A judge has ordered New York regulators not to award any more cannabis licenses pending a decision on an explosive lawsuit alleging officials favored convicted drug felons over disabled veterans to sell legal marijuana.

The Monday decision by Albany state Supreme Court Judge Kevin Bryant came after Gov. Kathy Hochul’s administration was sued last week by four New Yorkers who served in the US Armed Forces.

The lawsuit alleges regulators with the Office of Cannabis Management and state Cannabis Control Board failed to set up a legal cannabis market envisioned by New York’s Marijuana Regulation and Taxation Act (MRTA), which specifically lists disabled vets as one of five priority “social and economic equity” groups to get at least 50% of employment opportunities in the budding pot industry.

A hearing on the case is scheduled for Friday.

“Pending the hearing and determination of this application, defendants, their agents and employees are hereby restrained from awarding or further processing any more CAURD [Conditional Adult-Use Retail Dispensary] licenses … pending further order of this court,” Bryant said in the order.

New York’s first licenses went to “justice involved” individuals or partners of felons convicted of selling marijuana, the suit claims.

Only disabled vets who partnered with someone with a marijuana conviction were awarded a license during the first go-round.

The five groups mentioned are convicted felons of marijuana-related crimes, service-disabled veterans, as well as women and minority-owned businesses and “distressed farmers.”

There are currently 21 state licensed cannabis sellers in the state, nine of which are in New York City.

The procedural ruling by the judge rattled members of the cannabis industry, who have suffered by a slow and rocky rollout after New York legalized marijuana for recreational use in 2021.

“From now until Friday and if the judge agrees, they [the vet plaintiffs] will have in effect stopped the entire retail market and prevent growing and showcases and new stores like ours from opening,” said Osbert Orduna, founder of the Queens-based The Cannabis Place delivery service.

Orduna is a disabled vet whose partner has a drug conviction.

A spokesman for the disabled vet-plaintiffs declined comment.