Hi all,

Happy holiday weekend! We can all use a good one.

In the newsletter:

• Does the Stiiizy/Cookies hemp lawsuit have teeth?

Read up,

Alex

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The big news this week was a proposed class action lawsuit in Georgia alleging the Stiiizy, Cookies and other companies, including testing labs and smoke shops, engaged in a criminal conspiracy to sell federally illegal Delta-9 THC products in the guise of federally legal hemp-derived Delta-8 THC.
Green Market Report

• The case “contains absolutely no factual evidence to support its conclusory and baseless claims against STIIIZY,” the brand wrote to Green Market Report. Cookies declined to comment.

Based on independent testing, the lawsuit alleges that products billed as legal Delta-8 in Georgia smoke shops contained far above the 0.3% Delta-9 THC cutoff for a product to be classified as federally legal hemp.

I reached out to Griffen Thorne, an attorney at Harris Sliwoski and frequent contributor to their Canna Law Blog to get his thoughts on the case. While Thorne thinks the hemp-derived products arena could attract lawsuits in the future this one faces “a lot of uphill legal battles.”

For starters, the injury claimed by the plaintiff is that they bought illegal product against their wishes. However, the DEA considers Delta-8 to be federally illegal as well. “If you wanted to buy a legal product, I’m going to make the claim that Delta-8 isn’t legal either,” Thorne said.

Additionally the case was filed under the federal racketeering statute (RICO) designed to take down organized crime. However, Thorne said the lawsuit doesn’t provide any basis for the allegations that the numerous defendants are working in concert.

Federal:

• Longtime legalization ally Rep. Earl Blumenauer (D-Ore.), who is retiring, called on the DEA to clarify what’s happening with their rescheduling decision.
  MJBiz
• A group of lawyers argued that schedule III wouldn’t violate international treaties to which the U.S. is a party.
  Marijuana Moment
• The Navy is no longer kicking out recruits who arrive at boot camp with THC in their system.
  Military.com

Business:

• It’s getting easier for the cannabiz to access real estate: Story Cannabis CEO Jason Vedadi told MJBiz.
• Lawyer turned consultant Marc Hauser found online prediction markets for rescheduling in 2024, and other possible eventualities.
• Beverage consultant Paulo Lacerda Sobral posted about rising above oversaturation in the drinks market.
• “Canopy Growth may go away.”
  New Cannabis Ventures
• Richard Branson argued cannabis regulation makes sense.
• Hearst Media featured a cannabis advocacy ad in its super bowl preview issue. Hearst which publishes the web site GreenState descends from the media empire of William Randolph Hearst, whose newspapers ran anti-weed propaganda in the decades leading up to prohibition.

State and local:

• A Colorado operator is suing regulators arguing the mandated RFID tags tracked by Metrc are an unnecessary burden.
  Law360
• Maryland’s equity program is the latest targeted by a California lawyer.
  Ganjapreneur
• The South Carolina state Senate passed a MED bill. The bill, which its sponsor calls the country’s “most conservative,” goes to the House next.
  WMBF
• Virginia Gov. Glenn Youngkin (R) opposes a House-supported bill to allow REC sales.
  Richmond Times-Dispatch
• Ohio regulators proposed rules for the newly REC state.
  WKBN
• Politico discusses New York Gov. Kathy Hochul’s options for the state’s troubled REC market roll out.

R.I.P.

• Dries Van Agt, the Dutch prime minister who oversaw the Netherlands’ marijuana tolerance policy, and later advocated for full legalization, died at 83.

Fun and interesting:

• Astor Club’s Billy Awards, coming up for 420, will honor New York’s finest product.
• Right wing “Trad Life Guys” are getting worked up about legalization.
  Rolling Stone
• Some in the industry think the new Bob Marley biopic will be good for business.
  HuffPost

State:

• Canna Law Blog discusses how bill AB 2223 would change the state’s cannabis and hemp industries.
• This morning in LA, tax agency CDTFA is hosting an auction of property owned by mostly illegal dispensaries.
• Cannabis Policy Lab put out a report on how to improve licensing and market access.

Local:

• SFGate put together a list of best pot shops on the peninsula and in Ventura County.
• Sponsors of Measure A argued in favor of the ballot measure Humboldt growers say would be devastating to their businesses.
• California City (Kern) will be the second city in the state to partner with the state justice department to combat the illegal market.
  Antelope Valley Press
• There was a fire at a Santa Barbara Co. greenhouse.
  Independent
• Stanislaus Co. is leaning towards putting pot taxes on the November ballot.
  Modesto Bee
• Meet 76 year old “Mama Sue” the first and only Black woman to own a Berkeley dispensary.
  ABC
• McFarland (Kern Co.) could get its first pot shop as soon as this summer.
  KGET

Company milestones:

• SoCal reggae band Iration has a new partnership with Santa Barbara-based Autumn Brands.
  Cannabis Now
• Sonoma Hills Farm and Kiva’s Lost Farm brand announced a new partnership.
• American Weed Co. says it will be the first cannabis brand to be a headline sponsor at a major U.S. music festival. It’s the Cali Vibes Festival this weekend in Long Beach. 

Upcoming:

• UC Berkeley’s Cannabis Research Center is hosting a February 27 webinar on interstate commerce and the future of cannabis.
• The Women’s Canna Awards are set for March 30 in LA.