Lawsuit Challenging Federal Prohibition Said To Be In the Works
June 7, 2022A major lawsuit challenging federal cannabis prohibition appears to be brewing. Noted law firm Boies Schiller Flexner is working with a number of multi-state operators on a case against the government, according to reporting from Marijuana Moment. The firm and its chairman, David Boies, are known for arguing high-profile cases before the Supreme Court like the one that overturned California’s ban on gay marriage.
Six major cannabis operators are said to be involved, including Ascend Wellness, Curaleaf, and TerrAscend, as well as the American Trade Association of Cannabis and Hemp, though none have directly confirmed these details.
The legal battle is expected to be split into two lawsuits: one will challenge the ban on interstate cannabis commerce and dispute the constitutionality of the Controlled Substances Act on Commerce Clause grounds, while the other will take aim at the IRS’s code 280E, which prevents cannabis businesses from taking standard business expense deductions and constitutes one of the industry’s greatest foes.—Danny Sullivan
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