US cannabis companies will sue the feds to end prohibition

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Several companies and major players in the cannabis sector in the United States are uniting to sue the federal government over what they believe to be unconstitutional policies hindering their activities, according to Marijuana Moment which reports the remark of one of the presidents of these companies.

The coalition of multi-state operators (MSO) will apparently be represented by Boies Schiller Flexner LLP, a leading law firm that has been involved in numerous high-profile federal cases.

David Boies, the chairman of this firm, has a long list of clients, including the Department of Justice, former Vice President Al Gore and struck down the ban on same-sex marriage in California, among others. This prominent firm’s willingness to deal with the cannabis industry would be a good indicator that it considers the issue valid.

Companies within the discussion would be Ascend Wellness Holdings, Curaleaf, TerrAscend, and the American Trade Association of Cannabis and Hemp (ATACH), among others.

2 complaints covered

The goal is to file two complaints in federal district court “within the next two months.”

One of the lawsuits will target the federal ban on the intrastate cannabis trade and challenges the constitutionality of the Controlled Substances Act (CSA). Plaintiffs will argue, among other things, that previous court rulings regarding the federal government’s authority over intrastate commerce, including fungibility, should not apply to cannabis companies operating in highly regulated legal markets. States.

The second lawsuit will focus on an Internal Revenue Service (IRS) code, known as 280E, which prevents cannabis companies from claiming federal tax deductions because they allegedly make CSA, trafficking in a controlled substance.

The implications of the IRS fixing this issue could be retroactive, meaning cannabis businesses that were denied federal tax relief could theoretically change their previous tax returns and receive deductions dating back several years. .

Still a long way to go

For now, MSOs are reportedly seeking to provide the financial resources necessary to take this case to court, in hopes that it will eventually reach the Supreme Court if Congress does not act first to put end to prohibition.

Lawsuits could be filed in Illinois, a U.S. state where cannabis is legal and where the regulatory base around cannabis is strong and effective

The timing of this legal challenge is no accident, however. Senate leadership resists law SAFE Banking Act passed by the House of Representatives 6 times in a row.

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