Cannabis Co. Suing DEA Over Ignored Application: Why It Matters

Cannabis researcher MMJ International Holdings Corp (MMJ) will sue the DEA over a bulk manufacturing application that was submitted almost five years ago and never processed.

Benzinga spoke with MMJ’s president Duane Boise who confirmed that the company will file a petition for a writ of mandamus in the United State Court of Appeals for the District of Columbia Circuit on Friday.

Boise highlighted some of the arguments presented in the petitions such as that the DEA’s failure to make a determination on the company’s bulk manufacturing registration is unlawful, unreasonable and a disregard for several laws and regulations.

According to Boise and his attorney, the inaction goes directly against Control Substance Act, negatively impacts MMJ and ignores its effort to help those suffering individuals with Huntington’s Disease and Multiple Sclerosis through clinical research.

He also said that the DEA previously acknowledged the importance of this research, even though it has done nothing to support it, adding it can easily correct this.

Arguments on which the request is based include 1) legal standard; 2) the DEA’s failure to comply with the timeline requirements; 3) relief being proper under the Administrative Procedures Act; concluding with 4) that writ of mandamus is a proper vehicle for relief under these circumstances.

As such, MMJ requests the court to issue a writ of mandamus, grant the injunction and issue a declaratory judgment directing the DEA to make a final determination on the company’s application.

Background

News about the request for a writ of mandamus came after MMJ's attorney Megan Sheehan of Sheehan & Associates sent a warning letter to DEA deputy assistant administrator Matthew Strait, and DEA regulatory chief Ricardo Quintero.

“My client has submitted a bulk manufacturing application (W18134021E) for research and pharmaceutical development purposes on December 27, 2018, and your agency has still not processed the application in question,” the letter exclusively procured by Benzinga read. “This inaction is in violation of the Controlled Substance Act (“CSA”), the Marijuana and Cannabidiol Research Expansion Act (“MCREA”), and Drug Enforcement Agency (“DEA”) policies and procedures."

Sheehan noted at the time that the company does not want to institute legal action, but if they don’t respond within seven business days from receipt of the warning letter they’ll have to.

At the time Boise also said that they would prefer to raise awareness about the issue to the Senate and Congress, but if that doesn’t work they'll file a lawsuit in the DC circuit.

Filing the request Friday means MMJ had not received a response from the DEA and had no other option.

Photo: Benzinga edit with images from Billion Photos and Yarygin via Shutterstock