The Scuttlebutt Featuring Articles About National City Faces Lawsuits, American Support Legalizing Psychedelics and More

In the days of the Armada, a fleet of warships, the scuttlebutt was the rumor or gossip that would spread throughout the ship. Today, Armada Law Corp presents The Scuttlebutt, a daily summery of news articles that people within the cannabis, hemp and plant medicine industries are chatting about along with links to the full articles.

In today’s news:

#californiacannabis – “Two cannabis companies seeking storefront permits are suing National City, alleging the city mishandled their applications and wrongfully disqualified them.

Cali Mota LLC and BCD LLC each filed civil actions last week with the San Diego Superior Court against the city seeking to restrain it from issuing cannabis licenses.”


#psychedelics – “More than 60 percent of Americans support legalizing access to regulated therapeutic psychedelics, according to a new poll. The Berkeley Psychedelics Survey, conducted by the UC Berkeley Center for the Science of Psychedelics (BCSP), polled 1,500 registered voters in the United States from June 9-15, 2023.

Of those surveyed, 49 percent indicated support for the removal of criminal penalties associated with the personal use of psychedelics. More than three-quarters of voters say that it should be easier for scientists to access psychedelics for research purposes.”


#cannabislaw – “The case was one of nearly 65 denied writs of certiorari in an unsigned order handed down by the justices. In doing so, the high court passed on deciding whether a witness could appear in court on video in an instance when traveling and being present at trial “risked substantial illness or death.”
It was Hamid Akhavan and Ruben Weigand’s last shot to get the testimony of a single witness, Visa employee Martin Elliott, tossed and overturn the Second Circuit’s decision affirming their conviction. They claimed that allowing the video cross-examination violated the Sixth Amendment because it did not allow the accused to confront prosecution witnesses.”

Justices Won’t Hear Pot Fraudsters’ Zoom Testimony Fight:


#cannabislaw – “The agency announced an agreement Friday with Klean Herbal Solutions LLC that will permanently ban the business and its owner, Mario Seman, from taking part in Michigan’s cannabis industry in any capacity.
Seman was unable to be reached for comment Tuesday. The business had been nonoperational since September 2021, when the ground adjacent to its facility buckled, according to the state.
Records provided by the agency show it filed formal complaints against Klean Herbal Solutions in October and December 2021, giving notice of its intent to impose fines or other sanctions against the company.”

Mich. Pot Seller Banned From State Industry After Violations:

#cannabislaw – “An order on Thursday from Judge Yvette M. Palazuelos dropped just one cause of action for unjust enrichment against Dreamfields Brands Inc., saying the claim from buyers Jasper Centeno and Blake Wilson “appears duplicative” of their state Unfair Competition Law and False Advertising Law claims – all three of which seek restitution.
“If plaintiffs had alleged only unjust enrichment, perhaps unjust enrichment may have been viable as a standalone cause of action invoking the doctrine of restitution,” Judge Palazuelos said. Dreamfields previously denied the allegation that its listed THC levels were inaccurate.
The suit was otherwise held together with another six causes of action for violation of both laws as well as the Consumer Legal Remedies Act and breach of express warranty, negligent misrepresentation and intentional misrepresentation.”

Suit Over THC In Pot Products Can Go On, Judge Says:

#cannabisindustry – “The first year of legal weed sales in New York state was an “unmitigated disaster” with tax revenue well behind the amounts collected by other states during their first years, according to a new report from a medical marijuana trade group.

New York projected it would generate $56 million in tax revenue from cannabis sales during the first year. That’s far below the $1.07 billion California collected during its first full year of legal marijuana and just slightly above the $42 million Montana brought in during its first year of sales in 2022, according to the report by the Coalition for Access to Regulated & Safe Cannabis (CARSC).”

#californiacannabis – “Herbl, a major licensed California marijuana distribution company, is in receivership after falling behind on a key loan, a source close to the situation confirmed to MJBizDaily on Tuesday.

The collapse of Herbl – which reportedly handled $700 million worth of product sales in 2022 – is the most prominent failure of a cannabis company in the state to date and has major implications across the industry.

Potentially tens of millions of dollars in unpaid invoices are due to brands across the state, which now fear that that revenue, including for product already sold, is lost forever.

The state might also be due millions in unpaid taxes.

Herbl’s financial troubles underscore the upheaval within California’s marijuana industry as brands struggle to collect on unpaid invoices.”

#californiacannabis – “Another symptom of turbulent times is business failures. About 15% of cultivators have surrendered their licenses this year; others are letting fields go fallow, unable to fund this year’s harvest.

Things are no better further up the supply chain. A year ago, there was a robust brand community. In May 2022, there were close to 1,500 brands in the market. A year later, less than a thousand remain.

Distributors are also struggling. A 2022 report estimates that they are sitting on about $600 million dollars of invoices that retailers are unable or unwilling to pay.”

#cannabislaw – “The two-judge panel said that it doesn’t matter if Slumped Kitchen LLC was a sole proprietorship or a limited liability company, only “natural individuals” have a right against self incrimination. The ruling means that the company will have to comply with a subpoena that the state’s Division of Consumer Affairs filed seeking records related to a number of Slumped Kitchen’s practices, including whether or not they verified the ages of those it gifted marijuana and other cannabis products to.
“Whether the documents sought pursuant to the division’s subpoena were created when plaintiff was purportedly a sole proprietorship or some other business formation does not entitle it to protection of its business records under the Fifth Amendment,” the unpublished opinion said. “Even if the [business] was a sole proprietorship, the case law does not extend the Fifth Amendment right against self-incrimination to business records of a corporation, partnership, sole proprietorship, or other business venture.””

NJ Panel Says Pot Gift Service Must Comply With Subpoena:

#cannabisindustry – “The study found the supply-and-demand ratio in Oklahoma is 64 grams of regulated medical cannabis supplied for every 1 gram of demand for a licensed patient. The study states a ratio of 2 grams of supply for every 1 gram of demand is a healthy market, putting Oklahoma’s functional supply-and-demand ratio at 32:1.”

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