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Oregon company withdraws challenge to interstate marijuana trade ban

An Oregon cannabis company withdrew its federal lawsuit challenging a state ban on interstate marijuana commerce, court records show.

Jefferson Packing House, a state-licensed cannabis distributor, sued Oregon officials in U.S. District Court in November 2022, alleging that a state law prohibiting marijuana companies from shipping across state lines was unconstitutional.

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The argument hinged on an interpretation of the U.S. Constitution’s dormant commerce clause, which generally prohibits states from passing laws that favor businesses based in that state.

Though several states, including Oregon, have passed laws that would allow licensed producers to start supplying other markets with marijuana should federal law change, the state contested the suit.

And there were hints that the Oregon case would not succeed.

A judge in Washington state

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