California remains in the vanguard of the movement to legalize cannabis, but the federal government lags behind, still criminalizing cannabis.
Even the most sophisticated clients require expert guidance navigating this treacherous legal landscape. Greenberg Glusker has been a pioneering law firm in this industry with expertise specific to cannabis, including state regulation, taxation, and intellectual property.
We have:
- Pioneered ground-breaking licensing deals for intellectual property.
- For example, we represented the estate of Bob Marley in helping launch the “Marley Natural” brand of cannabis and cannabis-related products in 2014.
- Acted as general counsel to a leading manufacturer and distributor of cannabis products, advising the client on a broad range of business and regulatory issues.
- Prevailed in groundbreaking cannabis-related litigation.
- For example, when nearly $400,000 in cash was seized from a client that works exclusively with manufacturers of cannabis, we successfully litigated the matter, which resulted in a return of the entire amount.
- Advised cannabis-related businesses on tax-related issues.
- Advised landlords on how to minimize the risks of having cannabis-related tenants.
- Helped cannabis distributors and manufacturers obtain state and local licenses.
Although we have substantial cannabis experience and expertise, we also closely monitor future developments, such as changes to California’s regulatory scheme, together with the political climate. We recognize that our clients must balance the significant opportunities in this industry with serious legal risks. Accordingly, we approach these issues with the professionalism that would be expected by any mature industry with the innovation and adaptation necessary for an emerging market.
We can help you:
- Enter the California cannabis market.
- Do business with a California cannabis or cannabis-related company.
- Register and license intellectual property in this space.
- Obtain state and local cannabis licenses.
- Comply with California’s legal and regulatory framework governing cannabis.
- Strategize for minimizing your tax burden.
- Litigate cannabis-related issues.
Note: We are only able to provide these services in jurisdictions where ethically permitted, and we reserve the right to withdraw representation if the federal government indicates that providing such legal services as described violates federal law.
News
Press Release
Michelle Mabugat and Brian Moskal Selected to Los Angeles Business Journal's "Leaders of Influence: Minority Attorneys 2025" List
January 20, 2025 – Los Angeles Business Journal
Media Mention
Why did California ‘kill’ its booming hemp-derived THC industry?
November 25, 2024 – Los Angeles Times
Events
Publications
Article
Calif. Policymakers Should Aid Crashing Cannabis Market
August 4, 2023
Michelle Mabugat, Cannabis Co-Chair, published the article, "Calif. Policymakers Should Aid Crashing Cannabis Market" to Law360. Excerpts: California's cannabis industry is in the throes of a financial crisis that has left many questioning its viability. Tales of debts skyrocketing, tax burdens weighing heavy and businesses teetering on the brink are becoming all too common. All the glitter of the so-called green rush has faded, replaced by a harsh reality check. If the current trend continues unaddressed by policymakers, the industry might be staring down the barrel of a major collapse. Read the full article here.
Article
Cannabis Companies Can Save Millions With One Tax Code Section
April 20, 2023
Michelle Mabugat co-authored the article, "Cannabis Companies Can Save Millions With One Tax Code Section" to Bloomberg Tax. Excerpts: The burgeoning cannabis sector can reap significant tax advantages by using the qualified small business stock rules in Section 1202 of the tax code, which allows investors to exclude the greater of $10 million or 10 times their basis in the stock. But cannabis investors must navigate several uncertainties if they want to pursue them. The first uncertainty is Section 280E, which denies any “deduction or credit” for cannabis businesses. Considering Section 1202 provides an exclusion, which is neither a deduction nor a credit, Section 280E shouldn’t affect a cannabis company’s ability to claim an exclusion under Section 1202 based on a plain reading of the statute. This position isn’t free from doubt, however, as there is no guidance on this issue. Another hurdle lies in Section 1202(e)(3)(C), which denies a QSBS exclusion for any farming business. Unfortunately, the tax code doesn’t provide a comprehensive definition of farming in a single section. Further, it doesn’t provide any definition for farming under Section 1202(e)(3)(C), nor does Congress clarify its meaning in any of Section 1202’s legislative history. Read the full article here.
