Two medical marijuana companies are taking steps in federal court to intervene in ongoing lawsuits challenging the Trump administration’s ongoing cannabis rescheduling process by joining the side of the government and opposing the litigation from prohibitionists.
The new motion—filed on Monday by attorneys for MedPharm Iowa, LLC, which does business as Bud & Mary’s, and Tri-Mountain Pure, LLC—says the businesses “would be directly harmed” if cannabis reform opponents’ challenges are successful.
Bud & Mary’s, which operates in Iowa, and Tri-Mountain Pure, which is based in Pennsylvania, have both already applied for federal registration using a Drug Enforcement Administration (DEA) form that the agency made available for cannabis businesses seeking protections and benefits that come with rescheduling, the motion says.
The filing claims that the businesses would suffer at least five different kinds of harm if the litigation ends up blocking rescheduling.
First, they said that due to marijuana being partially moved to Schedule III of the Controlled Substances Act (CSA), they are no longer subject to the tax penalty known as 280E that disallows companies that deal in Schedule I and II substances from writing off business expenses. If rescheduling is reversed, they would incur “direct economic harm,” the motion says.
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