Federal Court Reverses $38.1M Cannabis Contract Judgment, Citing Federal Prohibition

The Sixth Circuit Court of Appeals reversed a $38.1 million breach of contract judgment against cannabis retailer Curaleaf Holdings, ruling that federal marijuana prohibition prevents enforcement of cannabis supply agreements. Hello Farms Licensing Inc. had sued after Curaleaf subsidiaries failed to complete purchases of their 2020-2021 harvests. This decision underscores the ongoing legal challenges cannabis businesses face under federal scheduling, even in states with legalized medical and adult-use programs. The ruling highlights how Schedule I status continues to complicate interstate commerce and contract enforcement in the emerging legal cannabis industry.
Originally published on
Ganjapreneur
By TG Branfalt
Read full article(opens in new tab)Fetched: September 15, 2026 at 10:02 AM


