Tough economic conditions are leaving cannabis businesses with fewer financing and transaction options. Chapter 11 bankruptcy, a tool which many businesses have used to reorganize or liquidate, has historically been inaccessible to cannabis and cannabis-adjacent businesses because potential (or actual) breaches of the Controlled Substances Act (CSA) were viewed as per se cause for dismissal. But the Los Angeles bankruptcy court presiding over The Hacienda Company, LLC recently denied a motion to dismiss the case of a debtor in the business of wholesale manufacturing and packaging of cannabis products.1 The decision gives hope that bankruptcy could be a viable path to maximize value for creditors and purchasers through a sale structured as one of intellectual property (IP), rather than one of an operating cannabis business.

The decision in Hacienda builds on the other recent U.S. Court of Appeals for the Ninth Circuit decisions allowing narrow windows for cannabis-adjacent debtors to benefit from bankruptcy.Continue Reading Distressed Cannabis: Growing Room for Bankruptcy in Ninth Circuit

The U.S. Food and Drug Administration (FDA) recently released new guidance on sourcing and product quality to companies conducting clinical research related to the development of human drugs involving cannabis or cannabis-derived compounds. The agency’s nonbinding recommendations highlight potential opportunities for clinical researchers and sponsors of investigational new drugs after the 2018 Farm Bill significantly altered the regulatory landscape applicable to cannabis products.Continue Reading FDA Releases Guidance on Clinical Research into Cannabis-Derived Drugs

Cannabis: In Focus

  • FDA Rejects Citizen Petitions, Declines To Regulate CBD as a Dietary Supplement
  • Ninth Circuit Affirms Dismissal of Cannabis Company’s RICO Claims
  • Tenth Circuit Holds that 2018 Farm Bill Doesn’t Create Private Cause of Action for Hemp Farmers
  • US Virgin Islands Legalizes Recreational Cannabis

Continue Reading Cannabis Legal Report—Week of January 30, 2023

Cannabis: In Focus

  • New York City Attempts to Crack Down on Illicit Cannabis Market
  • Connecticut Launches Recreational Cannabis Sales, With More States Expected to Follow in 2023
  • Psilocybin State Updates
  • FDA Issues Three New Warning Letters to CBD Product Manufacturers Alleging COVID-19 Benefits
  • Congressional Research Service: Cannabis Banking and the Federal Reserve

Continue Reading Cannabis Legal Report—Week of January 23, 2023

A December 2022 survey from Data for Progress reports that American voters, regardless of political affiliation, support federal cannabis legalization. Specifically, 75% of Democrats, 67% of independents, and 52% of Republicans agreed that cannabis should be legalized at the federal level.

Data for Progress also asked about two equity policies enacted as part of New

California Governor Gavin Newsom signed Assembly Bill 2188 (AB 2188) into law on September 18, 2022. AB 2188 will amend the state’s employment anti-discrimination law, the Fair Employment and Housing Act (FEHA), and make it an unlawful practice for an employer to discriminate against an adult applicant or employee based upon the “person’s use of

Cannabis: In Focus

  • Election Round-up: Two States Approve, Three Reject Adult-Use Cannabis Referendums
  • Northern District of New York Rules on Dormant Commerce Clause and Adult-Use Retail Licenses in New York
  • Kansas Federal Court Dismisses Hemp Seizure Suit
  • Federal Court Dismisses Florida Lawsuit Seeking Gun Rights for Medical Cannabis Patients

Continue Reading Cannabis Legal Report – Week of November 14, 2022

Cannabis: In Focus

  • Federal Court Allows State To Import Cannabis-Related Paraphernalia
  • Biden Announces Pardons of Federal Convictions for Simple Cannabis Possession and a Plan To Review the Current Schedule Status for Cannabis
  • California Struggles To Tame Thriving Illicit Market

Continue Reading Cannabis Legal Report – Week of October 17, 2022