Federal judge dismisses defamation suit filed by attorney-owned marijuana company
Chicago civil rights lawyer Jon Loevy is involved in a legal dispute with a lender over issues related to his cannabis dispensary business. (Photo by Matt Marton/ABA Journal)
A Chicago civil rights law firm that owns marijuana dispensaries has lost the latest round in an ongoing dispute with its lenders after a judge dismissed the firm’s defamation lawsuit against the lenders.
U.S. District Judge Jeremy Daniel of the Northern District of Illinois dismissed for lack of jurisdiction the defamation suit brought by attorneys from Loevy & Loevy against Advanced Flower Capital, or AFC, and its officials, Law.com reports.
Founding firm partner Jon Loevy and partner Michael Kanovitz are co-founders of Justice Cannabis, a company operating medicinal and recreational dispensaries headquartered in Illinois. They have filed multiple suits against Florida-based publicly traded lender Advanced Flower Capital and its officials after the entities entered loan agreements in 2024, according to Law.com. Advanced Flower Capital has also fought back with litigation.
Loevy & Loevy sued for defamation after Advanced Flower Capital spokespeople made comments in April 2025, alleging that Loevy and Kanovitz committed criminal violations of the Racketeer Influenced and Corrupt Organizations Act, fraud and stole $50 million from Advanced Flower Capital, according to an opinion filed Tuesday in the Northern District of Illinois.
The lawyers maintain their innocence and claim that Advanced Flower Capital’s accusations, including statements published in Law360, were merely retaliatory responses after they informed the lending company of their plans to file further litigation.
Loevy and his business ventures were featured in a story in the December 2022-January 2023 issue of the ABA Journal.
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