Multistate cannabis operators are suing the federal government over the marijuana ban
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The federal government could be sued by a coalition of multi-state operators (MSOs) in the cannabis industry, Marijuana Moment reported.
The coalition says it will sue the Feds because they believe their marijuana policy is unconstitutional.
Abner Kurtin, founder and CEO of Ascend Wellness Holdings, told Marijuana Moment that this is an “industry-wide effort.” Kurtin said Curaleaf and TerrAscend are also working closely with him.
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Two lawsuits are being filed in federal district court. The Controlled Substance Act (CSA) will be challenged. The plaintiffs argue that previous court rulings on the federal government’s authority over domestic commerce should not apply to marijuana businesses.
The second lawsuit will focus on IRS Code 208E, which prevents cannabis companies from deducting federal taxes.
According to Kurtin, the lawsuit could have retroactive consequences and cannabis companies could theoretically face years in deductions.
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MSOs are expected to start the process of funding the lawsuits.
This article originally appeared on Benzinga and has been republished with permission.
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