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marijuana growth Source: Shutterstock.

Despite its illegality on the federal level, and a patchwork of legislation at the state and local level, the business of cannabis appears to be booming.

By some estimates, the sector is expected to balloon to $26 billion by 2025. As the industry matures, it has experienced some familiar growing pains: aggressive marketing, overly optimistic projections and some garden variety fraud. This in turn has attracted the attention of both government regulators and private plaintiffs’ lawyers. Investors and industry participants should be aware of these types of claims, as they are not going away any time soon.

Securities Class Actions 

It is a fact of life that publicly traded companies regularly face shareholder securities class actions.  The cannabis industry, including the federally legal (but still regulated) hemp and cannabidiol (CBD) sub-sector, is no different. As cannabis companies mature and leave the hands of early stage private investors to tap the public markets, they will face such claims.

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