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Cannabis
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March 20, 2024
Future Of Judge-Shopping Reform Hazy After Rule Proposal
The policymaking body for U.S. courts provoked a stir last week when it proposed a rule designed to curb "judge shopping," with observers saying that the policy does address one type of the practice but that it remains to be seen if individual federal district courts will be willing to adopt even that limited reform.
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March 19, 2024
Vicente LLP Sues Recruiter Over Fee Demand In Failed Search
Vicente LLP is alleging that a Florida-based recruiter wants money for nothing after a failed search for a corporate attorney to join the cannabis law firm, during which one of the two proposed candidates turned out to be someone Vicente already worked with and later hired in a different role.
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March 19, 2024
Judge Mulls Smoke Shop Group's Push For Tribe's Damages Data
A New York federal magistrate judge is asking the Cayuga Nation and a former smoke shop, shut down on the grounds it was selling cannabis and untaxed cigarettes, to weigh in on whether the tribe must turn over spreadsheets purportedly detailing damages and lost revenues stemming from the shop.
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March 19, 2024
CBD Co. Investor Oral Contract Suit Tossed For Good
A Nevada federal judge has thrown out for good a suit from the co-founder of CBD company CV Sciences Inc. that alleges an investor reneged on a profit-sharing agreement, saying the latest complaint still doesn't establish that the court has jurisdiction over the investor.
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March 19, 2024
McGlinchey Stafford Opens Seattle Office With 3 Attorneys
McGlinchey Stafford PLLC has opened a downtown Seattle office managed by member Heidi Urness, who is co-chair of the firm's cannabis practice group.
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March 19, 2024
NY Cannabis Co. Says Regulators Retaliated For Criticism
A New York cannabis operator is suing the state's Office of Cannabis Management, saying regulators have unfairly targeted her business with a stop-work order in retaliation for public criticism of the OCM's failure to stop activities that go against its rules.
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March 18, 2024
NY Gov. Audits Pot Regulator After Troubled Rollout
New York Gov. Kathy Hochul on Monday announced an audit of the Empire State's embattled cannabis regulator to address the rocky implementation of the adult-use marijuana market, which has been plagued by delays, litigation and an explosion of unlicensed sellers.
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March 18, 2024
Construction Co. Can't Dodge Fired Pa. Pot Patient's Bias Suit
A Pennsylvania federal judge has kept alive the crux of a former painter's suit alleging an industrial construction company illegally fired her after she tested positive for pot despite holding a medical marijuana card, finding her collective bargaining agreement doesn't bounce the claim from court.
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March 18, 2024
NJ Panel Upholds Right Of Towns To Regulate Cannabis
A New Jersey town has the right to withhold support for a cannabis retailer seeking a state license to sell marijuana, saying that the municipality has the authority to determine location and density requirements for retail businesses selling pot, a three-judge state appellate panel said in a published opinion Monday.
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March 18, 2024
Developers Say Mich. Township Thwarted Pot Dispensary
A local cannabis advocacy group that includes real estate developers has sued a Michigan township in federal court, alleging elected officials have impeded a proposal to build a medical and adult-use dispensary despite residents' support and additional tax revenue the municipality will reap.
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March 18, 2024
Amyris Gets OK To Settle Pot Co.'s $15M Trade Secret Suit
A Delaware bankruptcy judge has approved biotechnology company Amyris' $15.1 million settlement with cannabinoid manufacturer Lavvan, resolving yearslong litigation and arbitration proceedings alleging the debtor misused its then-business partner's trade secrets.
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March 18, 2024
Catching Up With Delaware's Chancery Court
Multimillion-dollar e-cigarette settlements, $4 billion in stock buybacks and a $6.1 million appraisal tweak were among the big-dollar items logged in the Delaware Court of Chancery's ledger last week. Also on the docket: a Panama port project, a news outlet's defamation case, drone disputes and a flood of mail from Tesla shareholders. In case you missed it, here's all the latest from the Chancery Court.
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March 15, 2024
Harris Urges DOJ To Wrap Pot Review 'As Quickly As Possible'
Vice President Kamala Harris urged the U.S. Department of Justice on Friday to complete its review of marijuana's control status "as quickly as possible," saying it was "absurd" and "patently unfair" to keep the drug in the same highly restrictive tier as heroin.
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March 15, 2024
Appeals Court Rejects Medical Cannabis User's Bias Suit
A Connecticut appeals court refused to reinstate a former teaching assistant's lawsuit accusing a nonprofit of firing her because she has epilepsy, which she treats with medicinal cannabis, saying she failed to overcome the organization's argument that she was fired for being high around children.
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March 15, 2024
Cannabis Sellers Want $6M Fees Refunded From Mass. Town
A group of cannabis retailers are suing Great Barrington, Massachusetts, saying the town has illegally collected nearly $6 million in community impact fees, despite admitting in writing that the companies have caused virtually no costs to the town.
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March 15, 2024
Conservative Law Group Asks Justices To Hear FDA Vape Suit
A free-market advocacy group and a vape industry association are urging the U.S. Supreme Court to upend the U.S. Food and Drug Administration's decision denying a manufacturer permission to sell flavored vapes, arguing that the FDA is "moving the goalposts" when it comes to what kind of data is needed when applying.
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March 14, 2024
Conservative Firm Joins Bias Suit Against NY Pot Regulators
Conservative law group Pacific Legal Foundation has decided to represent a would-be cannabis dispensary that claimed New York state's social equity program discriminated against them because they were white men, filing an amended complaint against state regulators which dropped from the suit words "Caucasian" and "white."
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March 14, 2024
Cannabis Cos. Say Federal Position On Pot Is Irrational
The federal ban on marijuana is plainly irrational and negatively affects operators in state-regulated cannabis markets, depriving them of their constitutional rights, a group of marijuana companies told a Massachusetts federal judge on Friday.
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March 14, 2024
NJ Law Firm Avoids Malpractice Suit Over Texas Kratom Death
A Lone Star State appeals court let the New Jersey-based Oshman Firm LLC off the hook on jurisdictional grounds Thursday in a malpractice lawsuit filed by a Texas father who faulted the firm for not filing a wrongful death lawsuit before the statute of limitations expired.
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March 14, 2024
Ariz. AG Says Delta-8 THC Products Unlawful For General Sale
Arizona's attorney general has issued a formal legal opinion finding that retailers who are not approved to sell marijuana cannot lawfully sell intoxicating products derived from hemp, such as products containing delta-8 THC and delta-10 THC.
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March 13, 2024
Mass. Gov. Announces Pardon Plan For Marijuana Possession
Massachusetts Gov. Maura T. Healey has announced plans for sweeping pardons of misdemeanor cannabis possession convictions, following the directive of President Joe Biden, who urged state executives to follow his lead in pardoning low-level marijuana offenses.
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March 13, 2024
Juul Investor Tells Chancery: 'We Were Trying To Help'
A director of Juul Labs Inc. denied on Wednesday that he kept the company out of bankruptcy in 2022 to profit from his own investments, telling Delaware's Chancery Court that he helped Juul refinance and backstopped millions worth of settlements because he wanted the e-cigarette company to succeed.
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March 13, 2024
Ex-CFO Raided Corporate Funds, Trulieve Suit Claims
Florida's largest medical marijuana company, Trulieve, is suing its former chief financial officer in federal court, claiming he misused his corporate credit card, charging "hundreds of thousands of dollars" for expensive clothing, vacations and attorney fees and fraudulently received reimbursement for personal expenses.
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March 13, 2024
Santa Barbara County Wants Pot Raid Suit Tossed Again
The county of Santa Barbara is asking a California federal court to once again throw out a cannabis farmer's claim that his farm was illegally raided by the sheriff's office, saying the latest complaint still falls short of alleging facts to support the claims.
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March 12, 2024
Patent Deal Brings End To Philip Morris Import Ban
The U.S. International Trade Commission has decided to pull its import ban on a line of Philip Morris heated tobacco products following a settlement of its patent fight with British American Tobacco, over the objections of the agency's own in-house lawyers.
Expert Analysis
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Opinion
Litigation Funding Disclosure Should Be Mandatory
Despite the Appellate Rules Committee's recent deferral of the issue of requiring third-party litigation funding disclosure, such a mandate is necessary to ensure the even-handed administration of justice across all cases, says David Levitt at Hinshaw.
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Recalling USWNT's Legal PR Playbook Amid World Cup Bid
As the U.S. Women's National Soccer Team strives to take home another World Cup trophy, their 2022 pay equity settlement with the U.S. Soccer Federation serves as a good reminder that winning in the court of public opinion can be more powerful than a victory inside the courtroom, says Hector Valle at Vianovo.
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NYC Cannabis Landlord Accountability Law Has Limitations
A recently passed bill in New York City, aiming to crack down on the illegal cannabis market by levying fines against landlords who knowingly lease to unlicensed sellers, contains loopholes that may potentially limit the bill’s impact and lead to unintended consequences, say attorneys at Falcon Rappaport.
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Perspectives
Mallory Gives Plaintiffs A Better Shot At Justice
Critics of the U.S. Supreme Court's recent decision in Mallory v. Norfolk Southern claim it opens the door to litigation tourism, but the ruling simply gives plaintiffs more options — enabling them to seek justice against major corporations in the best possible court, say Rayna Kessler and Ethan Seidenberg at Robins Kaplan.
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Cannabis Cos. Must Heed PFAS Risks In Products, Packaging
Cannabis businesses and ancillary service providers will have to grapple with evolving PFAS enforcement, litigation and regulations – most recently enacted in Minnesota – and take steps to mitigate risks posed by forever chemicals in their products and packaging, say Malina Dumas and Amy Rubenstein at Dentons.
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Courts Can Overturn Deficient State Regulations, Too
While suits challenging federal regulations have become commonplace, such cases against state agencies are virtually nonexistent, but many states have provisions that allow litigants to bring suit for regulations with inadequate cost-benefit analyses, says Reeve Bull at the Virginia Office of Regulatory Management.
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Tales From The Trenches Of Remote Depositions
As practitioners continue to conduct depositions remotely in the post-pandemic world, these virtual environments are rife with opportunities for improper behavior such as witness coaching, scripted testimony and a general lack of civility — but there are methods to prevent and combat these behaviors, say Jennifer Gibbs and Bennett Moss at Zelle.
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Employer Drug-Testing Policies Must Evolve With State Law
As multistate employers face ongoing challenges in drafting consistent marijuana testing policies due to the evolving patchwork of state laws, they should note some emerging patterns among local and state statutes to ensure compliance in different jurisdictions, say attorneys at Troutman Pepper.
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Blunders That Made 'Bakked' Cannabis TM Go Up In Smoke
The Trademark Trial and Appeal Board’s recent denial of National Concessions Group’s application to register the mark “BAKKED” illustrates mistakes that cannabis companies must be wary of in pursuing federal registration as examiners may look beyond the four corners of an application, say attorneys at Seyfarth.
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Level Up Lawyers' Business Development With Gamification
With employee engagement at a 10-year low in the U.S., there are several gamification techniques marketing and business development teams at law firms can use to make generating new clients and matters more appealing to lawyers, says Heather McCullough at Society 54.
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Mallory Ruling Leaves Personal Jurisdiction Deeply Unsettled
In Mallory v. Norfolk Southern Railway, a closely divided U.S. Supreme Court recently rolled back key aspects of its 2017 opinion in Daimler AG v. Bauman that limited personal jurisdiction, leaving as many questions for businesses as it answers, say John Cerreta and James Rotondo at Day Pitney.
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Series
NY Banking Brief: All The Notable Compliance Updates In Q2
Among the most significant developments from last quarter, New York regulators and policymakers focused on advancing changes to the supervisory framework for banks after the failure of Signature Bank and continued efforts to keep the Empire State at the forefront of digital asset industry regulation, says Will Giles at Cravath.
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NY, NJ Regs Give Clarity To Cannabis Investors, Ancillaries
Proposed laws and regulations in New York and New Jersey would clarify some previously murky legal waters, thus expanding the ability of investors, lenders and ancillary service providers to work with marijuana business in these states, say David Waxman and Heidi Urness at McGlinchey Stafford.
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5 Ways Firms Can Rethink Office Design In A Hybrid World
As workplaces across the country adapt to flexible work, law firms must prioritize individuality, amenities and technology in office design, says Kristin Cerutti at Nelson Worldwide.
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New Law Will Upend Washington's CBD Industry
Though many questions remain on a Washington law set to go into effect this month that will require retailers to obtain licensure to sell federally legal CBD, the statute’s economic impacts are sure to be enormous, says Jack Scrantom at Harris Bricken.