Supreme Court's RICO Ruling: A Game Changer for Cannabis Industry Liability

The Supreme Court's 5-4 decision in Medical Marijuana, Inc. v. Horn has created a significant new legal risk for cannabis and CBD companies, as it permits plaintiffs to pursue civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act for business or property loss that stems from a personal injury. The case specifically involved a mislabeled CBD product leading to a failed drug test and job loss, and the ruling exposes the industry to potentially devastating treble damages. Beyond the RICO implications, we also covered other pressing regulatory and tax challenges, including the complexities of cannabis rescheduling, state packaging laws, the impact of Section 280E, and the Loper Bright decision, all underscoring the urgent need for companies to seek legal counsel to review labeling, suppliers, and adopt universal compliance standards.