Cannabis litigation is growing as the industry matures. Recently, we’ve seen a suit related to false advertising, but we’re also seeing more traditional business litigation around partnership issues and contract breaches. In Los Angeles, the repeal of Prop. D and implementation of Measure M caused a lot of industry infighting, some of which led to
As we blogged about last week, the SAFE Banking Act is trying to claw its way back from the dead during this lame duck session of Congress. Interestingly, on December 2, Punchbowl News reported that the Department of Justice (DOJ) issued a memo outlining its “issues” with the SAFE Banking Act. Here’s the memo (“Memo”).
It’s no secret that, among California’s many cannabis industry issues, local control continues to stymie the success of the Golden State’s industry. In this, California is not alone– most cannabis is all local. However, after these mid-term elections, there appears to be a bit of a California cannabis local control shift. That’s a good thing.
Proposition 65 cannabis regulations are no joke, and they continue to change. For better or worse, the Safe Drinking Water and Toxic Enforcement Act of 1986 (a/k/a Prop. 65) has long plagued California businesses. Cannabis businesses are no exception (see here and here). Prop. 65 requires businesses to provide “a clear and reasonable warning before they cause
Inflation has been dominating the headlines lately. Prices for gasoline, food (e.g., beef, bacon, eggs), used cars and many other items have spiked over the past year. It seems like there is always breaking news of the latest shortages – baby formula, tampons, eggs, semiconductors, sriracha, lumber, bicycles, etc. Cannabis, however, has seemingly been immune
After many delays, controversies, and changes to the regulations, Los Angeles is getting closer to opening its second (and last) round of retail licensing. Based on the timeline laid out by the LA Cannabis Regulations, Retail Round Two will open either around the end of 2022 or sometime in early 2023. This round will be
When issues arise, many people think filing a lawsuit is the answer. That will initiate the litigation process, which will most likely involve an exchange of information and documents, the process of taking depositions, and probably some motion practice along the way. While in some cases it certainly is, we typically counsel new clients (and
Services agreements are a problem in the Oregon cannabis industry. These agreements have been around since at least 2016, when our office and at least one other law firm developed early templates in consultation with the Oregon Liquor and Cannabis Commission (“OLCC”). That form was called a “management agreement” and you will see them referred
Cannabis purchase order financing is gaining speed in the industry. Because of robust state regulation, high operational costs, high taxes, and the federal illegality of marijuana, a lot of cannabis businesses struggle financially in their day to day business operations. Approaches to this problem takes various shapes and forms across the industry. There are threats
One of the cannabis litigation trends we discussed in a recent webinar was the increasing number of lawsuits alleging some type of fraud by cannabis companies during the capital-raise phase of their businesses. For most businesspeople, raising capital to fund their new business is essential. Just as essential is making sure that you comply with
