In the past two months, Saul Ewing LLP has secured seven significant victories on behalf of multiple cannabis industry companies, obtaining dismissals in a series of consumer fraud class actions targeting cannabis products. This includes five dismissals in the U.S. District Court for the Northern District of Illinois and two dismissals in the Cook County Chancery Division.
In each case, the plaintiffs alleged that defendants unlawfully manufactured, marketed, and sold cannabis-infused products containing excessive THC levels and misrepresented their legality under Illinois law. In each instance, the courts rejected these claims at the pleading stage for multiple reasons, including that allegations premised on purported misstatements of law are not actionable under Illinois law.
The decisions also featured notable commentary from the bench. In one opinion, the court observed that the claims "are based on the implicit allegation that Illinois cannabis regulators are incompetent on an elementary level that is simply not plausible." In another, the court cautioned plaintiffs' counsel that "four judges have now dismissed the complaint as implausibly pled… [and] should heed the strong and universal concerns about the plausibility of their legal theories."
These wins in Illinois came shortly after the Saul Ewing LLP team secured a dismissal for a similarly situated case for another large cannabis operator in Arizona federal court.
With approximately twenty nearly-identical lawsuits pending nationwide alleging similar claims against a variety of cannabis companies, these collective victories are significant for the cannabis industry.
Our team included Casey Grabenstein, Elizabeth Thompson, Bethany Beaver, Emily Robbins (all in Chicago), Jon Singer (Baltimore), and Tricia Duffy (Philadelphia).
About Saul Ewing
Saul Ewing is a full-service, national law firm with more than 400 attorneys and a team of top-notch business professionals, all working together to deliver practical, proactive advice and excellent client service. Our diversity of thought, focus on innovation, cross-serving practices, and culture of coaching create a collegial and supportive environment that inspires us to deliver inspired solutions. This is The Saul Approach.
