The issue focused on legal compliance with federal laws requiring medical marijuana dispensaries to obtain permits from the city of Oakland. The lawsuit argued that federal law prohibits medical marijuana dispensaries from operating without proper licenses.

Plaintiffs attorneys Mark Fabiani and Marc Jordan asked U.S. District Judge Sean Cox on Tuesday to dismiss the lawsuit. They also sought an injunction preventing enforcement of the rules by local officials.

But Cox rejected both arguments. He noted that federal law enforcement agencies were permitted to enforce rules governing medical marijuana