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The Option of Bankruptcy Grows Clearer for Hemp Businesses

As we’ve written about before, bankruptcy hasn’t been a viable option for cannabis businesses, including ancillary businesses that derive any portion of their revenue from cannabis. That was expected to change for hemp and CBD businesses after the 2014 Farm Bill, and especially after hemp was legalized as a commodity under the 2018 Farm Bill

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Oregon Cannabis Securities Litigation: Another (!) Fraud Lawsuit

The maturation of the Oregon cannabis industry in the past few years has been accompanied by a tremendous increase in mergers and acquisitions and a flood of investment capital into the marketplace.  Not surprisingly our commercial litigators have seen a marked increase in the number of securities lawsuits both here in Oregon and elsewhere.  As

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A Primer on California’s Unruh Civil Rights Act (UCRA)

This summer, I wrote about a Title III lawsuit that was filed against cannabis company NC3 Systems dba Caliva. As a quick refresher, Title III of the Americans with Disabilities Act (“ADA”) requires all businesses to remove any obstacle that interferes with a disabled person’s ability to access their products or services online. The plaintiff

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Federal Court Dismisses RICO Claims: Remedies Would Violate Federal Law

RICO claims in the cannabis industry have certainly evolved over the years, but the general trend of the Courts dismissing those claims or cases altogether has held fast. In Shulman, et al. v. Kaplan, et al., a case filed in the Central District of California, the plaintiffs – who are involved in the production, marketing, and

The Challenge to Watch: Sisley, et al. v. DEA

With the evolution of the United States’ relationship with cannabis over recent decades, numerous parties have petitioned the U.S. Drug Enforcement Administration (“DEA”) to reschedule marijuana. As we all know, the DEA has routinely refused to accept or denied each and every petition, minus one that yielded very specific changes for a synthetic cannabis drug.

Investment and Securities Litigation – Handshake Deals Are Not. Your. Friend.

We’ve been monitoring and reporting on the growing trend of investment and securities fraud litigation in the cannabis industry, and this week brings yet another case. In Murray v. Camp, et al., Murray is suing three Washington entities and their principals for breach of contract, unjust enrichment, fraud, and violation of the Securities Act of

Cannabis Securities Litigation: Alleged Failure to Disclose Material Information Leads to Federal Lawsuit

Keeping up with the multitude of (shifting) state and municipal cannabis regulations is a daunting task for any multi-state cannabis operator. One well-known tool for doing so has been CannaRegs, which offers a web-based subscription service to aggregate and organize cannabis rules, regulations, and legislation.  In January 2020, CannaRegs was acquired by Fyllo, “a digital

Cannabis Trademark Litigation: Veritas Farms Files a Motion to Dismiss Against Veritas Fine Cannabis

Last month, my colleague Alison Malsbury reported on the trademark infringement lawsuit filed by Colorado-based Veritas Fine Cannabis (“VFC”) against Florida-based Veritas Farms. In her post covering the initiation of the lawsuit, Alison explains why the current legal landscape forces plaintiffs in such cases to rely on a two-part strategy of obtaining 1) state trademark

SEC Sues Cannabis Players for $25 Million Offering Fraud

In the most basic terms, offering fraud occurs when a person (or entity) makes material misrepresentations or omissions to potential investors in a new company (most commonly, promising those investors large “guaranteed” returns on their investments). Offering fraud cases have become more prominent in recent years, and it looks like the U.S. Securities and Exchange