Industry Risks Prompt Cannabis Practice Groups

Action in December by two short sellers against the Canadian cannabis firm Aphria, which is listed on the New York Stock Exchange, underscored the volatile nature of the burgeoning pot industry. The two investment firms said their actions, reflecting expectations the stock price would fall dramatically, were based on “largely worthless” assets that were part of Aphria’s international holdings of marijuana-growing properties.

The uncertainties associated with the industry have prompted some leading law firms to set up cannabis practice groups. Dorsey & Whitney, Duane Morris, and Burns & Levinson are some of the prominent names that are ready to offer ...