How Cannabis Companies Tackle Legal Twists and Turns of Medical Marijuana Regulation

While the market for cannabis (or medical marijuana) grows due to the liberalization of state laws regulating growing, transportation, sale, and use of cannabis, companies that are active in the cannabis space will benefit from staying aware of legal and regulatory pitfalls. When our cannabis lawyers review a proposed cannabis venture, we quickly move to: Spot key legal “red flags” Guide the client with recommendations regarding business structure Advise the client as to how local cannabis law (for example, California cannabis law) might constrain or shape the proposed cannabis business model. Corporate Practice of Medicine, Kickbacks, and Fee-splitting In the cannabis space as elsewhere in the healthcare market, key legal challenges include the prohibition against the unauthorized and corporate practice of medicine (“corporate practice of medicine”).  Corporate practice of medicine has to do with arrangements that regulators could regard as…

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