The existing mix of federal and state laws present conflicting licensing, regulatory, and compliance issues that pose risks to cannabis-related businesses. We represent companies throughout the industry, from multistate operators to e-commerce platforms, in complex matters at the federal, state, and local levels and internationally. Our team includes former regulators and prosecutors with years of experience designing and implementing effective compliance programs, conducting internal investigations, negotiating with enforcement authorities and regulators, and representing clients in high-stakes litigation and trials.

Our transactional teams helps clients understand approaches to specific types of deals, relevant market trends, and the perspectives and expectations of their counterparties. We have significant experience representing clients in connection with their acquisition programs and roll-up strategies, as well as with acquisitions and sales of public and private companies. We also provide cannabis due diligence support with authorities in key regulatory areas.

Cannabis businesses have been the subject of numerous civil actions, including consumer class actions involving data privacy, consumer protection, securities laws, and product liability. Our litigators regularly advise consumer products companies across industries, from cannabis, to food and beverage, supplements, pet products, personal care, and technology. Client objectives drive our strategy, whether that is immediate injunctive relief, timely resolution of a business dispute, private arbitration, or victory at trial or on appeal. 

The legality of advertising cannabis products largely depends on state laws, as such advertising is generally illegal under federal law but permitted in certain states when done in accordance with their regulations. We work with in-house legal and marketing teams as they plan and execute advertising, marketing, and promotional campaigns, positioning them to avoid costly and damaging pitfalls. 

Cannabis companies face an increasing risk of becoming the target of California’s Proposition 65 litigation. Virtually any consumer-facing company that conducts business in California is at risk, from manufacturers to distributors and retailers. Our lawyers have defended a wide range of products, ranging from food to personal care products. 

Federal laws and regulations impose stringent requirements on the safety of food and drugs, as well as on the content and format of information that must be included on consumer packaged goods, including ingredients, nutritional information, allergens, and much more. Our regulatory lawyers provide advice to clients regarding such topics as permissible ingredients, packaging, labeling requirements, supply chain, U.S. Food and Drug Administration and other U.S. regulations.

As cannabis legalization continues to expand, we are actively tracking the trends and advising our clients on compliant policies and procedures. Evolving issues include background checks and consideration of cannabis-related arrests and convictions in the hiring process, preemployment drug testing, on-duty use or possession of cannabis products, off-duty use of cannabis products, post-hire drug testing, and accommodating cannabis use. We have negotiated industry-first labor agreements applicable to delivery operations and led the defense of multiple wage-and-hour class actions unique to the cannabis industry.

Cannabis companies must comply with environmental regulations at both the federal and state levels, including facility siting and permitting, water and energy usage, hazardous materials handling and disposal, and other pollution-related issues. Our Environment and Natural Resources practice is widely recognized for its ability to help plan a project’s development, secure the necessary permits in a timely manner, work with stakeholders to reduce the likelihood of litigation or other opposition to a project, and help facilitate ongoing operational compliance. 

Intellectual property (IP) is a core asset for cannabis companies looking to increase their value and differentiate themselves from their competitors, but they often face challenges due to varied state regulations that may conflict with federal law. While the U.S. Patent and Trademark Office has issued cannabis-related patents, it does not allow cannabis companies, including those selling CBD-infused products derived from hemp, to obtain a federal trademark registration. Protecting IP assets is mission-critical for cannabis companies, as are the IP strategies and programs that can keep competitors at bay. Our internationally recognized IP team develops proactive brand protection strategies and aggressively defends these rights in court when disputes arise. 

We advise cannabis clients engaged in every aspect of the payments ecosystem as they expand their e-commerce and technology-powered payments capabilities, including:  

• Payment expansion and optimization. 
• Payment acceptance, authorization, processing, issuing, and settlement services.  
• Platform/marketplace payment expansion. 
• Business-to-business, peer-to-peer, and in-app payments. 
• National Automated Clearing House Association and payment card rule compliance. 
• Virtual currency, gift cards, rebate cards, and other stored-value programs. 
• Loyalty, membership cards, and “points” programs. 
• Bill-payment solutions. 
• Payment industry technology standards. 
• Anti-fraud and payment security standards and practices. 

Because cannabis remains an illegal Schedule 1 substance under federal law, individuals and businesses tied directly or indirectly to the cannabis industry have been unable to take consistent advantage of bankruptcy laws and have found bankruptcy court to be an unfriendly forum. Blocked from bankruptcy relief, distressed cannabis companies (and those who do business with them) may resort to alternative vehicles for resolving financial disputes, such as receiverships or assignments for the benefit of creditors that are governed by state laws rather than federal law. However, unlike the U.S. federal courts, Canadian courts provide an opportunity for cannabis businesses to reorganize or recapitalize due to Canada’s legalization of recreational cannabis. We provide counsel for debtors, creditors, and third parties in out-of-court negotiations, as well as representation in state and federal court litigation across the country.