New Mexico Cookies retailer agrees to $350,000 settlement over opening-day violations

Blue Whale Enterprises Inc., which operates a dispensary under the Cookies brand name in New Mexico, agreed to pay $350,000 in fees to settle allegations of multiple violations during its grand opening event last year, according to a settlement agreement released by regulators.

The New Mexico Cannabis Control Division alleged five violations occurred at the company’s Albuquerque dispensary on Nov. 18, 2023, including allowing a minor onto the premises, promoting overconsumption of cannabis products, and permitting unauthorized onsite consumption.

“Respondent acknowledges that this disciplinary action is for violations cited in Case Number 2024-001,” the settlement stated. Blue Whale Enterprises agreed to pay $50,000 for the five violations outlined in the state’s Notice of Contemplated Action.

To avoid a 14-day suspension of its cannabis business activities, the company will pay an additional $300,000 in installments over 120 days. The CCD said the amount “is equal to the average revenue that Respondent would lose during the suspension.”

Todd Stevens, who heads the Cannabis Control Division, signed the order accepting the settlement on July 19.

The agreement also includes provisions for additional penalties if similar violations occur within two years, such as an automatic 14-day suspension of operations and fines of up to $100,000 for certain infractions.

Blue Whale Enterprises operates the dispensary at 1340 Broadway Blvd in Albuquerque under the California-based Cookies’ flagship brand. The operator had initially requested a formal hearing or settlement after receiving the notice of alleged violations, according to local media reports at the time.

The settlement resolves a case that began when state regulators issued a notice on April 8 detailing the alleged infractions. Evidence cited by the CCD included photographs, inspection checklists, witness testimony, and social media posts from the grand opening event.

July 2024_Settlement Agreement_Blue Whale Enterprises Inc