Aaron Pelley, a Seattle attorney specializing in the cannabis industry who briefly handled a lawsuit against SMRB, said he expects to see more investor litigation involving the state’s cannabis industry. Although intense competition and high taxes have made cannabis a low-margin business for many players, Pelley said, it continues to attract entrepreneurs and investors, many of whom will be disappointed in the results of even honestly run operations.
“It’s still really sexy and cool to think you can own or be part of the ownership interest in a cannabis company and I don’t think the messaging has really gotten out that farming is hard work and retail is limited,” Pelley said. The industry is still “so nascent and so many more companies are failing than succeeding.”