News & Insights

Ohio Court Declares Cannabis Sale Contract Illegal, Highlights Ongoing Legal Risks
In a significant decision for the cannabis industry, a federal magistrate judge in Ohio recently dismissed a breach of contract suit involving the $5 million sale of a cannabis business, citing the federal prohibition against marijuana as the primary reason for the ruling. Consistent with a handful of other federal court rulings that have refused to enforce cannabis-related contracts due to the conflict with federal law, this decision underscores the ongoing legal risks for businesses operating in the cannabis space.

Ohio Legalizes Cannabis for Adult-Use
On November 7, 2023, Ohio voters passed a ballot measure to legalize adult-use cannabis, making it the 24th state to embrace legalization outside of medical use. The law passed easily with an estimated 56.79% vote (i.e., 2.144 million voters out of the 3.8 million who cast ballots). The law will take effect on December 7, 2023.