Naomi G. Tellez, Jean E. Smith-Gonnell, and Keenan M. Jones Discuss the Rise of Cannabis Industry Lawsuits and the Role of Trade Organizations in Regulatory Reform

In a recent article in Frantz Ward’s “Full-spectrum Wisdom” column with Cannabis Business Times, Naomi G. Tellez, Jean E. Smith-Gonnell, and Keenan M. Jones examine the growing wave of litigation in the cannabis industry and how collective advocacy through trade organizations may bring about regulatory reform.

Their article, “A Recipe for Avoiding Disaster: How Strong Trade Associations Can Help Neutralize Bitter Ingredients in the Cannabis Industry,” explores how four recent legal disputes and public investigations revealed deeper systemic issues in cannabis regulation, including how:

• Insufficient regulatory enforcement enabled widespread diversion of cannabis products into illicit markets.
• Limited oversight of synthetic THC production and tracking systems allowed bad actors to penetrate the regulated supply chain.
• Misrepresentation and manipulation of compliance data disrupted market integrity and compromised consumer safety.
• Inconsistent testing and weak accountability exposed consumers to unsafe and noncompliant cannabis products.

They discuss how these findings point to the need for strong trade organizations as a more effective solution for building accountability, improving standards, and protecting consumers and suggest cannabis businesses unite efforts to:

• Join or establish trade associations to strengthen industry representation in policy discussions.
• Implement peer benchmarking to increase accountability and support effective self-regulation.
• Cultivate professional networks that promote collaboration and shared solutions.
• Develop educational initiatives to advance public health and safety in cannabis use.

To learn more about how to respond to regulatory challenges and strengthen the cannabis industry through collective action, read the “Full-spectrum Wisdom” article here.

Naomi focuses her practice on business transactions and commercial law, representing manufacturers, investors, lenders, and other businesses in various industries, including the cannabis industry. She drafts and negotiates a wide range of commercial contracts that impact clients’ day-to-day operations and long-term growth. She guides clients through strategic transactions and pre-litigation dispute resolution in heavily regulated markets, including in the context of mergers and acquisitions, distressed asset scenarios, receiverships, and Chapter 11 bankruptcy proceedings.

With more than 15 years of experience in the cannabis industry, Jean focuses her cannabis practice on corporate, regulatory, transactional, and litigation matters for dispensaries, growers, receivers, investors, and other industry stakeholders. She assists clients in disputes, maintaining regulatory compliance, cannabis licensing, mitigating legal risks, establishing and reorganizing their companies, and day-to-day operations.

Keenan represents businesses of all sizes in litigation matters, corporate formation, business development, and protection of intellectual property rights. Since 2017, he has focused his practice on assisting companies operating in the regulated cannabis space, including hemp, marijuana, and ancillary endeavors.

Cannabis Business Times is a publication that focuses on the business of legal cannabis for medical and adult use. They aim to provide timely information to help the reader make informed decisions about running their cannabis businesses and advancing their careers in the cannabis market.