Preparing for Marijuana Industry Lawsuit Tidal Wave: The Claims (Part I)
By Hoban Law Group Attorney Steven Schain
“The international market for cannabis is projected to hit $31.4 billion by 2021. Currently, the global market is estimated to be worth $7.7 billion and will see a compound annual growth rate of 60 percent as other countries liberalize their marijuana laws. The United States currently drives 90 percent of global cannabis sales …,” “Global Marijuana Market Will Soon Hit $31.4 Billion But Investors Should Be Cautious,” Fortune Magazine, Nov. 7, 2017.
Here’s how it happens.
Take an incident like when Oregon’s Liquor Control Commission recalled Blue Magoo marijuana strain after 2017 samples were found to contain state-limit-exceeding pesticide residue levels.
Now imagine personal injury lawyers hijacking social media, and leveraging like-minded legislators, regulators and media sources, as they toss a $10,000-claim grenade at Blue Magoo’s growers and processors and any dispensary selling the strain.
Each year defective, faulty or misused products cause serious injuries, property damage and business interruption. Defending litigation or settling claims can materially drain a company’s resources requiring additional regulatory requirement compliance, developing/disseminating product warnings, instituting a product recall, deploying employee time to investigate/mitigate claims, investigating/testing products and assessing risk, and hiring expert consultants and attorneys.