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Tag: cannabis

  • Florida AG Moves to Block Marijuana Legalization from Ballot

    Florida AG Moves to Block Marijuana Legalization from Ballot

    Florida Attorney General James Uthmeier urged the state Supreme Court to block a new recreational marijuana legalization initiative from reaching the ballot, calling it “fatally flawed,” misleading to voters, and unconstitutional. In a 75-page brief, Uthmeier argued the proposal—backed by Smart & Safe Florida and largely funded by medical cannabis operator Trulieve—violates Florida’s single-subject rule, misrepresents restrictions on public use, and conflicts with federal law under the Controlled Substances Act.

    Uthmeier’s position is supported by a coalition of business and anti-drug groups, which contend the initiative would improperly legalize and commercialize cannabis while obligating the state to license federally illegal activity. Opponents say the ballot summary falsely implies a broad ban on public consumption, lacks enforcement mechanisms, and bundles unrelated policy changes—such as advertising limits and business licensing—into a single constitutional amendment.

    The legal challenge comes as Smart & Safe Florida races to meet a February 1 deadline to submit nearly 880,000 valid signatures, amid disputes over tens of thousands of signatures invalidated by state officials. The measure follows a similar 2024 proposal that won a majority but failed to clear Florida’s 60% approval threshold. While polling continues to show strong public support for legalization, the Supreme Court’s ruling will determine whether voters get another chance to decide the issue in 2026.

  • Cannabis Co. Says NY’s Seed-to-Sale Regs Create Undue Costs

    Cannabis Co. Says NY’s Seed-to-Sale Regs Create Undue Costs

    Cannabis company Veterans Holdings, Inc filed a lawsuit this week in New York Supreme Court against the state, challenging its seed-to-sale tracking system, arguing it significantly increases operating and compliance costs for licensed businesses. The program, overseen by the Office of Cannabis Management, requires cannabis products to be tracked from cultivation through retail sale using the “Metrc” platform.

    According to the company, and echoed by other growers and processors, the program’s tagging, reporting, and data-entry requirements sharply increase compliance expenses, particularly for smaller operators. Businesses say costs associated with mandatory tags, system integration, staff training, and ongoing reporting could erode already thin margins in the state’s developing legal cannabis market.

  • Trump Reclassifies/Downgrades Marijuana

    Trump Reclassifies/Downgrades Marijuana

    President Donald Trump signed an executive order today (December 18) directing the reclassification of marijuana as a less dangerous drug, marking a significant shift in U.S. federal drug policy. The move would downgrade cannabis from a Schedule I substance—alongside heroin and LSD—to Schedule III, a category that includes ketamine and some anabolic steroids. While the change would not legalize recreational marijuana nationwide, it could ease regulations, lower tax burdens on the cannabis industry, and expand opportunities for medical research.

    The order is expected to accelerate a review process already underway at the Drug Enforcement Administration, which typically involves extensive public consultation. A similar reclassification effort was proposed under former President Joe Biden, but Trump’s decision has drawn mixed reactions within his own party. Some Republicans strongly oppose any change, arguing marijuana remains harmful to public health and safety, while public opinion has shifted sharply in favor of legalization, with recent polling showing more than two-thirds of Americans support a less restrictive approach.

    Trump’s order also calls for expanded research into cannabis and increased access to CBD products. While the president has emphasized a tough stance on drugs such as fentanyl, he has framed marijuana policy as an area where federal rules should better reflect state-level changes. More than 20 states have legalized recreational marijuana or allow medical use, though federal law has continued to impose stricter limits and potential criminal penalties.

  • Study Focuses on Tobacco and Cannabis Habits of Young Americans

    Study Focuses on Tobacco and Cannabis Habits of Young Americans

    A University of Michigan study of 8,722 Americans aged 12–34 who had used a tobacco, nicotine, and/or cannabis product within the last month found that traditional smoking remains prevalent even as vaping and edibles grow in popularity. Researchers identified six main usage patterns: combustible tobacco (31%), multiple forms of cannabis (27%), nicotine vaping (18%), combined use of nicotine, tobacco, and cannabis (14%), cannabis edibles only (5%), and multiple forms of nicotine and tobacco (5%).

    The study also highlighted narrowing gender differences and higher usage rates among Black and African American youth and young men, suggesting targeted prevention and cessation programs are needed. The study appears in the American Journal of Preventive Medicine and was funded by the National Cancer Institute and NIH.

  • Strategic Partnership to Elevate Cannabis Data Use

    Strategic Partnership to Elevate Cannabis Data Use

    Paradym Solutions and BDSA announced a strategic partnership designed to reshape how cannabis companies use data. At the core of the collaboration is the integration of Paradym’s advanced analytics and semantic AI with BDSA’s comprehensive market intelligence. This combination aims to move the industry beyond static reporting toward real-time, unified insights that can guide decision-making and growth.

    Technologically, the partnership focuses on building a new data ecosystem that mirrors the rigor of mature Consumer Packaged Goods markets. Paradym’s platform will enable clients to merge internal datasets with BDSA’s market data, producing sophisticated analytics that can be applied directly to business strategy. The companies plan to co-develop new metrics and standardized reporting attributes, setting a precedent for how cannabis businesses manage and interpret data.

  • Supreme Court Told Cannabis Ban is Outdated

    Supreme Court Told Cannabis Ban is Outdated

    Two libertarian advocacy groups — the Cato Institute and Pacific Legal Foundation — filed amicus briefs supporting a petition in Canna Provisions Inc. v. Bondi/Garland, which asks the U.S. Supreme Court to reconsider the federal marijuana ban under the Controlled Substances Act (CSA). They argue that the Court’s 2005 ruling in Gonzales v. Raich, which upheld federal authority over intrastate cannabis activity, is outdated given widespread state legalization and shifting federal enforcement.

    A third group, the Americans for Prosperity Foundation, has also filed a brief urging the Court to take the case, claiming the CSA’s application to state-regulated, intrastate marijuana markets exceeds Congress’s commerce-clause powers.

    A recent federal appeals court decision rejecting a similar challenge reaffirmed that Raich remains controlling — underscoring that only the Supreme Court can revisit the precedent.

    The justices will consider the petition at their December 12 conference and announce on December 15 whether they will hear the case. A ruling limiting federal authority over intrastate cannabis activity could have broader implications for federal-state regulatory power, potentially affecting future oversight of nicotine products, heated tobacco, and other controlled substances.

  • Nationwide Pushes Back on Cannabis Coverage, Raising Industry Concerns

    Nationwide Pushes Back on Cannabis Coverage, Raising Industry Concerns

    A Nationwide insurance subsidiary told an Illinois federal court that a cannabis company is not entitled to coverage for a proposed class action accusing it of misrepresenting the safety and labeling of cannabis-infused products, according to ClassAction.org. The insurer argues that the cannabis company’s liability policies do not cover allegations of fraud, misrepresentation, or deceptive practices.

    The underlying lawsuits allege that certain cannabis products—including vape oils marketed as concentrates—were mislabeled to bypass Illinois’ stricter THC limits and misled consumers about potency and safety. Plaintiffs argue the practices violated state consumer protection laws and exposed buyers to unsafe products.

    The Nationwide filing underscores the growing challenges cannabis firms face in securing reliable insurance protection as litigation risks mount. If the court agrees, the cannabis company will be forced to bear defense costs itself, a potentially costly outcome in an industry already grappling with regulatory complexity.

  • Supreme Court Grants Extension in Cannabis Industry Challenge to Federal Ban

    Supreme Court Grants Extension in Cannabis Industry Challenge to Federal Ban

    The U.S. Supreme Court gave marijuana companies more time to file their appeal challenging federal cannabis prohibition, extending the deadline from August 25 to October 24. Justice Ketanji Brown Jackson approved the 60-day extension request filed by Boies Schiller Flexner LLP, which represents Canna Provisions, Gyasi Sellers, Wiseacre Farm, and Verano Holdings.

    Attorneys said the additional time is necessary due to the “significant and complex constitutional issues” involved and to allow state governments, law professors, and advocacy groups to prepare supporting amicus briefs. The Justice Department did not oppose the extension.

    The case seeks to overturn the landmark 2005 ruling Gonzales v. Raich, which upheld Congress’s authority to enforce federal prohibition even against state-legal cannabis activity. Plaintiffs argue that modern developments, including state legalization and shifting federal enforcement policies, have undermined the ruling. While lower courts dismissed the challenge, industry advocates see the appeal as a potential vehicle for the Supreme Court to revisit the federal government’s stance on marijuana. Justice Clarence Thomas previously suggested that Raich should be reconsidered, criticizing the government’s “half-in, half-out” approach to cannabis enforcement.

    The petition would need support from at least four justices for the Court to hear the case.

  • Canopy Growth Q1 Revenue Jumps on Strong Cannabis Sales

    Canopy Growth Q1 Revenue Jumps on Strong Cannabis Sales

    Canopy Growth Corp. posted a 9% Y-Y revenue increase to $72.1M in Q1 FY2026, driven by a 43% surge in Canada adult-use cannabis sales and strong demand for new products, including Claybourne infused pre-rolls. The company achieved $17M of its planned $20M in annualized savings, cutting SG&A expenses by 21%. Gross margin fell to 25% from 35%, hurt by lower Storz & Bickel vaporizer sales and a shift toward higher-cost cannabis products.

    International cannabis revenue rose 4% to $9M, with supply chain upgrades expected to boost European margins later this year. Canopy plans to launch a new Storz & Bickel vaporizer in the second half of 2025.

    Net loss from continuing operations narrowed 21% to $23M, while adjusted EBITDA loss widened to $8M.

  • Cresco Labs to Exit California Cannabis Market

    Cresco Labs to Exit California Cannabis Market

    Cresco Labs Inc. announced plans to sell its California operations as part of a strategic restructuring aimed at boosting cash flow and focusing on higher-margin markets. The multistate cannabis operator is in talks with buyers for its cultivation, manufacturing, and select distribution assets in California, with a deal expected in the coming quarters. Cresco will retain its premium FloraCal brand, continuing its presence in key U.S. markets.

    CEO Charlie Bachtell cited California’s “structural challenges” and the lack of a scaled footprint as reasons for the exit, saying the move will allow Cresco to reallocate capital to core and emerging markets with clearer growth potential.