As the national laws change regarding use and sale of substances like cannabis, a growing number of companies are seeking to take advantage of the new freedoms. In Portland and throughout Oregon, some business owners are seeking to expand into various industries and coming to business agreements with other companies to achieve their goals. This can sometimes lead to fits and starts with the business and disputes over financing and purchases. One recent lawsuit exemplifies this.

Italian company files lawsuit against Portland CBD manufacturer

A company that manufactures cannabidiol (CBD) is being sued for $2.2 million by an Italian company. The case stems from the Portland-based company allegedly backing out of a deal to buy equipment from the Italian chocolate maker. The CBD maker had sought to expand into overall wellness. It had accrued more than $90 million and had 150 employees. Still, it was facing challenges when it began layoffs in early 2020. CBD is not the same as marijuana as it does not have the ingredient that impacts a person’s mind when using it. The supposed benefits are overall health improvements.

One issue for companies promoting CBD is the lack of support for it from the Food and Drug Administration and the FDA’s refusal to allow it to be marketed as a dietary supplement. The company had intended to sell chocolates with CBD as an ingredient, hence the purchase of machinery from the Italian chocolate maker. The Italian company says that the CBD company subsequently reneged on its contract, but still owes them for the equipment. The CBD company also had a real estate dispute as it was suing a property company to cancel a lease agreement.

Legal assistance with business disputes is critical

Any business is likely to have issues that it must navigate as it gets off the ground or seeks to expand. With financing, regulatory hurdles and attempts to renegotiate or end agreements that are no longer feasible, it is unavoidable that litigation may arise. For businesses that are confronted by these challenges, it is imperative to have advice and representation from a firm that understands local and international business disputes. Calling for a consultation is crucial with any aspect of business law and should be done as soon as possible.