The Compassionate Care Foundation had sued Westampton shortly after the Burlington County town's Land Development Board voted last month to reject its proposed facility in a vacant warehouse.
Board members, who voted 4-3 against the plan, said a medical-marijuana outlet was not an "intended use" when a local zoning measure was enacted.
Steven Weinstein, a lawyer for the Mount Holly-based group, says the decision to drop the suit was made because the group recently decided to grow and sell its marijuana at a warehouse in Egg Harbor Township.
That site in Atlantic County, which still needs a permit from the state health department, would become the second of six proposed centers in New jersey to find a home. Greenleaf Compassion Center in Montclair was the first.
New Jersey legalized medical marijuana in January 2010, but so far none has been sold legally. Only patients with certain conditions, including multiple sclerosis, glaucoma and terminal cancer qualify.
