Illegality Nixes Most Of Marijuana Investment Scheme Suit

Law360 (January 13, 2021, 10:13 PM EST) -- A Colorado federal magistrate judge dismissed the vast majority of a complex lawsuit brought by an investor of a failed marijuana scheme after finding that he couldn't enforce a contract that involves a federally illegal business.

The court noted in its decision Tuesday that it was possible for plaintiff Gordon Morton to revise his complaint in a way that did not ask for relief that would violate the Controlled Substances Act, and granted leave to amend.

Morton sued in April against a raft of entities controlled by John D. Kaweske over the disintegration of a venture called Clover Top Holdings Inc.,...

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