DOJ Probes Heightened Woes That Shaped Pot Industry

Law360 (June 26, 2020, 10:11 PM EDT) -- A recent whistleblower complaint about the U.S. Department of Justice's handling of cannabis company mergers has thrown a spotlight on the immense regulatory costs such companies face and raised questions about how much government actions contributed to the broader downturn in the cannabis industry last year.

Cannabis companies spent hundreds of thousands of dollars defending mergers to antitrust authorities in 2019 only to see deals get delayed and sidelined, investors grow nervous, and the market turn south. Now a whistleblower says these investigations were pursued not because of genuine competition concerns but because Attorney General Bill Barr dislikes pot.

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