Federal Judge Blocks Enforcement of Hemp Inventory Surrender Law in USVI

Chief Judge Robert Molloy of the District Court of the Virgin Islands has issued a Temporary Restraining Order blocking the Government of the U.S. Virgin Islands from enforcing a provision of Act No. 9072 that would require licensed hemp retailers to surrender their inventory without compensation.

The order, issued Wednesday at 11:35 a.m., grants emergency relief to Homegrown Bar and Grill, LLC, operator of Little Amsterdam Coffee & Cannabis Lounge at 10 Dronningens Gade on Main Street in St. Thomas. The ruling prevents enforcement of the inventory surrender requirement of Section 3 of Act No. 9072 against Homegrown “or any other licensed hemp retailer” for 14 days, pending a full evidentiary hearing scheduled for 11:00 a.m. on Wednesday, March 11, 2026, in St. Thomas.

The court also waived the bond requirement under Rule 65(c) of the Federal Rules of Civil Procedure.

In his written order, Chief Judge Molloy found that Homegrown satisfied the four elements required for temporary injunctive relief: likelihood of success on the merits, irreparable harm, balance of equities, and public interest. Citing Osorio-Martinez v. Att’y Gen. and Winter v. Natural Resources Defense Council, the court stated that the standard for issuing a temporary restraining order mirrors that for a preliminary injunction.