420 with CNW — Supreme Court Ruling in RICO Suit Ups Litigation Risk for Cannabis Companies
In a closely split 5-4 ruling, the U.S. Supreme Court recently sided with a commercial truck driver who sued three CBD firms under the federal RICO statute. The driver, Douglas Horn, claimed he was fired after a drug test came back positive for THC, despite using a CBD product that was labeled as THC-free. At the center of the case was a legal debate over whether people can bring civil RICO claims to recover financial damages that result from a personal injury. Some courts had previously allowed such lawsuits to move forward, while others dismissed them on the grounds that…