A New York Supreme Court judge struck down some of New York's adult-use cannabis regulations, causing temporary panic among industry stakeholders. The lawsuit, initiated by Leafly Holdings (NASDAQ:LFLY) and others, challenged restrictions on third-party marketing, leading to a narrow decision that invalidated only those specific rules. This incident adds to the challenges facing New York's cannabis industry, including a slow licensing process and the proliferation of illicit shops. A recent bill proposes revoking licenses for shops selling illicit weed.