#cannabisindustry – Litigation – “By far, the most common category of dispute appearing in our analysis is what we classified as commercial disputes, which include actions for breach of contract, landlord-tenant disputes, securities issues, as well as other business torts, such as breach of fiduciary duty and fraud. Roughly 34% of the litigations in our data set were identified as commercial disputes. This should come as no surprise given the industry’s sustained expansion over the years, driven largely by continued growth in mature markets, such as California, and further bolstered by the prospect of new and emerging markets in those states that have recently legalized recreational cannabis or are likely to do so in the near future….
The next most common category of dispute we found in our analysis includes what we classified as actions against state and local governments. These are actions relating to the administration and regulation of a state’s cannabis market, including, for example, licensing disputes or disputes challenging the legality or constitutionality of a state’s cannabis licensing regime. Such actions made up approximately 21% of the litigations in our data set….
Other notable mentions include employment disputes and disputes relating to the collection of unpaid taxes, which constituted approximately 14% and 10% of the litigations in our data set, respectively.”