Lawsuit Against The Feds Could Set Precedent On State Rights: New Mexico Marijuana Firms Move To Stop Seizures

Zinger Key Points
  • According to court documents, Border Patrol agents seized more than $1 million worth of state-licensed products, cash and assets.
  • The companies say the feds’ actions are infringing on their due process rights and demand the return of seized property.

Eight licensed marijuana companies in New Mexico have filed a federal lawsuit against the U.S. Department of Homeland Security and U.S. Customs and Border Protection, alleging constitutional rights violations through property seizures at interior checkpoints. 

According to court documents, Border Patrol agents seized more than $1 million worth of state-licensed cannabis products, cash and other assets from these companies.

  • Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can't afford to miss out if you’re serious about the business.

Alleged Due Process Violations

The companies claim that federal authorities are infringing on their due process rights and demand the return of seized property or equivalent compensation. The suit further requests a jury trial to resolve the issue, asserting that federal agents acted unlawfully by confiscating state-regulated marijuana products and vehicles belonging to cannabis companies and their employees.

Federal Inspections Targeting Cannabis Shipments

The suit alleges that Homeland Security is operating inspection checkpoints along New Mexico's interstate highways, where agents reportedly search vehicles for contraband. 

Although cannabis is regulated within New Mexico, federal agents have seized these shipments, claiming the products are illegal under federal law.

Read Also: Federal Court Schedules Oral Arguments In Landmark Cannabis Prohibition Case

Impact On New Mexico's Cannabis Industry

These incidents have drawn attention from state leaders, including Governor Michelle Grisham Lujan, who previously criticized Homeland Security's actions. The lawsuit argues that continued federal seizures are disrupting New Mexico's cannabis regulatory framework, risking the viability of the state's licensed cannabis businesses

According to MJBizDaily, which first reported on these incidents earlier this year, federal agents have allegedly placed detained cannabis employees on an "International Drug Traffickers List" without issuing charges or documentation, further escalating tensions between state and federal authorities.

Read Next: $8B Market On The Brink: Texas Senator Calls It ‘Uncontrollable,’ Proposes Erasing Hemp

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.