The cannabis industry faced heightened antitrust scrutiny from the Department of Justice (DOJ) in 2019. There were public reports regarding several “Second Requests” seeking information about potential cannabis transactions. Second Requests are a part of expensive and time-consuming antitrust investigations typically issued in the approximately 2 percent of transactions that present significant anticompetitive concerns. To have several Second Requests within a short period of time in the same industry, particularly in an emerging industry such as cannabis, appeared unusual to many observers. Recent events have shed light on some possible reasons for DOJ’s heightened focus.… Continue Reading High Risk of Second Requests in the Cannabis Industry
Thomas Tyson is an associate in the Antitrust and Competition Practice Group in the firm's San Francisco office.