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420 with CNW — Cannabis MSOs Hire Prominent Law Firm to Sue Federal Government

Jun 6, 2022 | Cannabis News Wire, Media Partners

This post is presented by our media partner Cannabis News Wire

View the original article here.

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Some cannabis firms and stakeholders have joined forces to take the U.S. federal government to court because of policies that they consider to be violate the constitution. They hope to triumph over these prohibition policies, which they argue have impeded their operations. Boies Schiller Flexner LLP will represent the multistate operators’ coalition in court.

David Boies, chairman of the selected law firm, has been involved in a number of high-profile federal cases. The firm’s clientele list has included former U.S. vice president Al Gore and the Justice Department as well as the plaintiffs during the case that led to reversing the ban of same-sex marriages in the state of California.

In a recent interview, Ascend Wellness Holdings CEO and founder Abner Kurtin stated that the suits were an undertaking involving the entire cannabis industry and included one suit which would challenge the 280E provision that hinders the marijuana industry from receiving tax deductions which other companies can take. Another suit is focused on preventing the federal government from impeding marijuana commerce across state borders.

TerrAscend and Curaleaf as well as the American Trade Association of Cannabis and Hemp (ATACH) are some of the prospective supporters of this initiative. ATACH President Michael Bronstein stated in an interview that the group believed that the Internal Revenue Code’s 280E provision and the Controlled Substances Act weren’t being properly applied to legitimate businesses. While he didn’t reveal that ATACH was involved in the ongoing litigation effort, Bronstein did add that the organization was focused on continuing to explore and assess the possible legal options.

The organizations plan to file a pair of lawsuits in federal district court, one of which will call into question the Controlled Substances Act’s constitutionality, and the other, which will take aim at the Internal Revenue Code. The Internal Revenue Code doesn’t allow marijuana businesses to claim federal tax deductions because they are considered to be trafficking in controlled substances.

This IRS issue being resolved could allow marijuana companies that haven’t been able to access federal tax relief to amend their prior tax returns and take deductions.

If the challenge to the status of cannabis under the Controlled Substances Act is successful, this may afford marijuana businesses access to both major stock exchanges and the banking system. Currently, cannabis businesses are operating mostly on a cash-only basis, which makes them targets of crime. This comes as advocates, congressional legislators and state officials have been calling for the SAFE Banking Act to be approved.

At this point, however, it is yet to be determined which federal district courts the suits will be filed in. Plant-touching and ancillary companies such as Advanced Container Technologies Inc. (OTC: ACTX) are likely to follow this particular case since it has potentially huge ramifications for the cannabis industry.

NOTE TO INVESTORS: The latest news and updates relating to Advanced Container Technologies Inc. (OTC: ACTX) are available in the company’s newsroom at https://cnw.fm/ACTX

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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