Last month, a group of more than 200 Oregon cannabis companies managed a big win against a racketeering (RICO) lawsuit. Despite the legal tide seemingly moving in favor of cannabis, MJBiz looks at how businesses can fight similar suits in the future.
- RICO, a law passed in 1970 to prosecute organized crime organizations, gives prosecutors exceptional powers, such as asset seizures, that make the cases difficult for defendants to fight.
- To prepare, the story says businesses should build alliances in the industry and keep “airtight” records.
- Observers say RICO suits can be used as an “organized attack” on the industry by legalization opponents.
- Desperate for cash, more California cities are welcoming REC businesses.