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A federal judge in Massachusetts has set May 22 as the date for oral arguments to begin in a case that is being co-led by cannabis multi-state operator Verano Holdings (OTCQX:VRNOF) that argues MSOs should be shielded from federal marijuana prohibition laws in states where the plant is legal.
The lawsuit is Canna Provisions v. Garland. Massachusetts-based cannabis businesses Canna Provisions and Wiseacre Farm are also plaintiffs, as well as Gyasi Sellers, founder and CEO of Treevit, a marijuana delivery company. Other MSOs are “foundational supporters” of the suit.
Large law firms are representing the plaintiffs: Boies Schiller and Flexner, and Lesser, Newman, Aleo and Nasser. David Boies, who represented former Vice President Al Gore in Bush v. Gore, and led the federal government’s antitrust case U.S. vs. Microsoft, is the lead plaintiff’s attorney, Marijuana Moment reported.
The key issue in the case is whether the federal government can interfere in cannabis businesses in states where it is legal based on the U.S. Constitution’s Commerce Clause.
The federal government is arguing that there is marijuana interstate commerce going on in Massachusetts as individuals from out-of-state travel there to purchase cannabis.
“As the Supreme Court held decades ago, Congress has the authority to regulate businesses that cater to tourists from out of state, even if the businesses’ transactions occur wholly in-state,” the Department of Justice said in a brief filed earlier in April.
The plaintiffs, however, argue that the Commerce Clause protects cannabis businesses operating in states where marijuana is legal as that activity is regulated by the state and occurs within its borders.
In their initial complaint filed in October 2023, the plaintiffs requested “a declaratory judgment that the Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
In addition, they asked for an injunction preventing DoJ from “enforcing the CSA (either alone or in conjunction with any other federal law such as the Bank Secrecy Act) in a manner that interferes with the intrastate cultivation, manufacture, possession, and distribution of marijuana, pursuant to state law.”
Multi-state operators: Ascend Wellness (OTCQX:AAWH), Curaleaf Holdings (OTCPK:CURLF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), Verano Holdings (OTCQX:VRNOF), and Jushi Holdings (OTCQX:JUSHF).
Cannabis ETFs: AdvisorShares Pure Cannabis ETF (YOLO), ETFMG Alternative Harvest ETF (MJ), and Amplify Seymour Cannabis ETF (CNBS).
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