In June 2020, John W. Elias, a prosecutor in the United States Department of Justice’s Antitrust Division, testified to the U.S. House Committee Judiciary that investigations of cannabis mergers were pursued based on Attorney General William Barr’s personal dislike for the cannabis industry rather than legitimate antitrust issues. Specifically, Elias testified, among other things, that since March 2019, the Antitrust Division has conducted ten investigations of mergers in the cannabis industry. Further, Elias testified that, “While these were nominally antitrust investigations, and used antitrust investigative authorities, they were not bona fide antitrust investigations.” Elias went on to state that, with respect to a proposed $682 million merger between two cannabis companies, MedMen and PharmaCann, career staff in the Antitrust Division initially examined the transaction to determine whether there should be no investigation, a brief investigation or a full investigation. Upon conclusion of its review, career staff determined that “the cannabis industry appeared to be fragmented with many market participants in the states that had legalized the product.” Accordingly, staff concluded that the proposed combination between MedMen and PharmaCann was “unlikely to raise any significant competitive concerns.”
From the publication:
A lot can change in a decade. From illicit plumes of smoke cloaking skate parks and college dorm rooms, to a multibillion-dollar legitimate industry, cannabis has come a long way. In 2019, New Frontier Data – an organisation dedicated to providing information on the legal cannabis market – estimated the industry to be valued at $13.6 billion, with over 300,000 jobs involved.
As is common to growing industries like this (we’re here all day!), lawyers are getting very busy within this new revolution. To this end, we spoke with Duane Morris partner Seth Goldberg to unpack some of the realities of working in such an embryonic space. Goldberg leads Duane Morris’ dedicated Cannabis Industry Group and has been at the forefront of the legal cannabis sector.
To read the full article, please visit the Chambers Associate website.
Duane Morris has been named a top law firm for cannabis law by Business Insider. The publication reached out to 29 players in the cannabis industry, from VCs to startups to multistate operators, to get their take on the best law firms in the industry.
Firm Profile from the Publication
Involved in cannabis: 2015
Recommended by: Panther Opportunity Fund, Salveo Capital
About: Duane Morris’ cannabis industry group, which has been around since 2015, is led by Seth A. Goldberg (Philadelphia), Tracy Gallegos (San Francisco/Las Vegas) and Paul P. Josephson (Cherry Hill, NJ).
Their clients range from those directly cultivating and selling cannabis products to investors in the industry. A spokesperson for the firm said that the group advises clients in a variety of areas, including regulatory, intellectual property, and litigation law.
For more information, please visit the Business Insider website (subscription required).