Photo Credit: Lauren Rudick
Lauren Rudick, managing principal at Rudick Law Group, is on a mission to support entrepreneurs in the evolving cannabis industry. With a background in commercial litigation and a deep personal connection to the plant, Rudick brings a unique perspective to cannabis law.
Her firm has made waves by challenging the misclassification of cannabis through significant legal actions, including their fight against former U.S. Attorney General Jeff Sessions and the federal government. In this interview, Rudick shares insights into her journey to cannabis law and how she’s pushing boundaries to ensure a fair and thriving industry for all.
This interview has been edited for length.
Emerald Magazine: What inspired you to transition to cannabis law, and how has your background influenced your work in the industry?
Lauren Rudick (LR): I discovered the cannabis industry through my mother’s end-of-life care. It was 2009 in Southern California, and she was treated for a rare pancreatic cancer. During her treatment, I forged a relationship with the owner of our local collective, who also had lost his mother to gastric cancer. He devoted his career to producing and dispensing clean, consistent medication for the most compassionate use cases.
After my mother died, I moved back to New York. But there was no [legal] cannabis industry on the East Coast. So, I sat on it as a patient advocate, watching medical programs unfold.
When New York legalized medical cannabis, I was having a “moment” with my litigation career. I felt as though unethical clients were mistreating me and I had no female mentorship, all while starting a family. I pivoted to corporate law to stay active at the firm.
My existing clients wanted to invest in cannabis. At the time, the “big law” attorneys wouldn’t touch cannabis. I had a great relationship with the plant.
While I don’t miss litigation, my background drives value to our practice. I can easily digest litigation cases and analyze impacts on business planning. In New York, we have more than 20 litigations against the New York Office of Cannabis Management (OCM), impacting client strategy and prioritization. I frequently research how disputes could be resolved among clients and their stakeholders. From various standpoints, I know what it feels like to prosecute or defend a litigation. Ultimately, I hope to keep my clients out of litigation, focusing on preventative care.
Emerald: What challenges and opportunities have you encountered while providing legal services to cannabis businesses?
LR: The lack of stability and regulatory history makes it difficult for New York to plan a business, execute a finance or marketing strategy, and plan staffing. In New York, the OCM has moved the goalposts so many times that clients have no choice but to pivot or die.
Emerald: How does your firm navigate the industry’s complex regulatory landscape, and do you help your clients comply with evolving cannabis laws?
LR: We have changed the legal model by eliminating hourly billing. Now, clients can ask questions without worrying about costs. We position ourselves as fractional general counsel, addressing various matters holistically. These include team building and real estate acquisition. We also focus on intellectual property development and protection, along with creating and executing a finance strategy. We frequently work alongside non-attorney subject matter experts, with experience working in every legal state. With eyes everywhere, we can bridge gaps between legal and business impacts and evolve with regulations.
Emerald: What are the most common legal issues your clients face?
LR: Cannabis businesses face many challenges, especially diversely held businesses that enjoy prioritization in licensing. Our clients consistently have real estate woes, financial issues, team-building issues, intellectual property protection issues, etc.
Emerald: Can you share your insights on the impact of federal cannabis policies on state-legal cannabis businesses, and how do you advise your clients in navigating these challenges?
LR: Clients need to prepare for legalization changes. Federal policies are shaping capital markets and the movement of money. We can use the liberalization of cannabis at the federal level to woo investors into cannabis. For the most part, the type of federal policies we are seeing (a move to Schedule III) is likely to have little impact on adult-use operators (except if 280e were eliminated). All non-pharma operators will continue to operate in open violation of federal law. The federal government may have newfound resources to investigate or prosecute state-legal actors who do not adopt a pharma model. Until we have cannabis legalization at the federal level, it remains impossible to completely absolve risks. Yet it helps to remind clients that we are in it together provided that we remain in compliance with state law.
Emerald: What role do you see public relations (PR) playing in the cannabis industry, and how can effective strategies help cannabis businesses succeed?
LR: PR helps share advocacy successes, reduce stigma, promote drug reform, and highlight competitive advantages. Everyone must know the difference between PR and marketing.
Emerald: How do you balance your legal practice with your advocacy work, and how has your involvement in pro bono activities influenced your professional career?
LR: Pro bono matters are the best way to get practical experience. As a young attorney, I procured as many pro bono matters as possible. This allowed for direct client access and courtroom experience. I supported various disaster relief efforts and provided free legal services to budding artists through Volunteer Lawyers for the Arts. Once I had my first paying client in cannabis, I wanted more. I pursued pro bono work through harm reduction networks and organizations like the Drug Policy Alliance, challenging myself to write about legal issues to empower cannabis businesses to advocate for sensible regulations and prevent litigation.
Additionally, I led one of the largest cannabis pro bono cases of all time, Washington v. Barr, litigated up to the Second Circuit Court of Appeals. My firm devoted millions of dollars in attorney time to support this groundbreaking case, reflecting our commitment to advancing justice and shaping policy. I could not be as effective as an outside general counsel without these pro bono opportunities.
As the owner of a new law firm, I will ensure that each attorney exceeds pro bono requirements through the state bar association. I will also charge low bono rates for clients who maintain non-profit status.
Emerald: Can you discuss the significance of your firm’s action against former U.S. Attorney General (AG) Jeff Sessions and the federal government regarding the misclassification of cannabis?
LR: The case was dismissed on a procedural technicality, failing to exhaust administrative remedies. At the time, the former AG had expressed dislike for cannabis use. We believed that an administrative action would be futile. We also represented patients who needed cannabis to live, while administrative proceedings on cannabis took seven to nine years. For the first time, a federal judge declared that cannabis is medicine.
On interstate commerce, similar arguments are being advanced in the current commerce clause challenges. Cannabis should not be classified as a scheduled drug (whether Schedule I or III). Such scheduling determinations are a matter of public safety. We now know that cannabis was categorized as Schedule I as the result of racial bigotry and the former Nixon Administration’s desire to suppress unfavorable political speech. They could not target drug users, but they could target the drug. Cannabis is a medical miracle and should be made as widely available as possible.
Emerald: What future trends or developments do you anticipate? How is your firm preparing to address them?
LR: While we remain excited at what the Empire State has in store, we have eyes on medical research/innovation, interstate commerce, and cannabis tourism. We are seeing medical formulation deals on a global scale, with licensing unique cannabis genetics, allowing for targeted breeding programs and promising medical advancements. We look forward to helping our clients rise together, supporting ecosystems and supply chains, while carving out competitive advantages rooted in a well-developed branding strategy.
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