PRACTICE

Cannabis, Hemp & CBD

Overview

Pierson Ferdinand provides comprehensive corporate, regulatory, and litigation services to support companies of all sizes as they navigate and thrive in the rapidly growing cannabis, hemp, and cannabidiol (CBD) industries. We cater to a diverse array of businesses within both the “leaf-touching” and “no-touch” segments of the cannabis sector.

The legal and commercial application of cannabis has given rise to an expansive industry in the United States, and the regulatory landscape surrounding the production, sale, and use of cannabis-related products is complex and varies across jurisdictions. This necessitates forward-thinking and innovative legal advisors.

  • Full Spectrum of Business Transactions

    Like traditional large law firms, we regularly assist clients in the full spectrum of business transactions and related company matters, a large portion of which involves mergers and acquisitions, capital markets, banking and credit, employment, regulatory, corporate governance and board advisory, intellectual property, and financial restructuring and reorganization, among others.

  • Leveraging Technology

    Our Corporate team leverages cutting edge technology in all aspects of practice and our diverse all-partner teams focus on what matters most to our clients and stakeholders, delivering outcomes through shared values of strength, diversity, and collaboration.

  • Forging Close Partnerships

    We believe in forging close partnerships with our clients to better understand their business operations, enabling us to provide more effective counsel and to deliver exceptional value during pivotal moments that often shape profoundly the trajectory and success of our clients’ businesses.

  • Effective Low-Leverage Platform

    Our unique low-leverage platform is not only more cost-effective, it allows us to focus on fewer, targeted engagements than our peers at traditional, elite law firms. This model allows us to get closer to our clients and to know their businesses, preferences, and cadence, and to ultimately meet our clients where they are.

Capabilities

Our partners provide counsel to entrepreneurs and established companies in this industry, including growers, processors, concentrate manufacturers, and wholesale/retail distributors, on an array of legal matters. These encompass business formation, regulatory compliance (including banking, OFAC, and anti-money laundering regulations), licensing, financing, taxation, intellectual property, employment practices, real estate, and litigation issues.

Our partners have directly represented cannabis companies in various capacities, including:  an early-stage bioscience company specializing in products that enhance the delivery of fat-soluble compounds, with a particular focus on cannabinoids; Canadian public companies operating in the United States, navigating ERISA and the Internal Revenue Code to structure competitive 401(k) and employee benefit offerings; guidance to trade associations active in the cannabis industry regarding tax deductibility associated with production (Internal Revenue Code Section 280E) and the establishment of 401(k) retirement plans; a CBD private label manufacturing company in regulatory compliance, contract negotiations, employment matters, corporate liability structuring, and FDA/DEA enforcement; serving as counsel for a leading cannabis CBD laboratory testing facility, addressing regulatory compliance, corporate, and employment legal issues; pharmacies on regulatory guidelines related to the dispensing of cannabis and CBD products; pharmaceutical manufacturing companies with FDA enforcement related to CBD as an active ingredient; CBD over-the-counter (OTC) manufacturers in federal and state regulatory compliance; agricultural entities on federal and state regulations governing hemp production and farming; cannabis franchisees on their obligations under franchise agreements; cannabis manufacturers and distributors with business entity setup and regulatory compliance to avoid franchising regulations; counsel and coordination of licensure requirements; and cannabis manufacturers in business divorces.

In addition to industry representation, we offer guidance to business owners, CEOs, and Human Resources Departments nationwide as they navigate the complexities of medical cannabis under various state laws, including: counsel on employment policies related to drug testing, accommodations for medical marijuana usage, and discrimination issues depending on state law; litigation of employment claims, including breach of contract and whistleblower cases, for a medical marijuana grower/dispensary; consultation on union-related matters, including organizing efforts within the marijuana cultivation industry; provision of education and training on marijuana-related workplace issues at various prominent conferences and training events; and collaboration with major health insurance companies to educate legal professionals, HR experts, and others on workplace matters related to marijuana.

DISCLAIMER:

The possession, distribution, and manufacturing of marijuana remains illegal under United States federal law, with associated significant penalties. Pierson Ferdinand’s advice is intended solely for compliance with federal, state, and local laws and is not to be misconstrued as support for violations of any law.