cannabis edibles

Unwrapping the Legal Battles Against Cannabis Edibles

Cannabis companies are often unclear about what edible products are legal to manufacture and distribute. While some cannabis edibles may be legal on a state level, federal regulations prohibit placing some cannabinoids in food altogether. This legal landscape is often confusing for cannabis edibles manufactures, who see their products as a natural expansion of cannabis

cannabis bankruptcy

New Opinion Confirms Growing Trend Away from “Zero Tolerance” Cannabis Bankruptcy Relief Policy

As those in the cannabis industry are fully aware, the option of bankruptcy has not been available to cannabis or many cannabis-adjacent businesses to date. The courts have consistently indicated debtors who work in the cannabis industry or derive meaningful income from cannabis activity (directly or indirectly) cannot use bankruptcy, a federal mechanism, so long

vape liquid

Minnesota Supreme Court Reverses Vape Liquid Conviction

As Minnesota approaches the legalization of marijuana, the Minnesota Supreme Court has just ruled on a case we covered in September 2021.  The case involves the difference between hemp and marijuana and a state prosecutor’s burden to prove what side of the line a leafy or liquid cannabis substance falls. As we explained two years

cannabis stock promotion scheme

Defendants Move to Dismiss SEC’s Stock Promotion Scheme Lawsuit

Last November, I wrote this post about a recent case filed by the Securities and Exchange Commission naming cannabis industry players for an alleged stock promotion scheme (or, as some call them, anti-touting violations). Last month, the primary individual defendant, Jonathan Mikula, filed a Motion to Dismiss the claims against him. The other individual defendant,

COGS

Oregon Tax Court Rules on Marijuana Grow COGS

For several years one of the biggest problems the cannabis industry has faced is I.R.C. Section 280E. It suffocates the regulated marijuana industry. A recent decision by the Oregon Tax Court addresses Section 280E and what may properly fall under Cost of Goods Sold (“COGS”) in the context of a marijuana grow operation. (See here, here, here, here and here

trademark parody

Cannabis Branding: U.S. Supreme Court Agrees to Hear Parody Trademark Case

Cannabis brands are known for clever branding and advertising. In some instances, this gets cannabis companies in trouble. See Cannabis Trademark Litigation: Wrigley Wins. Sometimes cannabis companies try to hew the parody line when riffing on an existing trademark. See Reminder: The Parody Defense to Trademark Infringement is Tricky. As my cannabis litigation colleague, Jihee

trademark infringement

Edible Arrangements v. Green Thumb Industries: Voluntary Dismissal, For Now

We regularly cover intellectual property disputes on the blog, and the Edible Arrangements v. Green Thumb Industries trademark infringement case is one we covered two years ago when filed. Since then, this case appears to have been moderately active, with the parties engaging in the usual discovery and related motion practice. However, things did take

stock promotion scheme

SEC Targets Cannabis Industry Stock Promotion Scheme

It looks like the Securities and Exchange Commission (SEC) has its eye on the cannabis industry and specifically stock promotion schemes. Last month, the Commission announced charges against two cannabis companies and associated individuals for their involvement in “a fraudulent scheme to promote the securities.” The companies at issue are Elegance Brands Inc., Emerald Health

customs

Court of International Trade OKs “Drug Paraphernalia” Import to Washington

The U.S. Court of International Trade (“CIT”) issued a recent opinion that indicates the import or export of “drug paraphernalia” to or from states where cannabis is legal represents an exception to the federal ban imposed by the Controlled Substances Act (“CSA”). Under 21 U.S.C. § 863(d), “drug paraphernalia” is broadly defined as: any equipment,

illegality defense cannabis litigation

Cannabis Litigation: The Illegality Defense and Damages

Around this time last year, my colleague, Jesse Mondry, wrote about a District of Colorado case, entitled Sensoria, LLC et al. v. Kaweske, et al. , which involved a group of plaintiffs who sought to recover their investment in a cannabis business, Clover Top Holdings. The underlying set of facts involve an all-too-familiar cannabis investment