with 28 U.S.C. § 636(c) and Fed. R. Civ. P. 73. 2 The Response filed on behalf of Governor Stitt adopts the arguments advanced in the Response filed by all other Respondents. (Doc. 103 at 7). To the extent Governor Stitt’s Response also asserts that the Emergency Motion should be denied because it fails to state a claim as to Governor Stitt, that issue is squarely addressed in a separately filed motion to dismiss (Doc. 94), which has not been fully briefed and is not yet ripe for the Court’s determination. Accordingly, the Court will reserve its consideration of those arguments until they have been fully presented on the motion to dismiss. The injunction granted herein does not require or restrain action by the Governor or his Office in any event. Melissa Atkinson, Dan Joy, and Jane Joy—and the Defendants appeared through counsel and presented witness testimony, documentary evidence, and oral arguments on the Emergency Motion. (See Doc. 108–109). Six witnesses testified: Jessica McGuire, Ph.D.,

who oversees the registration division of the Oklahoma Bureau of Narcotics and Dangerous Drugs Control (“OBNDD”); Darryl Beebe, the Oklahoma State Fire Marshal’s Chief Agent of Plan Review Enforcement; Jonathan Darin Atkinson, one of At Joy’s owners; Jodi Francisco, a volunteer fire chief and a full-time firefighter for Quapaw Nation; Richard Rogers, who has been retained by medical marijuana businesses to obtain their certificates

of occupancy (“COO”); and Lieutenant Colonel Mitch Smith, who supervises three marijuana enforcement teams for OBNDD. Plaintiff’s Exhibits 1–21, and 23–27, and Defendant’s Exhibits 1–9, 13–19, and 21–26 were admitted. Following the evidentiary hearing, the Moving Plaintiffs filed Proposed Findings of Fact and Conclusions of Law (Doc. 112), and Defendants filed a supplemental brief in opposition to the Emergency

Motion (Doc. 111, 113). Upon consideration of the parties’ submissions, arguments, and the evidentiary record at this stage of the litigation, the Court finds that the Emergency Motion should be granted to the extent it seeks a preliminary injunction, limited to the continued operation of At Joy’s outdoor growing operation only, pursuant to its existing, state-issued license.

I. Background The distribution, dispensation, manufacture, and possession of medical marijuana became legal under Oklahoma law following the passage of a statewide ballot initiative in 2018. See generally United States v. Stacy, 156 F.4th 994, 1001 (10th Cir. 2025) (discussing development of Oklahoma’s medical-marijuana law and industry regulations). Medical marijuana businesses quickly emerged and proliferated to become a significant industry in Oklahoma. See Orig. Investments, LLC v. State of Okla., 542 F. Supp. 3d 1230,

1234 (W.D. Okla. 2021) (noting, nearly five years ago, evidence that the state had licensed more than 2,000 dispensaries alone, and that Oklahoma was “profiting from an $800 million medical marijuana market” at that time). Thousands of medical-marijuana manufacturing, processing, and distribution businesses have operated in the state since. The Moving Plaintiffs created At Joy, a medical marijuana growing and processing

business in Ottawa County, Oklahoma. At Joy has been operating since 2020 and is licensed, as required under Oklahoma law, through the Oklahoma Medical Marijuana Authority (“OMMA”). At Joy holds three active OMMA licenses, including (1) Commercial Indoor Grower License # GAAI-6IC9-YBBG; (2) Commercial Outdoor Grower License # GAAO-6IC9-YBBG, and (3) Commercial Processor License # PAAA-

QV7G-Q4QZ. (Pl. Ex. 27). Both grower licenses are currently valid, expiring July 28, 2026. Id. The Commercial Processor License expires August 14, 2026. Id. Thus, all of At Joy’s OMMA licenses remain active. Any licensed business seeking to handle any controlled substances in Oklahoma must also have an active registration issued by OBNDD. Under Title 63, § 303 of the

Oklahoma Statutes, OBNDD “shall register an applicant to . . . manufacture” a subject controlled substance, “unless the Director determines that the issuance of such registration is inconsistent with the public interest,” which the agency is to determine based on factors including public health and safety. OKLA. STAT. tit. 63 § 2-302(A). Despite holding valid and unexpired OMMA licenses, At Joy’s business has been effectively shut down, in its entirety, pursuant to a November 14, 2025 Final Order of the Director of the OBNDD revoking At Joy’s registration, which covers operations under all three OMMA licenses.

(Def. Ex. 2, “Final Order”). The OBNDD Final Order revoked the Moving Plaintiffs’ registration and prohibits them from possessing, manufacturing, distributing, dispensing, prescribing, administering, or using for scientific purposes any controlled dangerous substance within or into the State of Oklahoma, effective thirty days from the date of the Final Order.

The Final Order revoked At Joy’s OBNDD registration solely because At Joy failed to submit a COO for two buildings on its farm that were used for its indoor manufacturing and processing operations. Moving Plaintiffs do not dispute that COOs have not been issued for the buildings located on At Joy’s property. During the first few years of At Joy’s operation, OBNDD did not require proof of a COO for OMMA-licensed businesses to

obtain a registration from OBNDD. At Joy operated its outdoor grow for years without incident or apparent interference by OBNDD and OMMA. Moving Plaintiffs assert that they have diligently sought to comply with OBNDD requirements but have been hampered by delays that are no fault of their own. At Joy has passed an interim (50%) Fire Marshal inspection and anticipates that, within the next few months, it will receive final approval

of the required COOs to resume indoor operations. (Doc. 97 at 6; see Def. Exs. 23-25). It is undisputed that outdoor-only grow operations are not subject to the COO requirement. Moving Plaintiffs contend that OBNDD has violated the Constitution by revoking At Joy’s ability to continue its outdoor grow operation, under License # GAAO- 6IC9-YBBG, based solely on OBNDD’s cited reason that At Joy has not produced a COO for certain buildings, even though those buildings are not involved in At Joy’s outdoor grow operation. (Docs. 97 at 6; 97-4 at 2).

Moving Plaintiffs assert claims pursuant to 42 U.S.C. § 1983 and the Oklahoma Constitution for alleged violations of their rights. (Doc. 41 at 48–61). They filed the Emergency Motion on February 11, 2025, seeking a temporary restraining order (“TRO”) and preliminary injunction prohibiting OBNDD from enforcing the Final Order only as it affects the outdoor grow portion of At Joy’s business.

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Splash Farms, Inc., et al. v. State of Oklahoma ex rel. Oklahoma Medical Marijuana Authority; et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/splash-farms-inc-et-al-v-state-of-oklahoma-ex-rel-oklahoma-medical-oknd-2026.