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An Overview of Recent Motions to Dismiss or Stay CBD Illegality Class Actions

March 25, 2020
Firm Memoranda
Last month, we reported on recent motions to dismiss in suits alleging CBD companies were shortchanging customers by overstating the amount of CBD in their products. This month, we continue our coverage of the wave of CBD litigation by focusing on another subset of these cases: those alleging it is inherently illegal to sell CBD as a food, dietary supplement, or anything other than an FDA-approved drug. These cases assert state-law claims, such as unlawful competition and false advertising, and seek to halt CBD companies from selling CBD.

Recently, CBD companies have filed a number of motions to dismiss these cases, offering us our first insights into how the parties will prosecute and defend "CBD illegality" cases. CBD companies have been relying heavily in their motions on the fact that the FDA is still engaged in the process of determining how to regulate CBD and have also cited FDA Commissioner Dr. Stephen Hahn's recent statement that it would be a "fool's game to try to even approach" banning people from purchasing CBD products. So far, a review of the most recent filings in these suits shows two main arguments emerging.

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If you have any questions about the issues addressed in this memorandum, or if you would like a copy of any of the materials mentioned in it, please do not hesitate to reach out to:

Diane Cafferata
Phone: +1 213-443-3666

Robert Becher
Phone: +1 213-443-3182

Gregory Fuoco
Phone: +1 213-443-3147