Lawsuit Challenges Federal Prohibition of Cannabis

TerrAscend Corp. (TSND), Green Thumb Industries Inc. (GTBIF), Verano Holdings Corp. (VRNOF), Ascend Wellness Holdings Inc. (AAWH), Poseidon Investment Management, and Eminence Capital have jointly hired Boies Schiller Flexnor, a prominent law firm, to file a lawsuit against U.S. Attorney General Merrick Garland in U.S. federal court in Massachusetts. Their aim is to challenge the federal prohibition of cannabis, which they argue hinders state-legal commerce.

The coalition contends that the criminalization of safe and regulated intrastate cannabis, despite being legal in 38 states, is both unconstitutional and detrimental to small businesses. They believe that this outdated federal policy infringes upon state autonomy and undermines the economic potential of the cannabis industry.

Boies Schiller Flexnor’s reputation as a tenacious legal advocate precedes them. Notably, they secured a landmark victory in an antitrust case against Microsoft Corp. and overturned California’s same-sex marriage ban. Now, the cannabis industry is enlisting their expertise to tackle the age-old federal restrictions on marijuana.

While the legal battle ensues, the AdvisorShares Pure U.S. Cannabis ETF (MSOS) has experienced a decline of 30.4% in 2023. In contrast, the Nasdaq COMP has witnessed a notable increase of 20.3% during the same period.

Stay tuned for updates on this groundbreaking legal challenge to the federal prohibition of cannabis.