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Cannabis Rescheduling Will Not Open Bankruptcy Doors

As previously discussed by Foley Hoag’s attorneys in its Cannabis practice, a rescheduling of cannabis from a Schedule I Controlled Substance to a Schedule III Controlled Substance will provide cannabis businesses with the...more

Scotus Holds Fraud-Discharge Exception Extends to All Debts Procured by Fraud Irrespective of Debtor’s Culpability

The Supreme Court of the United States held that the Bankruptcy Code’s fraud-discharge exception covers debts obtained by fraud, regardless of who committed the fraud. Debtors who are liable for fraud on account of a...more

Employee of Cannabis Dispensary Denied Personal Bankruptcy Relief

In a case of first impression, a bankruptcy court refused to allow an individual to receive bankruptcy relief because he was, and continued to be, employed by a cannabis business. The United States Bankruptcy Court for the...more

New York Federal Prosecutors Indict Defendant in Connection with NFT Insider-Trading Scheme

Federal prosecutors from the Southern District of New York recently charged Nathan Chastain with wire fraud and money laundering in connection with a purported scheme to illegally profit from sales and purchases of...more

Chapter 11 Debtors Gaining Momentum in Eligibility for PPP Loans

Businesses in chapter 11 bankruptcy cases were barred from receiving federal loans under the Paycheck Protection Program (“PPP”), part of Congress’s Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The...more

United Cannabis Corp.’s Chapter 11 Filing Provide Another Test Case for Industry

On April 20, United Cannabis Corporation filed a Chapter 11 bankruptcy petition for reorganization in Colorado. The Bankruptcy Court for the District of Colorado has previously dismissed bankruptcy cases for marijuana...more

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