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

February 18, 2020
Firm Memoranda
From California to Massachusetts and Florida to Illinois, CBD class action suits have been sweeping the country in recent months. One subset of these suits allege, based on state law claims like false advertising, that CBD companies are shortchanging their customers by using product labels that overstate the amount of CBD in their gummies, tinctures, and all manner of other CBD products. Meanwhile, as these suits are being litigated, the FDA is engaged in the process of determining how to regulate CBD products and what standards will apply to CBD products.

This combination of litigation during regulatory development sets the stage for a unique dynamic between the courts and the FDA, which are together making industry-changing decisions for CBD businesses nationwide. Now that the parties have begun filing motions in court, we are offered our first glimpse into how they will prosecute and defend these cases, and particularly into how they will incorporate the FDA's ongoing regulatory process into their arguments. So far, a review of the most recently filed documents 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: 213-443-3221

Robert Becher
Phone: 213-443-3182

Gregory Fuoco
Phone: 213-443-3147