Dear Pot Lawyer,
What’s going on with that cannabis racketeering lawsuit?
It’s a mixed bag. On June 7, the 10th Circuit Court of Appeals affirmed the dismissal of several cases seeking to invalidate Colorado’s marijuana laws. Those cases were spearheaded by the prohibition states of Nevada and Oklahoma. So that was great. But the court also reversed a decision against a Colorado ranch that sued a neighboring grow site, alleging noxious odors and a dent in property values. And that is really a shame.
The case now heads back to district court for consideration. More importantly, it opens up cannabis businesses and their affiliates to racketeering claims under the federal Racketeer Influenced and Corrupt Organizations Act (RICO). I’ve explained here before that RICO is a controversial 1970s statute built to prosecute organized crime. It plays well on television, but courts seem to hate it. Still, RICO has been invoked in cases against disparate groups like the mafia, the Catholic Church, pro-life activists, and soccer syndicate FIFA. RICO allows affiliates of a criminal enterprise to be tried for crimes they themselves did not commit.