State Legalization Efforts Put Federal Marijuana Ban Under Fire, Verano Holdings Leads Lawsuit
Several cannabis companies are challenging the federal ban on marijuana, arguing it has no legal basis. They claim the government’s original justification for prohibition – curbing illegal interstate trade – is no longer valid since many states have legalized marijuana.
This lawsuit counters the government’s attempt to dismiss the case.
What Happened?
The central issue hinges on a 2005 Supreme Court decision (Gonzales v. Raich) that upheld federal prohibition due to concerns about interstate marijuana commerce.
The companies’ lawyers, however, argue that widespread legalization across the U.S. has fundamentally changed the landscape.
“Dozens of states have implemented programs to legalize and regulate medical or adult-use marijuana,” the lawsuit states.
By providing consumers with “safe, regulated, and local access to marijuana,” those states “have reduced illicit interstate commerce, as customers switch to purchasing state-regulated marijuana over illicit interstate marijuana,” reported Marijuana Moment.
Leading the charge is multi-state operator Verano Holdings (OTC: VRNOF) and the Massachusetts-based cannabis businesses Canna Provisions and Wiseacre Farm, Treevit CEO Gyasi Sellers.
Verano’s president Darren Weiss and chief investment officer Aaron Miles are both guest speakers at the upcoming Benzinga Cannabis Capital Conference in Florida this coming April 16-17.
They argue that state-regulated marijuana marketplaces have demonstrably reduced illegal activity. Consumers, they say, prefer the safety and security of legal products.
Federal Ban Fails Under Scrutiny
The lawsuit highlights the significant challenges created by the federal ban on legal cannabis businesses. “While states …