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Civil Procedure,
9th U.S. Circuit Court of Appeals

Feb. 7, 2023

RICO claim dismissal pushes cannabis cultivators off the tightrope

California cannabis businesses may walk the line – paying state taxes and obtaining licenses – but that doesn’t mean they will have any federal protections

Those in the cannabis business walk a tightrope in California. Businesses must stay balanced entirely on state law. Any misstep into federal interstate commerce risks criminal jeopardy. But if a business does walk that line, pay its taxes, and obtain its licenses, which protections of federal laws can it receive? Not a civil RICO action, according to a recent Ninth Circuit decision.

In Shulman v. Kaplan, et al. ...

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