Nature’s Touch Lawsuit Narrowed as Hoboken Cannabis Case Moves Forward

HOBOKEN, N.J. — A lawsuit filed by a medical cannabis company accusing Hoboken officials of corruption is moving forward, though a court has limited the scope of the claims that can be pursued.

Nature’s Touch Med NJ LLC is suing the City of Hoboken and Mayor Ravi Bhalla, alleging the mayor improperly blocked the company from opening a medical cannabis dispensary in the city. The case was filed in 2024 and has continued through the New Jersey court system.

Background of the Dispute

Nature’s Touch was among the companies that won licenses in the state’s medical cannabis license lottery between 2019 and 2021. After a municipality that initially supported the company later withdrew that support, Nature’s Touch sought approval to open a dispensary in Hoboken.

The Hoboken Cannabis Review Board supported the application in January 2022. At that time, City Council approval was not required for a medical dispensary to open.

According to the lawsuit, on Jan. 10, 2022, Nature’s Touch learned that Mayor Bhalla refused to sign a required letter of support. The refusal halted the company’s progress.

The court noted that Bhalla did not issue a letter explaining his reasons for withholding support. The plaintiff has said it did not know the basis for the decision at the time.

Court Limits the Claims

A recent court ruling narrowed the case. The court said Nature’s Touch may pursue only one tort claim — tortious interference — against the city and the mayor.

The court added that if the plaintiff seeks to bring any additional tort claims, it must first move to amend its complaint. A hearing would then be required to determine whether any new claims could be filed in a timely manner.

As a result, the company cannot argue that the city or mayor acted arbitrarily, capriciously, or unreasonably.

Corruption Allegations

Central to the lawsuit are allegations made by former Hoboken Health and Human Services Director Leo Pellegrini. In spring 2024, Pellegrini claimed there was a corrupt deal involving Mayor Bhalla and Jersey City Mayor Steve Fulop.

The court cited Pellegrini’s allegation that, during a Jan. 14, 2022, meeting, Bhalla said he received a call from Fulop, who was upset about the review board’s support for Nature’s Touch. Pellegrini alleged Fulop’s wife planned to open a medical cannabis dispensary in Hoboken.

The lawsuit further alleged that Fulop promised legal work for Bhalla’s law firm through the Jersey City Redevelopment Agency if Bhalla opposed Nature’s Touch.

Pellegrini was later convicted of embezzling money and was sentenced to jail in June 2025.

Denials From Officials

Both Bhalla and Fulop have denied the allegations. Bhalla has rejected the claims in statements to Hudson County View.

Fulop’s press secretary said no one in the mayor’s family has ever applied for a cannabis license in Hoboken or elsewhere. The statement said the building owned by Fulop’s wife was leased to a tenant regardless of any cannabis approvals and did not require special treatment under the law.

The statement also said Fulop never discussed the matter with Bhalla and described Pellegrini as a former employee who targeted Bhalla after being terminated.

Outstanding Issues

Nature’s Touch has argued it did not learn of any possible basis to challenge Bhalla’s decision until May 2024, when Pellegrini made his allegations public.

The court noted that the record remains limited because there has been no discovery or evidentiary hearing. For now, the court said it is accepting the plaintiff’s alleged facts while recognizing they are strongly disputed by the defendants.

Efforts by the defendants to dismiss the lawsuit on technical grounds have so far been unsuccessful