The cannabis industry is growing rapidly (by one estimate, the market for recreational cannabis was $9.2 billion in 2017, and is expected to grow as large as $47.3 billion by 2027). Many companies are seriously assessing the potential profit of indirect involvement in the industry by providing services to or investing in businesses that distribute, market, or otherwise sell cannabis. A significant consideration is whether the U.S. Department of Justice will enforce the federal drug laws, which ban marijuana, even in states where the substance is otherwise legal. This update, whose primary author is a former federal prosecutor who worked at the U.S. Department of Justice’s headquarters component in Washington, DC, assesses the status of the enforcement of federal drug law as to marijuana, and also offers due diligence factors that in-house counsel should consider before advising their companies regarding involvement in the cannabis industry.

Read the full article here.

 

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Photo of Barak Cohen Barak Cohen

Barak Cohen represents two kinds of clients: companies and individuals facing government enforcement actions and investigations in highly regulated industries, particularly the healthcare and government contracting industries, and companies that need strategic business advice regarding compliance and regulatory matters in the cannabis industry.

Photo of Paul Hirose Paul Hirose

Paul Hirose serves as outside general counsel for midsized and multinational corporate clients. Paul provides strategic legal advice to help companies reach their business goals and counsels on risk and litigation avoidance strategies, operational issues, intellectual property, and marketing and advertising matters. With…

Paul Hirose serves as outside general counsel for midsized and multinational corporate clients. Paul provides strategic legal advice to help companies reach their business goals and counsels on risk and litigation avoidance strategies, operational issues, intellectual property, and marketing and advertising matters. With over two decades of experience as marketing counsel for Isuzu North America, he has developed a deep understanding of the client perspective that informs all aspects of his work.