Duane Morris – Page 4 – Cannabis Industry

September 19, 2023 by Duane Morris

HHS Could Open the Door for More Marijuana Use in Nursing Homes

I have been touting the benefits of medical marijuana for nursing home/senior care residents for many years now. As a cannabis attorney, as well, I have been immersed in the research and studies, showing how marijuana can benefit nursing home residents, just like any other drug our residents may take for their well-being.

But the risks of utilizing marijuana in the nursing home, I’ve been stating, have been too great. Marijuana remains a Schedule I federally illegal controlled substance, and, as such, the Controlled Substances Act defines cannabis and its distinct cannabinoids as possessing “a high potential for abuse … no currently accepted medical use … [and] a lack of accepted safety for the use of the drug under medical supervision.”

Read the full column by Duane Morris partner Neville M. Bilimoria in McKnight’s Long-Term Care News.

September 7, 2023 by Duane Morris

Webinar: Distressed Cannabis M&A

Duane Morris, in partnership with FTI Consulting, will hold its next Cannabis Webinar, Distressed Cannabis M&A, on Thursday, October 5, 2023, from 1:30 p.m. to 2:30 p.m. Eastern.

Learn more and register on the Duane Morris website.

June 26, 2023 by Duane Morris

New Jersey Federal Court Blocks Job Applicant and Employee Lawsuits Regarding Recreational Marijuana Adverse Action, Urges Legislative Intervention

Duane Morris Takeaways: In Zanetich v. Walmart, Inc., Case No. 1:22-CV-05387 (D.N.J. May 25, 2023), a case of first impression, the Judge Christine O’Hearn of the U.S. District Court for the District of New Jersey found the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”), the 2021 law legalizing recreational marijuana use in the state, does not allow job applicants and employees to file lawsuits alleging adverse actions based on marijuana use. The ruling is a boon for employers across New Jersey, who will not face the possibility of private lawsuits filed by applicants and employees based on adverse employment actions by employers for their workers’ off-duty marijuana use. However, the victory may be short-lived, as the Court invited re-examination of the law by way of legislative amendment, enforcement guidance, or New Jersey state court clarity on application of the state’s common law “failure to hire” theory to claims under the CREAMMA.

Case Background

On January 21, 2022, the plaintiff applied for a job with defendants in the Asset Protection Department in one of defendants’ New Jersey locations. A few days after his January 25, 2022 interview, on January 28, 2022, defendants offered plaintiff the job, beginning on February 7, 2022, “subject to him submitting to and passing a drug test.” Id. at 2. Plaintiff alleged that at the time, the defendants had a Drug & Alcohol Policy that stated “any applicant or associate who tests positive for illegal drug use may be ineligible for employment,” which included marijuana. Id.

After plaintiff took a drug test on January 21, 2022 and tested positive for marijuana, he contacted defendants on February 10, 2022 for an update on his application. Two days later, defendants informed Plaintiff that his job offer would be rescinded. When plaintiff asked for the reason for this decision, he was advised it was because he had tested positive for marijuana.

To read the full text of this article, please visit the Duane Morris Class Action Defense Blog.

June 26, 2023June 26, 2023 by Duane Morris

The Cannabis Chamber of Commerce’s “The State of Cannabis: 15 Key US Markets 2023 Annual Report”

Duane Morris partners Michael D. Schwamm and Paul P. Josephson contributed sections on New Jersey and New York to the Cannabis Chamber of Commerce’s “State of Cannabis: 15 Key US Markets 2023 Annual Report.” Also involved were partner Katelynn Gray and associate Deanna Lucci for the New York section, and associate Miranda Bovit for the New Jersey section.

Read the full white paper at the Cannabis Chamber of Commerce website.

June 16, 2023June 16, 2023 by Duane Morris

Up in Smoke: Cannabis TM Rejection Shows Need for Caution

On May 3, the TTAB affirmed the USPTO’s previous decision to reject an application for ‘Bakked’. The filing was intended to cover an essential oil dispenser and was submitted by cannabis company National Concessions Group (NCG). […]

[T]he USPTO examiner, as the TTAB reaffirmed, found that the “primary intended purpose” was to dispense cannabis-based oil to a vaping or smoking device.

Hazy Descriptions

Christiane Schuman Campbell, partner at Duane Morris in Philadelphia, says the word “primary” is significant. Continue reading “Up in Smoke: Cannabis TM Rejection Shows Need for Caution”

April 20, 2023 by Duane Morris

Employee Numbers up at Some Cannabis Msos Despite Challenging Conditions

News of widespread layoffs at cannabis companies across the United States has dominated headlines, but an analysis of employee counts at America’s largest multistate operators shows several actually grew their payrolls last year.

The fact that employee payrolls were up for some marijuana MSOs at the end of 2022 but down for others underscores how several factors can play a role in determining a company’s health.

Those factors include geographic footprint, taxes, operating costs and capital availability, experts said.

“The present moment is the Great Rationalization for the industry,” Paul Josephson, a New Jersey-based partner and leader of the cannabis industry group at the Duane Morris law firm, told MJBizDaily via email.

“Price compression and profitability varies tremendously by state and even within a state. So smart operators are taking a hard look at where they are investing their human capital.”

That means winding down operations in some areas and investing in others with more opportunity for revenue growth.

To read the full text of this article, please visit the MJBizDaily website.

April 10, 2023 by Duane Morris

International Arbitration and Cross-Border Disputes in the Cannabis Industry

As continued legalization of cannabis across jurisdictions in the U.S. and foreign countries causes the industry to become increasingly lucrative, determining proper avenues for dispute resolution controlling underlying agreements and investments has become a critical consideration for business-owners and foreign investors alike. Foreign investment in businesses involving cannabis is subject to a complex web of oversight that could include any combination of local and foreign laws, agreements, regulations, and practices. Many foreign investors in the cannabis industry have turned to international arbitration as a method for navigating these complexities and resolving disputes that may arise from such investments and business relationships. This post explores high-level considerations for foreign investors in the cannabis industry when assessing the viability of arbitration as a means for dispute resolution.

To read the full post by Duane Morris attorney Ramsey Schultz, please visit the Duane Morris International Arbitration Blog.

February 17, 2023March 29, 2023 by Duane Morris

Probe Shows OSHA Regulating Cannabis Cos. Like All Others

For years, legal commentary about cannabis and the workplace has focused on employees’ off-duty cannabis use, as well as employers’ rights to test and discipline employees for off-duty cannabis use.

But with the Occupational Safety and Health Administration’s investigation of Trulieve, one of the largest multistate cannabis companies, the spotlight now shines on the safety of the licensed cannabis workplace itself and whether on-duty contact with cannabis may pose health hazards…

Read the full article.

February 9, 2023February 9, 2023 by Duane Morris

Paul Josephson Named to New Jersey ROI Influencers: Power List 2023

Duane Morris partner Paul Josephson was named to the New Jersey ROI Influencers: Power List for Government Affairs and Cannabis for 2023.

February 2, 2023 by Duane Morris

How Marijuana Pardons Affect Employee Background Checks

On Oct. 6, 2022, President Joe Biden issued a blanket pardon to all citizens and lawful permanent residents convicted of simple possession of marijuana under the federal Controlled Substances Act. The move reflects a shift in attitudes towards low-level drug offenses, and should serve as an impetus to employers to review their policies on criminal record checks.

Because marijuana possession offenses predominantly fall under the jurisdictions of the states, not the federal government, the immediate impact of these pardons is limited. Only about 6,500 people have been convicted for simple possession under federal law and a few thousand more have been convicted under the Code of the District of Columbia.

To read the full text of this article by Duane Morris attorneys Danielle M. Dwyer and Jesse Stavis, originally published in Law360, please visit the firm website.