Massachusetts Cannabis Firms Challenge Federal Prohibition in Suit Against U.S. Attorney General

NEW YORK— A consortium of Massachusetts-based cannabis companies have taken the unprecedented step of suing U.S. Attorney General Merrick Garland over the federal prohibition of cannabis. The plaintiffs argue that these laws not only infringe upon state rights but also detrimentally impact their businesses due to obligatory cash-only operations, stemming from federal restrictions.

The companies at the vanguard of this legal challenge include Canna Provisions, Inc., Wiseacre Farm, Inc., Verano Holdings Corp., and Gyasi Sellers, a sole proprietor running a cannabis courier venture.

Central to their argument is the 2005 Supreme Court ruling in Gonzales v. Raich. This decision upheld that, in the pursuit of eliminating cannabis from interstate commerce, Congress had a valid reason to override individual state cannabis regulations. However, the plaintiffs assert that the landscape has drastically evolved since that ruling. They contend, “The once-firm intent of Congress and the Executive Branch to ‘eradicate’ marijuana has significantly waned.”

Moreover, the lawsuit emphasizes the establishment of state-regulated cannabis programs, which effectively set a clear demarcation between legal and illicit cannabis. “The persistent federal prohibition, rooted in outdated policy, not only unfairly impacts us but also jeopardizes the communities we serve,” the complaint reads.

The repercussions of the federal cannabis prohibition manifest in myriad ways for these companies. Sellers highlights his inability to secure Small Business Association loans due to the official stance that cannabis ventures, regardless of state compliance, are not entitled to SBA support. Canna Provisions reveals that its affiliation with the cannabis sector has led to exclusion from MassHire — a prominent state career services organization — and has caused personal financial ramifications for its employees, such as bank account closures and mortgage denials. Meanwhile, Wiseacre Farm recounts the missed opportunity to lease land from a willing local farmer, who recoiled due to concerns over jeopardizing federal agricultural grants.

Furthermore, the lawsuit draws attention to the punitive financial measures these businesses face. Notably, the federal ban on cannabis deprives state-regulated cannabis enterprises of federal rights, such as tax deductions, credits, and product trademarks.

In this groundbreaking suit, the plaintiffs urge the courts to declare the cannabis-related segments of the Controlled Substances Act unconstitutional. They seek a directive that prevents the federal government, particularly the attorney general, from intervening in state-sanctioned cannabis operations, spanning cultivation to distribution.