Bankruptcy Court Creates Potential Loophole for Cannabis Businesses Seeking Ch. 7 Protection

With a growing leniency in denying motions to dismiss for asserted violations of the Controlled Substances Act and the anticipated rescheduling of cannabis, it appears that bankruptcy relief may become a viable option even for plant-touching and cannabis-related businesses.

7 minute read September 01, 2024 at 12:05 AM
By
Lawrence J. Kotler and Ryan Spengler
Bankruptcy Court Creates Potential Loophole for Cannabis Businesses Seeking Ch. 7 Protection

In a recent opinion, the U.S. Bankruptcy Court for the Northern District of California (the court) in the matter of In re Callaway, No. 24-30082-DM, 2024 WL 3191673 (Bankr. N.D. Cal.

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