SCOOP: Calif. regulator’s Metrc use “fails to comply” withlaw, judge rules

OG article by Alex Halperin

December 10, 2025

A California judge ruled that the Department of Cannabis Control's (DCC) usage of compliance software does not comply with the legal requirement to flag irregularities for investigation. This decision, in a case brought by an affiliate of retailer Catalyst Cannabis, marks a defeat for the DCC, which contended that its system fulfills its obligations. The ruling stemmed from a closely watched trial held in November, lasting roughly two hours, with Orange County-based Judge Lee Gabriel delivering the verdict. Much of the trial and ruling centered on the specifics of how the DCC employs the software. The article includes a reference to a Metrc tag on a Colorado plant from 2016, photographed by Daniel Oberhaus via www.danieloberhaus.com. It also mentions a related newsbrief on a judge’s ruling threatening Cookies’ solvency, as stated by an exec. The case highlights ongoing challenges in California's cannabis regulatory framework, where the DCC relies on Metrc, a track-and-trace system designed to monitor cannabis from seed to sale. Critics argue that inadequate flagging of irregularities could lead to unchecked violations, undermining market integrity and public safety. The ruling may prompt the DCC to revise its software protocols or face further legal scrutiny. Catalyst Cannabis, known for its chain of retail outlets, pursued the lawsuit to address perceived inconsistencies in enforcement. This development comes amid broader industry concerns about regulatory compliance, data accuracy, and the effectiveness of state-mandated systems in preventing illicit activities. The decision could influence similar cases in other states using Metrc or comparable technologies, emphasizing the need for robust, law-compliant monitoring tools.