Obtained dismissal of a multimillion-dollar wrongful death case filed in Prince George’s County, Maryland, against a private security company, alleging inadequate security in an apartment complex. The lawsuit arose out of the multiple shooting deaths of a mother and daughter inside their apartment by the daughter’s on-again off-again boyfriend. The plaintiffs brought their wrongful death and survival action against three entities – the security consultant, the landlord and the property management company – alleging failure to provide adequate security in a case with potential exposure in excess of $4 million. After months of factual and expert discovery, Perry and his colleagues filed a comprehensive motion for summary judgment on the grounds that (1) plaintiffs lacked the requisite expert testimony, (2) there is no duty to protect tenants inside their own privately leased apartment and (3) there was no foreseeability or causation as a matter of law. The plaintiffs failed to file an opposition, conceding the dispositive issues, and ultimately Perry and his colleagues were able to convince plaintiffs’ counsel to dismiss the security consultant with prejudice.

Convinced the Superior Court of the District of Columbia to grant a Motion for Judgment on behalf of a property management company in a property damages case. The plaintiff claimed that two contractors had destroyed several items of her property during past renovation projects. At the conclusion of the plaintiff’s case-in-chief, Perry requested that the court enter judgment for the firm’s client based on the plaintiff’s inability to offer evidence on duty, causation and damages. After hearing argument from both sides, the court granted the Motion for Judgment based on the plaintiff’s inability to offer an accurate valuation of her damages.

Representative Matters

Obtained dismissal of a multimillion-dollar wrongful death case filed in Prince George’s County, Maryland, against a private security company, alleging inadequate security in an apartment complex. The lawsuit arose out of the multiple shooting deaths of a mother and daughter inside their apartment by the daughter’s on-again off-again boyfriend. The plaintiffs brought their wrongful death and survival action against three entities – the security consultant, the landlord and the property management company – alleging failure to provide adequate security in a case with potential exposure in excess of $4 million. After months of factual and expert discovery, Perry and his colleagues filed a comprehensive motion for summary judgment on the grounds that (1) plaintiffs lacked the requisite expert testimony, (2) there is no duty to protect tenants inside their own privately leased apartment and (3) there was no foreseeability or causation as a matter of law. The plaintiffs failed to file an opposition, conceding the dispositive issues, and ultimately Perry and his colleagues were able to convince plaintiffs’ counsel to dismiss the security consultant with prejudice.

Convinced the Superior Court of the District of Columbia to grant a Motion for Judgment on behalf of a property management company in a property damages case. The plaintiff claimed that two contractors had destroyed several items of her property during past renovation projects. At the conclusion of the plaintiff’s case-in-chief, Perry requested that the court enter judgment for the firm’s client based on the plaintiff’s inability to offer evidence on duty, causation and damages. After hearing argument from both sides, the court granted the Motion for Judgment based on the plaintiff’s inability to offer an accurate valuation of her damages.

Representative Matters

Hanrahan and Choren Persuade Court to Grant Dispositive Motion in Campus Assault Case

Catherine Hanrahan (Partner-Washington, DC) and Pernell Choren (Of Counsel-Washington, DC) obtained dismissal of an eleven-count complaint in the Superior Court of the District of Columbia, on behalf of two entities affiliated with a local university’s student housing operations. The case arose from a horrific sexual assault that occurred on campus in August of 2022. The plaintiffs sued Wilson Elser’s clients, asserting a wide range of claims, including negligent hiring, negligent supervision, negligent retention, vicarious liability, respondeat superior, intentional infliction of emotional distress, failure to provide a safe workplace, negligence per se, breach of bond, loss of consortium, and joint enterprise liability – and sought $1.5 million in damages.

Catherine and Perry filed a comprehensive motion to dismiss, adopting and incorporating three prior motions to dismiss from a predecessor case and crafting detailed arguments demonstrating that the plaintiffs failed to plead any facts establishing that their clients, rather than the staffing company that employed both the victim and the assailant, had any responsibility for hiring, supervising, or controlling the perpetrator. They further established that the staffing company maintained "absolute and exclusive" authority over concierge personnel, and that the plaintiffs themselves had admitted in their prior lawsuit that the assailant was employed and paid by an entirely different entity. In a detailed nine-page order, the Court found Wilson Elser’s arguments persuasive and ruled that all the plaintiffs' claims were barred by collateral estoppel based on the court's prior dismissal order in the related action. Accordingly, the court granted the motion and dismissed all of the plaintiffs’ claims with prejudice.

Catherine A. Hanrahan and Pernell A. Choren

Hanrahan & Choren Persuade D.C. Superior Court to Grant Dispositive Motion

Catherine Hanrahan (Partner-Washington, DC) and Pernell “Perry” Choren (Senior Associate-Washington, DC) obtained dismissal of the plaintiff’s Complaint in the Superior Court of the District of Columbia on behalf of a local government agency and one of its employees after filing a motion to dismiss based on the plaintiff’s failure to provide timely pre-litigation notice. Catherine and Perry filed a motion to dismiss that argued that the plaintiff’s Complaint must be dismissed for her failure to comply with the strict notice requirements of D.C. Code § 6-205(a). In an oral ruling, the Court found Catherine and Perry’s arguments persuasive and ruled that the plaintiff’s Complaint is barred by her failure to provide compliant § 6-205(a) before filing suit. Accordingly, the court granted the motion and dismissed the plaintiff’s claims. This is the seventh dismissal that Catherine and Perry have secured on behalf of this same client in the past year and a half. 

Catherine A. Hanrahan and Pernell A. Choren

Hanrahan and Choren Persuade Plaintiff’s Counsel to Voluntarily Dismiss Case Based on Pending Motion to Dismiss

Catherine Hanrahan (Partner-Washington, DC) and Pernell “Perry” Choren (Senior Associate-Washington, DC) recently persuaded plaintiff’s counsel to voluntarily dismiss all claims asserted against their client after filing a motion to dismiss based on the plaintiff’s failure to provide timely pre-litigation notice. Their client, a local government agency, was sued pertaining to the operation and management of a large residential property. Catherine and Perry filed a motion to dismiss that argued the plaintiff’s complaint must be dismissed for her failure to comply with the strict notice requirements of D.C. Code § 6-205(a). Plaintiff’s counsel found Catherine and Perry’s arguments persuasive and agreed to voluntarily dismiss all claims with prejudice. This is the sixth dismissal that Catherine and Perry have secured on behalf of this same client this calendar year.

Catherine A. Hanrahan and Pernell A. Choren

Hanrahan and Choren Successfully Argue Statute of Limitations, D.C. Code § 6-205(a) and Rule 12(b)(6) Defenses to Secure Complaint Dismissal

Catherine Hanrahan (Partner-Washington, DC) and Pernell “Perry” Choren (Senior Associate-Washington, DC) obtained dismissal in the Superior Court of the District of Columbia on behalf of a local government agency that was sued pertaining to the operation and management of a large residential property. Catherine and Perry argued that the plaintiff’s Complaint (1) was duplicative of allegations she was arguing in related litigation; (2) must be dismissed for the plaintiff’s failure to comply with the strict notice requirements of D.C. Code § 6-205(a); and (3) to the extent she was alleging equitable and/or contractual claims within, must be barred by the doctrine of laches and the applicable statute of limitations. In a written decision, the court found Catherine and Perry’s arguments persuasive and ruled that the plaintiff’s Complaint is barred by the applicable statute of limitations, for the plaintiff’s failure to provide compliant § 6-205(a) before filing suit, and because her allegations are likely being addressed in the aforementioned related litigation. Accordingly, the court granted the Motion to Dismiss and dismissed the plaintiff’s claims with prejudice. This is the fifth dispositive motion victory that Catherine and Perry have achieved on behalf of this same client this calendar year.

Catherine A. Hanrahan and Pernell A. Choren

Russell and Choren Secure Dismissal Under D.C. Rules 8(a) and 12(b)(6) for Multi-National Food & Beverage Client

Angela Russell (Partner-Baltimore) and Pernell Choren (Associate-Washington, DC) obtained dismissal in the Superior Court of the District of Columbia for a multinational food and beverage company accused of negligence. Angela and Perry filed a motion to dismiss, arguing dismissal was warranted because the claim contained insufficient pleadings and that pro se litigants like the plaintiff are not entitled to special treatment in the District of Columbia. Angela and Perry demonstrated that the plaintiff failed to effectuate the service of process on either our client or its insurer. In a four-page written decision, the Court found Angela and Perry’s arguments persuasive and ruled that the plaintiff failed to identify any element of any legally viable claim. The Court granted Wilson Elser’s motion and dismissed the plaintiff’s complaint and the amended complaint under Rule 12(b)(6).

Angela W. Russell and Pernell A. Choren

Goodson, Finucane and Choren Obtain Defense Verdict in Medical Malpractice Wrongful Death Case in Maryland

Robert Goodson (Senior Counsel-Washington, DC), David Finucane (Of Counsel-Baltimore, MD) and Pernell “Perry” Choren (Associate-Washington, DC) obtained a defense verdict in Montgomery County Circuit Court in Maryland on behalf of a local plastic surgeon/wound care physician. Plaintiffs alleged that our client breached the standard of care when he issued a verbal order that included a STAT repeat blood draw and instructions to the in-home nurses to send the patient to her primary care physician or the hospital based on the repeat lab values after receiving notification of her low hemoglobin value. Bert and Perry successfully argued at trial that even though our client was not the ordering physician for the patient’s weekly CBCs, he did not violate the standard of care when he quickly acted to ensure that the patient received the treatment required for her condition. The patient ultimately refused the STAT blood draw and died five days later. After a six-day trial spanning a week and a half and less than an hour of deliberation, the jury of six returned a unanimous verdict finding that our client did not breach the standard of care. The verdict did not require the jury to consider whether the patient had assumed the risk or been contributorily negligent for refusing the STAT blood draw on the day in question, or whether the in-home nursing company had been a superseding cause of the patient’s death.

Robert W. Goodson, David J. Finucane and Pernell A. Choren

Hanrahan and Choren Successfully Argue D.C. Code § 6-205(a) Defense and Secure Claim Dismissal

Catherine Hanrahan (Partner-Washington, DC) and Pernell “Perry” Choren (Associate-Washington, DC) obtained dismissal in the Superior Court of the District of Columbia on behalf of a local government agency sued for allegations of negligence pertaining to the operation and management of a large residential property. The court’s primary focus was on the sufficiency of the plaintiff’s mandatory written notice of claim pursuant to D.C. Code § 6-205(a). In their Motion to Dismiss, Catherine and Perry argued that neither of the plaintiff’s alleged § 6-205 notices were submitted to the correct individual at the agency as set forth in the statute. Additionally, they argued that the plaintiff was too vague in describing the time that she was injured and the location of the alleged incident. The court initially granted the  Motion to Dismiss, but provided the plaintiff with the opportunity to file an Amended Complaint and further support how she was compliant with § 6-205. Catherine and Perry renewed their Motion to Dismiss, fully briefed by both parties, and the court held a remote motion hearing. In an oral ruling from the bench, the court found Catherine and Perry’s arguments persuasive and ruled that the plaintiff failed to produce evidence demonstrating that she timely provided the mandatory written notice of claim to the correct individual at the agency. Additionally, the court correctly ruled that actual notice by the agency is not a consideration in a § 6-205 analysis. Accordingly, the court granted the Motion to Dismiss.

Catherine A. Hanrahan and Pernell A. Choren

Hanrahan, Warshauer and Choren Successfully Defend Local Government Agency

Catherine Hanrahan (Partner-Washington, DC) and DC associates Evan Warshauer and Pernell Choren obtained summary judgment in the Superior Court of the District of Columbia on behalf of a local government agency sued for allegations of negligence and breach of contract pertaining to the management of the plaintiff’s apartment. The court’s primary focus was on the sufficiency of plaintiff’s mandatory notice of claim pursuant to D.C. Code § 6-205(a). In their Motion to Dismiss, Catherine, Evan and Perry argued that not only were all of plaintiff’s alleged notices untimely, but none of them was submitted to the correct individual at the agency as set forth in the statute. The court ordered supplemental briefing from the parties to specifically address whether written notice was timely provided to the right person. Once that was completed, and with the Motion to Dismiss still pending, Catherine, Evan, and Perry opted to file a Motion for Judgment, further arguing that the plaintiff did not provide the mandatory notice of claim. In a 14-page decision, the court ultimately decided that the plaintiff failed to produce evidence to create a genuine dispute concerning whether she timely provided a mandatory notice of claim to the correct individual at the agency. Accordingly, the court granted the Motion to Dismiss and the Motion for Judgment.

Catherine A. Hanrahan and Pernell A. Choren

Events

Obtained dismissal of a multimillion-dollar wrongful death case filed in Prince George’s County, Maryland, against a private security company, alleging inadequate security in an apartment complex. The lawsuit arose out of the multiple shooting deaths of a mother and daughter inside their apartment by the daughter’s on-again off-again boyfriend. The plaintiffs brought their wrongful death and survival action against three entities – the security consultant, the landlord and the property management company – alleging failure to provide adequate security in a case with potential exposure in excess of $4 million. After months of factual and expert discovery, Perry and his colleagues filed a comprehensive motion for summary judgment on the grounds that (1) plaintiffs lacked the requisite expert testimony, (2) there is no duty to protect tenants inside their own privately leased apartment and (3) there was no foreseeability or causation as a matter of law. The plaintiffs failed to file an opposition, conceding the dispositive issues, and ultimately Perry and his colleagues were able to convince plaintiffs’ counsel to dismiss the security consultant with prejudice.

Convinced the Superior Court of the District of Columbia to grant a Motion for Judgment on behalf of a property management company in a property damages case. The plaintiff claimed that two contractors had destroyed several items of her property during past renovation projects. At the conclusion of the plaintiff’s case-in-chief, Perry requested that the court enter judgment for the firm’s client based on the plaintiff’s inability to offer evidence on duty, causation and damages. After hearing argument from both sides, the court granted the Motion for Judgment based on the plaintiff’s inability to offer an accurate valuation of her damages.

Firm Highlights

News
Wilson Elser Recognized Among Top Law Firms for Associate Satisfaction in 2026 BTI Report
BTI Consulting Group recently named Wilson Elser among the top firms for associate satisfaction in its “BTI Associate Satisfaction A-Listers 2026” report. Based on more than 5,000 associate responses, BTI recognized 189 law firms for fostering strong associate job satisfaction, with Wilson Elser ranking among the top 36 firms consistently recognized for creating a positive and supportive work environment. The report found that associates increasingly value factors beyond compensation, including meaningful training, mentorship, clear career development opportunities, strong job satisfaction, and active partner investment in associate success. BTI also highlighted the importance of targeted support for women associates and firms’ demonstrated commitment to long-term career growth. The recognition underscores Wilson Elser’s continued focus on cultivating a workplace where associates feel supported, engaged, and positioned for professional success in an increasingly demanding legal industry.
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Publications
An Update on Virginia’s Medical Malpractice Reporting Bill
A prior analysis examined the Virginia legislature’s rejection of a sweeping proposal to overhaul the state’s medical malpractice damages cap. That proposal would have doubled the cap from $3 million to $6 million, allowed prejudgment interest, expanded the statute of limitations, and imposed new insurance requirements on nursing homes. Instead, the legislature passed a narrower, reconciled version of Senate Bill 536 that left the existing damages cap schedule under Virginia Code § 8.01-581.15 untouched but created a new reporting framework requiring commercial insurers and self-insured hospitals to disclose detailed malpractice claims data to legislative leaders. At the time of publication, the reconciled bill had been sent to Governor Spanberger, who had until April 13 to sign, veto, or propose amendments.  Rather than sign or veto the reconciled bill, Governor Spanberger returned it to the legislature on April 12, 2026, with a set of proposed amendments that reshaped several key aspects of the reporting framework. On April 22, the amended reconciled bill was enacted, with an effective date of July 1, 2026. Bottom Line for Virginia Healthcare Entities The medical malpractice damages cap remains unchanged, but a new reporting law takes effect on July 1, 2026, with an initial disclosure deadline of October 1, 2026. The governor’s amendments broadened who must report, redirected all disclosures through the Bureau of Insurance (the “Bureau”), strengthened confidentiality protections, and eliminated the most sensitive reporting metric. However, it also expanded the scope of the law beyond hospitals to reach a wider range of healthcare entities.  Key Changes Under the Enacted Law Expanded Scope of Reporting Entities Unlike the original bill that applied to only hospitals or health systems licensed under Virginia Code § 32.1-123 that self insure or maintain retained-risk arrangements, the enacted law applies to every “medical care facility, as defined in § 32.1-3, or other health care provider” that maintains self insurance, captive insurance, risk retention arrangements, or other retained financial risk. As a result, Virginia healthcare entities that did not consider themselves subject to the original bill should assess whether they now fall within the enacted law’s broader reach. Elimination of the Revenue-Percentage Metric The original bill required self-insured hospitals to disclose total malpractice liability expenditures expressed as a percentage of the hospital’s total patient service revenue. The enacted law eliminates this requirement, leaving three categories of disclosure: (1) the number of covered physicians and providers, (2) claims activity, and (3) malpractice expenditures. This is a meaningful change. The revenue-percentage metric would have provided a uniquely revealing window into each hospital’s financial exposure relative to its operations. Anti-Duplication Provision The enacted law adds a practical provision to prevent duplicative reporting: a healthcare provider is not required to report information that has already been included in a report submitted by the entity providing its self insurance, captive insurance, or risk retention coverage. In other words, if a hospital system’s captive insurer files the required disclosures, individual hospitals covered by that program need not file separate, duplicative reports. Hospitals should confirm with their insurers or risk retention groups whether coverage-level reporting will satisfy their individual obligations. New Insurer Disclosure Requirement For commercial insurers, the enacted law adds a requirement not found in the original bill: insurers must now disclose the identity of the named insureds under their medical malpractice policies. Hospitals insured by commercial carriers should be aware that their identity as a named insured will be part of the insurer’s disclosure to the Bureau. Centralization Through the Bureau of Insurance Perhaps the most structurally significant change involves where disclosures are submitted and how they are processed. The original bill directed all reporting to the chairs and ranking minority members of the House and Senate Committees for Courts of Justice, with the Clerks of each chamber making the information publicly available on the General Assembly’s website. The enacted law redirects this entire process through the State Corporation Commission’s Bureau. Disclosures must now be submitted to the Bureau in a uniform format that it prescribes that is consistent with the format of claim-reporting requirements already established under Virginia Code § 38.2-2228.2. The Bureau is responsible for compiling and analyzing the data, preparing an aggregate summary report, and submitting that report to the legislative committee leaders. Importantly, the Bureau’s aggregate report (not the raw disclosures) is what will be made publicly available on the General Assembly’s website. This is a significant structural improvement and reduces the risk of raw data being taken out of context or used selectively in public debate. Comparison by Size, Region, and Facility Type The enacted law directs the Bureau to present data, to the extent practicable, “in a manner that allows comparison among healthcare providers by size, region, or type of facility,” using anonymized or de-identified formats. While the law prohibits identifying any individual provider, hospitals should be aware that comparisons by size, region, or facility type could narrow the field enough to make identification possible as a practical matter. This provision warrants careful attention when preparing disclosures. Strengthened Confidentiality Protections The original bill stated broadly that disclosures would be confidential and exempt from the Virginia Freedom of Information Act except in aggregate form. The enacted law replaces this with a more detailed and protective mechanism. Reporting entities may designate specific data as confidential proprietary information upon submission, provided they: (i) invoke the exclusion in writing, (ii) identify the protected material, and (iii) state the reason protection is necessary. Information properly designated as confidential will be protected from subpoena responses and public inspection. Officer Certification Requirement Disclosures must be “certified as accurate and complete by an officer of the reporting entity.” This places personal responsibility on a hospital officer for the accuracy of the filing.  Extended Initial Deadline The original bill set the first disclosure deadline as September 1, 2026. The enacted law extends this to October 1, 2026. Subsequent annual disclosures remain due on or before March 31 of each year for the preceding calendar year. Verdicts Exceeding the Cap Both the original and enacted versions require all reporting entities to submit a list of verdicts exceeding the statutory cap. Each entry must include the verdict amount, the amount recoverable after application of the cap, and the year the cause of action accrued. No personally-identifiable information may be disclosed. This provision is clearly designed to build a public record demonstrating the gap between what juries award and what plaintiffs can recover. Automatic Sunset Both versions contain the same expiration mechanism: the reporting requirements expire upon the effective date of any future legislation establishing a new limitation on recovery for medical malpractice actions. This confirms the legislative intent that the reporting framework is a temporary, data-gathering tool designed to inform future changes to the cap. Strategic Implications Virginia’s medical malpractice damages cap is intact but is under active review, and the data collected under this new law will fuel the next round of legislative efforts to increase it. With the October 1, 2026 initial deadline approaching, Virginia hospitals and healthcare entities should consider taking the following steps: 1) determine whether an institution falls within the enacted law’s expanded definition of “medical care facility” or “other healthcare provider;” 2) coordinate the production of the required materials with insurers or risk retention groups; 3) compile the necessary information for disclosure; 4) identify and designate confidential proprietary information; 5) designate a certifying officer; 6) monitor the Bureau’s prescribed format; and 7) prepare for future debates on raising the medical malpractice damages cap.
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Events
Pace Women’s Justice Center Fundraiser: “Cocktails for a Cause”
Jacqueline Hattar (Partner-White Plains, NY) will co-host the Pace Women's Justice Center (PWJC) "Cocktails for a Cause" fundraiser on May 28, 2026, at the Barley Beach House in Rye, New York. The event supports the PWJC's commitment to increasing access to justice by providing free legal services to victims of domestic violence, sexual assault, and elder abuse. The funds raised will support the PWJC’s critical services for survivors of abuse. Jackie is a long-time PWJC Advisory Board member and a past recipient of the Center's “Making A Difference” award. She also serves on the Board of Visitors at the Elisabeth Haub School of Law at Pace University. The PWJC, housed at the Elisabeth Haub School of Law in White Plains, New York, is a self-funded, nonprofit legal center that falls under Pace University's 501(c)(3) status. The Center conducts or participates in more than 140 training and outreach events annually, providing free legal services to some 3,500 survivors of domestic violence, sexual assault, and elder abuse. Serving Westchester and Putnam Counties, the PWJC's mission is to pursue justice for victims and prevent abuse by offering quality legal services, fostering community partnerships, and promoting education and awareness. 
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Publications
PLUS Blog Features Kelly Article on How New Laws Are Rewriting Risk for Manufactured Housing
John Kelly (Partner-New York, NY) authored “From Personal to Real Property: How New Laws Are Rewriting Risk for Manufactured Housing,” posted on the May 14, 2026, PLUS Blog. In the article, John discusses how recent state and proposed federal legislation might reshape the legal and insurance landscape for manufactured housing. He explains that New York’s Land-Home Property Act now allows certain manufactured homes to be reclassified from personal property to real property if they meet requirements such as permanent foundations, land ownership, or long-term lease arrangements. This change could ease financing and tax burdens for homeowners while aligning these homes more closely with traditional single-family residences. The article also discusses proposed federal legislation that would eliminate the longstanding requirement that manufactured homes be built on permanent steel chassis. John notes that removing this mandate could reduce construction costs, encourage permanent placement of homes and expand affordable housing opportunities, particularly in urban areas.
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Client Wins
Felder and Allin Prevail in Suspected Marine Li-Ion Battery Fire in Utah Federal Court
Otis Felder (Partner-Los Angeles, CA) and Taylor Allin (Partner-Phoenix, AZ) combined to obtain a judgment in favor of a boat owner before the U.S. District Court for Utah. The Salt Lake federal court entered judgment in exoneration of the owner in connection with a fire that occurred on October 26, 2023, on Lake Powell, causing damage to the vessel along with the surrounding dock infrastructure and other vessels. It was suspected that the fire was caused by lithium-ion batteries. While no one was on board the vessel at the time of the incident, neighboring vessel owners set the boat adrift after observing smoke billowing from its windows. Unfortunately, winds blew the vessel from one part of the marina to another, resulting in significant damage to the marina's dock, other vessels and surrounding property. Claimants in the proceeding included the marina operator, which had asserted claims for damages related to dock repairs and vessel salvage costs. With no evidence proving the vessel owner had any knowledge of the cause of the fire, the marine withdrew its claims. With the Court's exoneration order, the vessel owner petitioner has been found free of liability, and the action is now closed.
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Publications
The Cannabis Industry’s “Big Tobacco” Moment: What Insurers Need to Know About Murray v. Cresco
A massive 320-page class action complaint filed on May 4, 2026, in the U.S. District Court for the Northern District of Illinois has the attention of the cannabis sector. The insurance professionals who underwrite it should also be paying close attention. The case, Murray et al. v. Cresco Labs Inc. et al., represents the most ambitious legal assault yet on the marketing practices of major cannabis multistate operators (MSOs). The complaint makes explicit comparisons to the litigation playbook against “Big Tobacco” in the 1990s. With claims across 12 states and spanning allegations of Racketeer Influenced and Corrupt Organizations (RICO), consumer fraud, breach of warranty, negligent misrepresentation and more, this lawsuit signals a new era of litigation risk that could reshape how cannabis companies are underwritten and insured. What the Case is About Murray v. Cresco is a consumer class action brought by more than 40 named plaintiffs on behalf of recreational cannabis purchasers in Arizona, Connecticut, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Rhode Island, and Virginia. The defendants are three of the nation's largest cannabis MSOs: Cresco Labs Inc., Green Thumb Industries Inc. and Verano Holdings Corp. Each defendant is a vertically-integrated cannabis operator, meaning they cultivate, process, distribute and sell cannabis products under a portfolio of consumer-facing brands. Cresco sells under brands like Sunnyside, High Supply, FloraCal, and Wonder Wellness; Green Thumb uses brands like Rhythm, Dogwalkers, Good Green and Rise; Verano operates under Zen Leaf, Encore Edibles, BITS and Cabbage Club, among others. The case was filed under the Class Action Fairness Act (CAFA) in the Northern District of Illinois, the location of the defendants’ principal places of business. The complaint explicitly carves out claims related to physician-prescribed medical cannabis, focusing solely on adult-use purchases. A companion case targeting Curaleaf Holdings was filed the same day in the District of Connecticut. The Central Narrative Plaintiffs allege that the defendants knew, or should have known, that cannabis products pose serious mental and physical health risks, yet chose to market those same products as safe, therapeutic, and even medicinal. The complaint paints a picture of an industry that borrowed from Big Tobacco's playbook, allegedly sponsoring less-than-rigorous research to generate consumer friendly health claims while burying the mounting scientific evidence of harm. As the complaint puts it, the defendants “deceptively marketed cannabis as medicine capable of alleviating or treating the very mental health disorders” they “knew or should have known were caused or exacerbated by the use of their products.” The Liability Theories The core liability theory is the federal RICO cause of action. The plaintiffs allege that the defendants operated an “enterprise” engaged in a pattern of racketeering activity, including dealing in controlled substances illegal under federal law, mail fraud, wire fraud, and monetary transactions in criminally derived property. The RICO claim is significant because it opens the door to potential treble damages, meaning any actual damages could be tripled, plus attorneys' fees. The U.S. Supreme Court's 2025 decision in Medical Marijuana, Inc. v. Horn confirmed that RICO can apply to economic harms tied to mislabeled cannabis products. The complaint also asserts state-specific consumer protection claims in all 12 states where the representative plaintiffs reside. These include violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, the Michigan Consumer Protection Act, New York's General Business Law Section 349, the Ohio Consumer Sales Practices Act, and analogous statutes in each remaining jurisdiction. Across all states, plaintiffs argued that defendants made affirmative misrepresentations about health benefits while concealing known risks, inducing consumers to purchase products they otherwise would not have bought, or to overpay for them. The complaint further alleges breach of express and implied warranties under each state’s version of the Uniform Commercial Code. By representing their products as treating depression, anxiety, PTSD, pain and other conditions, defendants allegedly created and violated express warranties that the products would perform as described. Implied warranty claims assert that cannabis products marketed as wellness aids were not “fit for the ordinary purposes for which such goods are used.” Finally, negligent misrepresentation claims target the defendants’ alleged failure to exercise reasonable care in communicating health information to consumers. The Health Science at the Heart of the Case The factual backbone of the complaint runs over a hundred pages of citations to various scientific studies and papers. The plaintiffs reference research alleging connections of cannabis use to psychosis, schizophrenia, bipolar disorder, depression, suicidal ideation, and anxiety. The complaint cites a 2025 study finding that states with open recreational dispensaries experienced a 12 percent increase in admissions to state mental health facilities for psychotic disorders. A 2021 Danish study is also referenced for its finding that schizophrenia cases associated with cannabis use disorder increased 300 percent to 400 percent over 20 years as potency doubled. The complaint also cites cardiovascular studies, including a 2025 meta-analysis that reportedly found cannabis use doubled the risk of cardiovascular death and increased stroke risk by 20 percent. Another cited study estimates the odds of heart attack among cannabis users at more than six times higher than non-users. The complaint also highlights prenatal risks, citing a 2025 review linking cannabis use during pregnancy to increased risk of miscarriage, stillbirth, and preterm birth. Cannabis hyperemesis syndrome (CHS) and cannabis use disorder (CUD) are include in the complaint’s litany of health harms. Focus on Industry Awareness The complaint emphasizes that these health risks are not new discoveries. It alleges that the defendants had “actual and constructive knowledge” of these dangers, derived from years of publicly available peer-reviewed studies and governmental advisories, yet “failed to adequately warn their customers.” Instead, plaintiffs contend the defendants went in the opposite direction by marketing cannabis as a remedy for the conditions it allegedly makes worse. The Playbook is Growing The lead attorney in Murray v. Cresco, Patrick Kenneally, is a former Illinois county prosecutor with a track record of taking on cannabis companies. In 2023, he compelled dispensaries in McHenry County, Illinois to post in-store warnings about cannabis-related mental health risks, a first in the country, and to fund a billboard campaign linking cannabis to suicide and schizophrenia. An earlier, similar lawsuit against Verano was dismissed in March 2026, but the new complaint appears broader and more detailed. A spokesperson for Verano told MJBizDaily that the suit “mirrors claims that have been rejected by courts in similar legal actions against multistate operators in the industry earlier this year.” Whether the 320-page complaint overcomes those defenses remains to be seen. Rescheduling Adds Fuel The timing is notable. On April 23, 2026, the Department of Justice issued an order rescheduling state-licensed medical marijuana and FDA-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). Greater federal legitimacy may bring greater legal exposure. Rescheduling is likely to expand market access and raise expectations for product safety and accurate labeling, making negligence and consumer protection claims more likely for compliance lapses. Canada Offers a Preview Canada legalized recreational cannabis nationally in 2018, and its litigation experience since then is instructive. The country has seen a wave of product liability class actions, including Downton v. Organigram Holdings, the first certified cannabis product liability class action in Canada, involving pesticide contamination. Proposed actions have also targeted major Canadian producers over inadequate risk disclosures related to CHS. The pattern is consistent with what now appears to be emerging in the United States – consumer litigation follows the market opening up. Why This Matters for Cannabis Insurers For insurance professionals, Murray v. Cresco crystallizes several risks that the industry has long discussed in the abstract. The case represents a concrete, large-scale litigation event with the potential for enormous exposure. The RICO claim alone, with its treble-damage multiplier, could transform a significant jury verdict into a catastrophic one. Class certification across 12 states would dramatically multiply the defendant pool and the aggregate damages. The underwriting on cannabis product liability has, to date, focused on potential contamination, mislabeling, and the occasional exposure or ingestion-based bodily injury claim. Murray v. Cresco, however, introduces a different species of claim, one rooted in marketing conduct rather than product defect in the traditional sense. Currently, the insurance industry is largely insulated from large consumer class actions like Murray v. Cresco. Many cannabis policies contain broad health-hazard exclusions, which could deny coverage for claims involving specified adverse health effects from cannabis products. Class action exclusions are common, as are exclusions for statutory penalties like treble damages under RICO and state consumer protection awards. RICO-based claims are also vulnerable to criminal-acts exclusions or specific carve-outs for racketeering-related conduct. Coverage Disputes on the Horizon Notwithstanding this insulation, insurers should expect that defendants in cases like Murray will tender claims under their commercial general liability (CGL) policies, products completed operations policies, directors and officers (D&O) policies, and any specialty cannabis coverage they hold. The question of whether deceptive marketing and failure-to-warn allegations fall within a products-completed operations hazard, an advertising injury provision, or some other coverage grant will likely be fiercely contested. What Underwriters Should be Asking Going forward, underwriters writing cannabis risks should scrutinize their insureds' marketing practices with the same focus they currently bring to product testing and labeling. Documented testing integrity, warning protocols, supply-chain oversight, and recall history are all important along with marketing discipline. Policies should be reviewed for RICO and state consumer statute exposure. Underwriters should pay attention to emerging scientific studies on the health effect of cannabis use. Insureds that continue to make unsupported health claims, the kind at the center of Murray v. Cresco, present a different risk profile than those that keep their marketing factual and scientifically supported. Conclusion Murray v. Cresco may or may not succeed on the merits. Defendants will raise formidable challenges, including preemption arguments, standing issues, the difficulty of class certification across a dozen state consumer-protection regimes, causation defenses and the still-evolving science around cannabis and health. But the complaint’s sheer scale, its RICO backbone, and its explicit comparisons to Big Tobacco litigation signal that the era of treating cannabis product liability as a hypothetical future risk is over. For insurers and their cannabis policyholders, the takeaway is practical and immediate. Marketing claims are now a front-line litigation target, and the industry needs to treat them accordingly. Risk-mitigation programs should include compliance audits of all consumer-facing health claims, robust product warnings modeled on the warnings that accompany over-the-counter medical products, and honest internal assessments of what the science supports. Meanwhile, insurers should be reviewing policy language to understand their own exposure in the event that lawsuits like this one multiply. This article was published in the May 18, 2026, posting of Insurance Journal.
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News
InvestmentNews Quotes Alexander on New York’s Push for Transparency in Litigation Finance Amid Growing Advisor Interest in the Asset Class
Maryan Alexander (Partner-Baltimore, MD) is quoted in the article “RIAs Explore Litigation Finance Via SEI Access,” appearing in the May 15, 2026, posting of InvestmentNews. The article discusses how alternative investment platforms are increasingly offering litigation finance opportunities to financial advisors, enabling investors to potentially profit from courtroom outcomes in lawsuits rather than relying on traditional market performance. While proponents say the asset class can deliver strong, non-market-correlated returns, many registered investment advisors remain cautious because outcomes depend heavily on legal proceedings, creating uncertainty and valuation challenges. The article also highlights growing regulatory scrutiny, particularly in New York, where new legislation aims to increase transparency and consumer protections in litigation funding arrangements. Maryan notes, “New York has moved litigation financing from the shadows to a supervised, disclosure-heavy regime, while empowering courts to probe funding when it bears on motive or misconduct,” adding that “stakeholders should prepare for regulatory compliance and more nuanced discovery practice as these changes take hold.”
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Client Wins
Piatkowski and Morales Secure Summary Judgment on Behalf of Global Tech Firm
Kelsi Piatkowski (Partner-Houston, TX) and Angela Morales (Associate-Houston, TX) successfully defended their client in a suit arising from a motor vehicle accident, where multiple theories were alleged, including vicarious liability. The plaintiff advanced an increasingly utilized – but legally unrecognized – theory that cellphone application notifications sent to an independent contractor delivery driver transformed the relationship into one of employment. They also contended that the client owed a duty to prevent independent drivers from engaging in distracted driving. After extensive briefing and oral argument, including an argument that Texas law does not recognize a cause of action imposing tort liability on technology platforms for an independent driver’s decision to interact with a mobile device while driving, the Court granted our client’s motion for summary judgment. Indeed, the Court ordered all claims dismissed with prejudice.
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Events
Scope of Services: Cross-Disciplinary Perspectives for Claims Professionals
Kimberly Blair (Partner-Chicago, IL), Peter Catalanotti (Partner-San Francisco), Joseph Francoeur (Partner-New York, NY), and Alexandra Skarka (Associate-Philadelphia, PA) will present the Wilson Elser Forum webinar “Scope of Services: Cross-Disciplinary Perspectives for Claims Professionals” on June 8, 2026. The session provides a cross-disciplinary overview of how scope of services issues arise across design and construction, legal, brokerage, and real estate professions. Presenters will address how engagement agreements define and limit the scope of professional services, the risks of scope creep and undocumented service expansion, defenses available based on scope limitations, and evidentiary sources and trial strategies for scope disputes. Also covered are deposition tactics specific to scope of services claims, underwriting red flags and claims investigation best practices, third-party liability exposure when non-clients rely on an insured’s work product, and potential subrogation opportunities.
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Events
Labor & Supply Chain Pressures: ADR's Role in Managing Workforce and Material Disruptions
Denise Motta (Of Counsel-Louisville) will be a panelist at the 2026 AAA-ICDR Construction Conference in Marina Del Rey on June 4, 2026. She will join an expert panel of arbitrators/mediators and in-house counsel to discuss the implications of labor and supply chain issues increasingly impacting the construction industry. Denise and her fellow panelists will offer insights into navigating these claims and examine how early mediation, arbitration, and dispute review boards may help parties reach resolutions before disputes escalate.
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Events
Pace Women’s Justice Center Fundraiser: “Cocktails for a Cause”
Jacqueline Hattar (Partner-White Plains, NY) will co-host the Pace Women's Justice Center (PWJC) "Cocktails for a Cause" fundraiser on May 28, 2026, at the Barley Beach House in Rye, New York. The event supports the PWJC's commitment to increasing access to justice by providing free legal services to victims of domestic violence, sexual assault, and elder abuse. The funds raised will support the PWJC’s critical services for survivors of abuse. Jackie is a long-time PWJC Advisory Board member and a past recipient of the Center's “Making A Difference” award. She also serves on the Board of Visitors at the Elisabeth Haub School of Law at Pace University. The PWJC, housed at the Elisabeth Haub School of Law in White Plains, New York, is a self-funded, nonprofit legal center that falls under Pace University's 501(c)(3) status. The Center conducts or participates in more than 140 training and outreach events annually, providing free legal services to some 3,500 survivors of domestic violence, sexual assault, and elder abuse. Serving Westchester and Putnam Counties, the PWJC's mission is to pursue justice for victims and prevent abuse by offering quality legal services, fostering community partnerships, and promoting education and awareness. 
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Publications
An Update on Virginia’s Medical Malpractice Reporting Bill
A prior analysis examined the Virginia legislature’s rejection of a sweeping proposal to overhaul the state’s medical malpractice damages cap. That proposal would have doubled the cap from $3 million to $6 million, allowed prejudgment interest, expanded the statute of limitations, and imposed new insurance requirements on nursing homes. Instead, the legislature passed a narrower, reconciled version of Senate Bill 536 that left the existing damages cap schedule under Virginia Code § 8.01-581.15 untouched but created a new reporting framework requiring commercial insurers and self-insured hospitals to disclose detailed malpractice claims data to legislative leaders. At the time of publication, the reconciled bill had been sent to Governor Spanberger, who had until April 13 to sign, veto, or propose amendments.  Rather than sign or veto the reconciled bill, Governor Spanberger returned it to the legislature on April 12, 2026, with a set of proposed amendments that reshaped several key aspects of the reporting framework. On April 22, the amended reconciled bill was enacted, with an effective date of July 1, 2026. Bottom Line for Virginia Healthcare Entities The medical malpractice damages cap remains unchanged, but a new reporting law takes effect on July 1, 2026, with an initial disclosure deadline of October 1, 2026. The governor’s amendments broadened who must report, redirected all disclosures through the Bureau of Insurance (the “Bureau”), strengthened confidentiality protections, and eliminated the most sensitive reporting metric. However, it also expanded the scope of the law beyond hospitals to reach a wider range of healthcare entities.  Key Changes Under the Enacted Law Expanded Scope of Reporting Entities Unlike the original bill that applied to only hospitals or health systems licensed under Virginia Code § 32.1-123 that self insure or maintain retained-risk arrangements, the enacted law applies to every “medical care facility, as defined in § 32.1-3, or other health care provider” that maintains self insurance, captive insurance, risk retention arrangements, or other retained financial risk. As a result, Virginia healthcare entities that did not consider themselves subject to the original bill should assess whether they now fall within the enacted law’s broader reach. Elimination of the Revenue-Percentage Metric The original bill required self-insured hospitals to disclose total malpractice liability expenditures expressed as a percentage of the hospital’s total patient service revenue. The enacted law eliminates this requirement, leaving three categories of disclosure: (1) the number of covered physicians and providers, (2) claims activity, and (3) malpractice expenditures. This is a meaningful change. The revenue-percentage metric would have provided a uniquely revealing window into each hospital’s financial exposure relative to its operations. Anti-Duplication Provision The enacted law adds a practical provision to prevent duplicative reporting: a healthcare provider is not required to report information that has already been included in a report submitted by the entity providing its self insurance, captive insurance, or risk retention coverage. In other words, if a hospital system’s captive insurer files the required disclosures, individual hospitals covered by that program need not file separate, duplicative reports. Hospitals should confirm with their insurers or risk retention groups whether coverage-level reporting will satisfy their individual obligations. New Insurer Disclosure Requirement For commercial insurers, the enacted law adds a requirement not found in the original bill: insurers must now disclose the identity of the named insureds under their medical malpractice policies. Hospitals insured by commercial carriers should be aware that their identity as a named insured will be part of the insurer’s disclosure to the Bureau. Centralization Through the Bureau of Insurance Perhaps the most structurally significant change involves where disclosures are submitted and how they are processed. The original bill directed all reporting to the chairs and ranking minority members of the House and Senate Committees for Courts of Justice, with the Clerks of each chamber making the information publicly available on the General Assembly’s website. The enacted law redirects this entire process through the State Corporation Commission’s Bureau. Disclosures must now be submitted to the Bureau in a uniform format that it prescribes that is consistent with the format of claim-reporting requirements already established under Virginia Code § 38.2-2228.2. The Bureau is responsible for compiling and analyzing the data, preparing an aggregate summary report, and submitting that report to the legislative committee leaders. Importantly, the Bureau’s aggregate report (not the raw disclosures) is what will be made publicly available on the General Assembly’s website. This is a significant structural improvement and reduces the risk of raw data being taken out of context or used selectively in public debate. Comparison by Size, Region, and Facility Type The enacted law directs the Bureau to present data, to the extent practicable, “in a manner that allows comparison among healthcare providers by size, region, or type of facility,” using anonymized or de-identified formats. While the law prohibits identifying any individual provider, hospitals should be aware that comparisons by size, region, or facility type could narrow the field enough to make identification possible as a practical matter. This provision warrants careful attention when preparing disclosures. Strengthened Confidentiality Protections The original bill stated broadly that disclosures would be confidential and exempt from the Virginia Freedom of Information Act except in aggregate form. The enacted law replaces this with a more detailed and protective mechanism. Reporting entities may designate specific data as confidential proprietary information upon submission, provided they: (i) invoke the exclusion in writing, (ii) identify the protected material, and (iii) state the reason protection is necessary. Information properly designated as confidential will be protected from subpoena responses and public inspection. Officer Certification Requirement Disclosures must be “certified as accurate and complete by an officer of the reporting entity.” This places personal responsibility on a hospital officer for the accuracy of the filing.  Extended Initial Deadline The original bill set the first disclosure deadline as September 1, 2026. The enacted law extends this to October 1, 2026. Subsequent annual disclosures remain due on or before March 31 of each year for the preceding calendar year. Verdicts Exceeding the Cap Both the original and enacted versions require all reporting entities to submit a list of verdicts exceeding the statutory cap. Each entry must include the verdict amount, the amount recoverable after application of the cap, and the year the cause of action accrued. No personally-identifiable information may be disclosed. This provision is clearly designed to build a public record demonstrating the gap between what juries award and what plaintiffs can recover. Automatic Sunset Both versions contain the same expiration mechanism: the reporting requirements expire upon the effective date of any future legislation establishing a new limitation on recovery for medical malpractice actions. This confirms the legislative intent that the reporting framework is a temporary, data-gathering tool designed to inform future changes to the cap. Strategic Implications Virginia’s medical malpractice damages cap is intact but is under active review, and the data collected under this new law will fuel the next round of legislative efforts to increase it. With the October 1, 2026 initial deadline approaching, Virginia hospitals and healthcare entities should consider taking the following steps: 1) determine whether an institution falls within the enacted law’s expanded definition of “medical care facility” or “other healthcare provider;” 2) coordinate the production of the required materials with insurers or risk retention groups; 3) compile the necessary information for disclosure; 4) identify and designate confidential proprietary information; 5) designate a certifying officer; 6) monitor the Bureau’s prescribed format; and 7) prepare for future debates on raising the medical malpractice damages cap.
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News
Wilson Elser Recognized Among Top Law Firms for Associate Satisfaction in 2026 BTI Report
BTI Consulting Group recently named Wilson Elser among the top firms for associate satisfaction in its “BTI Associate Satisfaction A-Listers 2026” report. Based on more than 5,000 associate responses, BTI recognized 189 law firms for fostering strong associate job satisfaction, with Wilson Elser ranking among the top 36 firms consistently recognized for creating a positive and supportive work environment. The report found that associates increasingly value factors beyond compensation, including meaningful training, mentorship, clear career development opportunities, strong job satisfaction, and active partner investment in associate success. BTI also highlighted the importance of targeted support for women associates and firms’ demonstrated commitment to long-term career growth. The recognition underscores Wilson Elser’s continued focus on cultivating a workplace where associates feel supported, engaged, and positioned for professional success in an increasingly demanding legal industry.
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Publications
PLUS Blog Features Kelly Article on How New Laws Are Rewriting Risk for Manufactured Housing
John Kelly (Partner-New York, NY) authored “From Personal to Real Property: How New Laws Are Rewriting Risk for Manufactured Housing,” posted on the May 14, 2026, PLUS Blog. In the article, John discusses how recent state and proposed federal legislation might reshape the legal and insurance landscape for manufactured housing. He explains that New York’s Land-Home Property Act now allows certain manufactured homes to be reclassified from personal property to real property if they meet requirements such as permanent foundations, land ownership, or long-term lease arrangements. This change could ease financing and tax burdens for homeowners while aligning these homes more closely with traditional single-family residences. The article also discusses proposed federal legislation that would eliminate the longstanding requirement that manufactured homes be built on permanent steel chassis. John notes that removing this mandate could reduce construction costs, encourage permanent placement of homes and expand affordable housing opportunities, particularly in urban areas.
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Client Wins
Felder and Allin Prevail in Suspected Marine Li-Ion Battery Fire in Utah Federal Court
Otis Felder (Partner-Los Angeles, CA) and Taylor Allin (Partner-Phoenix, AZ) combined to obtain a judgment in favor of a boat owner before the U.S. District Court for Utah. The Salt Lake federal court entered judgment in exoneration of the owner in connection with a fire that occurred on October 26, 2023, on Lake Powell, causing damage to the vessel along with the surrounding dock infrastructure and other vessels. It was suspected that the fire was caused by lithium-ion batteries. While no one was on board the vessel at the time of the incident, neighboring vessel owners set the boat adrift after observing smoke billowing from its windows. Unfortunately, winds blew the vessel from one part of the marina to another, resulting in significant damage to the marina's dock, other vessels and surrounding property. Claimants in the proceeding included the marina operator, which had asserted claims for damages related to dock repairs and vessel salvage costs. With no evidence proving the vessel owner had any knowledge of the cause of the fire, the marine withdrew its claims. With the Court's exoneration order, the vessel owner petitioner has been found free of liability, and the action is now closed.
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Publications
The Cannabis Industry’s “Big Tobacco” Moment: What Insurers Need to Know About Murray v. Cresco
A massive 320-page class action complaint filed on May 4, 2026, in the U.S. District Court for the Northern District of Illinois has the attention of the cannabis sector. The insurance professionals who underwrite it should also be paying close attention. The case, Murray et al. v. Cresco Labs Inc. et al., represents the most ambitious legal assault yet on the marketing practices of major cannabis multistate operators (MSOs). The complaint makes explicit comparisons to the litigation playbook against “Big Tobacco” in the 1990s. With claims across 12 states and spanning allegations of Racketeer Influenced and Corrupt Organizations (RICO), consumer fraud, breach of warranty, negligent misrepresentation and more, this lawsuit signals a new era of litigation risk that could reshape how cannabis companies are underwritten and insured. What the Case is About Murray v. Cresco is a consumer class action brought by more than 40 named plaintiffs on behalf of recreational cannabis purchasers in Arizona, Connecticut, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Rhode Island, and Virginia. The defendants are three of the nation's largest cannabis MSOs: Cresco Labs Inc., Green Thumb Industries Inc. and Verano Holdings Corp. Each defendant is a vertically-integrated cannabis operator, meaning they cultivate, process, distribute and sell cannabis products under a portfolio of consumer-facing brands. Cresco sells under brands like Sunnyside, High Supply, FloraCal, and Wonder Wellness; Green Thumb uses brands like Rhythm, Dogwalkers, Good Green and Rise; Verano operates under Zen Leaf, Encore Edibles, BITS and Cabbage Club, among others. The case was filed under the Class Action Fairness Act (CAFA) in the Northern District of Illinois, the location of the defendants’ principal places of business. The complaint explicitly carves out claims related to physician-prescribed medical cannabis, focusing solely on adult-use purchases. A companion case targeting Curaleaf Holdings was filed the same day in the District of Connecticut. The Central Narrative Plaintiffs allege that the defendants knew, or should have known, that cannabis products pose serious mental and physical health risks, yet chose to market those same products as safe, therapeutic, and even medicinal. The complaint paints a picture of an industry that borrowed from Big Tobacco's playbook, allegedly sponsoring less-than-rigorous research to generate consumer friendly health claims while burying the mounting scientific evidence of harm. As the complaint puts it, the defendants “deceptively marketed cannabis as medicine capable of alleviating or treating the very mental health disorders” they “knew or should have known were caused or exacerbated by the use of their products.” The Liability Theories The core liability theory is the federal RICO cause of action. The plaintiffs allege that the defendants operated an “enterprise” engaged in a pattern of racketeering activity, including dealing in controlled substances illegal under federal law, mail fraud, wire fraud, and monetary transactions in criminally derived property. The RICO claim is significant because it opens the door to potential treble damages, meaning any actual damages could be tripled, plus attorneys' fees. The U.S. Supreme Court's 2025 decision in Medical Marijuana, Inc. v. Horn confirmed that RICO can apply to economic harms tied to mislabeled cannabis products. The complaint also asserts state-specific consumer protection claims in all 12 states where the representative plaintiffs reside. These include violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, the Michigan Consumer Protection Act, New York's General Business Law Section 349, the Ohio Consumer Sales Practices Act, and analogous statutes in each remaining jurisdiction. Across all states, plaintiffs argued that defendants made affirmative misrepresentations about health benefits while concealing known risks, inducing consumers to purchase products they otherwise would not have bought, or to overpay for them. The complaint further alleges breach of express and implied warranties under each state’s version of the Uniform Commercial Code. By representing their products as treating depression, anxiety, PTSD, pain and other conditions, defendants allegedly created and violated express warranties that the products would perform as described. Implied warranty claims assert that cannabis products marketed as wellness aids were not “fit for the ordinary purposes for which such goods are used.” Finally, negligent misrepresentation claims target the defendants’ alleged failure to exercise reasonable care in communicating health information to consumers. The Health Science at the Heart of the Case The factual backbone of the complaint runs over a hundred pages of citations to various scientific studies and papers. The plaintiffs reference research alleging connections of cannabis use to psychosis, schizophrenia, bipolar disorder, depression, suicidal ideation, and anxiety. The complaint cites a 2025 study finding that states with open recreational dispensaries experienced a 12 percent increase in admissions to state mental health facilities for psychotic disorders. A 2021 Danish study is also referenced for its finding that schizophrenia cases associated with cannabis use disorder increased 300 percent to 400 percent over 20 years as potency doubled. The complaint also cites cardiovascular studies, including a 2025 meta-analysis that reportedly found cannabis use doubled the risk of cardiovascular death and increased stroke risk by 20 percent. Another cited study estimates the odds of heart attack among cannabis users at more than six times higher than non-users. The complaint also highlights prenatal risks, citing a 2025 review linking cannabis use during pregnancy to increased risk of miscarriage, stillbirth, and preterm birth. Cannabis hyperemesis syndrome (CHS) and cannabis use disorder (CUD) are include in the complaint’s litany of health harms. Focus on Industry Awareness The complaint emphasizes that these health risks are not new discoveries. It alleges that the defendants had “actual and constructive knowledge” of these dangers, derived from years of publicly available peer-reviewed studies and governmental advisories, yet “failed to adequately warn their customers.” Instead, plaintiffs contend the defendants went in the opposite direction by marketing cannabis as a remedy for the conditions it allegedly makes worse. The Playbook is Growing The lead attorney in Murray v. Cresco, Patrick Kenneally, is a former Illinois county prosecutor with a track record of taking on cannabis companies. In 2023, he compelled dispensaries in McHenry County, Illinois to post in-store warnings about cannabis-related mental health risks, a first in the country, and to fund a billboard campaign linking cannabis to suicide and schizophrenia. An earlier, similar lawsuit against Verano was dismissed in March 2026, but the new complaint appears broader and more detailed. A spokesperson for Verano told MJBizDaily that the suit “mirrors claims that have been rejected by courts in similar legal actions against multistate operators in the industry earlier this year.” Whether the 320-page complaint overcomes those defenses remains to be seen. Rescheduling Adds Fuel The timing is notable. On April 23, 2026, the Department of Justice issued an order rescheduling state-licensed medical marijuana and FDA-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). Greater federal legitimacy may bring greater legal exposure. Rescheduling is likely to expand market access and raise expectations for product safety and accurate labeling, making negligence and consumer protection claims more likely for compliance lapses. Canada Offers a Preview Canada legalized recreational cannabis nationally in 2018, and its litigation experience since then is instructive. The country has seen a wave of product liability class actions, including Downton v. Organigram Holdings, the first certified cannabis product liability class action in Canada, involving pesticide contamination. Proposed actions have also targeted major Canadian producers over inadequate risk disclosures related to CHS. The pattern is consistent with what now appears to be emerging in the United States – consumer litigation follows the market opening up. Why This Matters for Cannabis Insurers For insurance professionals, Murray v. Cresco crystallizes several risks that the industry has long discussed in the abstract. The case represents a concrete, large-scale litigation event with the potential for enormous exposure. The RICO claim alone, with its treble-damage multiplier, could transform a significant jury verdict into a catastrophic one. Class certification across 12 states would dramatically multiply the defendant pool and the aggregate damages. The underwriting on cannabis product liability has, to date, focused on potential contamination, mislabeling, and the occasional exposure or ingestion-based bodily injury claim. Murray v. Cresco, however, introduces a different species of claim, one rooted in marketing conduct rather than product defect in the traditional sense. Currently, the insurance industry is largely insulated from large consumer class actions like Murray v. Cresco. Many cannabis policies contain broad health-hazard exclusions, which could deny coverage for claims involving specified adverse health effects from cannabis products. Class action exclusions are common, as are exclusions for statutory penalties like treble damages under RICO and state consumer protection awards. RICO-based claims are also vulnerable to criminal-acts exclusions or specific carve-outs for racketeering-related conduct. Coverage Disputes on the Horizon Notwithstanding this insulation, insurers should expect that defendants in cases like Murray will tender claims under their commercial general liability (CGL) policies, products completed operations policies, directors and officers (D&O) policies, and any specialty cannabis coverage they hold. The question of whether deceptive marketing and failure-to-warn allegations fall within a products-completed operations hazard, an advertising injury provision, or some other coverage grant will likely be fiercely contested. What Underwriters Should be Asking Going forward, underwriters writing cannabis risks should scrutinize their insureds' marketing practices with the same focus they currently bring to product testing and labeling. Documented testing integrity, warning protocols, supply-chain oversight, and recall history are all important along with marketing discipline. Policies should be reviewed for RICO and state consumer statute exposure. Underwriters should pay attention to emerging scientific studies on the health effect of cannabis use. Insureds that continue to make unsupported health claims, the kind at the center of Murray v. Cresco, present a different risk profile than those that keep their marketing factual and scientifically supported. Conclusion Murray v. Cresco may or may not succeed on the merits. Defendants will raise formidable challenges, including preemption arguments, standing issues, the difficulty of class certification across a dozen state consumer-protection regimes, causation defenses and the still-evolving science around cannabis and health. But the complaint’s sheer scale, its RICO backbone, and its explicit comparisons to Big Tobacco litigation signal that the era of treating cannabis product liability as a hypothetical future risk is over. For insurers and their cannabis policyholders, the takeaway is practical and immediate. Marketing claims are now a front-line litigation target, and the industry needs to treat them accordingly. Risk-mitigation programs should include compliance audits of all consumer-facing health claims, robust product warnings modeled on the warnings that accompany over-the-counter medical products, and honest internal assessments of what the science supports. Meanwhile, insurers should be reviewing policy language to understand their own exposure in the event that lawsuits like this one multiply. This article was published in the May 18, 2026, posting of Insurance Journal.
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News
InvestmentNews Quotes Alexander on New York’s Push for Transparency in Litigation Finance Amid Growing Advisor Interest in the Asset Class
Maryan Alexander (Partner-Baltimore, MD) is quoted in the article “RIAs Explore Litigation Finance Via SEI Access,” appearing in the May 15, 2026, posting of InvestmentNews. The article discusses how alternative investment platforms are increasingly offering litigation finance opportunities to financial advisors, enabling investors to potentially profit from courtroom outcomes in lawsuits rather than relying on traditional market performance. While proponents say the asset class can deliver strong, non-market-correlated returns, many registered investment advisors remain cautious because outcomes depend heavily on legal proceedings, creating uncertainty and valuation challenges. The article also highlights growing regulatory scrutiny, particularly in New York, where new legislation aims to increase transparency and consumer protections in litigation funding arrangements. Maryan notes, “New York has moved litigation financing from the shadows to a supervised, disclosure-heavy regime, while empowering courts to probe funding when it bears on motive or misconduct,” adding that “stakeholders should prepare for regulatory compliance and more nuanced discovery practice as these changes take hold.”
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Client Wins
Piatkowski and Morales Secure Summary Judgment on Behalf of Global Tech Firm
Kelsi Piatkowski (Partner-Houston, TX) and Angela Morales (Associate-Houston, TX) successfully defended their client in a suit arising from a motor vehicle accident, where multiple theories were alleged, including vicarious liability. The plaintiff advanced an increasingly utilized – but legally unrecognized – theory that cellphone application notifications sent to an independent contractor delivery driver transformed the relationship into one of employment. They also contended that the client owed a duty to prevent independent drivers from engaging in distracted driving. After extensive briefing and oral argument, including an argument that Texas law does not recognize a cause of action imposing tort liability on technology platforms for an independent driver’s decision to interact with a mobile device while driving, the Court granted our client’s motion for summary judgment. Indeed, the Court ordered all claims dismissed with prejudice.
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Events
Scope of Services: Cross-Disciplinary Perspectives for Claims Professionals
Kimberly Blair (Partner-Chicago, IL), Peter Catalanotti (Partner-San Francisco), Joseph Francoeur (Partner-New York, NY), and Alexandra Skarka (Associate-Philadelphia, PA) will present the Wilson Elser Forum webinar “Scope of Services: Cross-Disciplinary Perspectives for Claims Professionals” on June 8, 2026. The session provides a cross-disciplinary overview of how scope of services issues arise across design and construction, legal, brokerage, and real estate professions. Presenters will address how engagement agreements define and limit the scope of professional services, the risks of scope creep and undocumented service expansion, defenses available based on scope limitations, and evidentiary sources and trial strategies for scope disputes. Also covered are deposition tactics specific to scope of services claims, underwriting red flags and claims investigation best practices, third-party liability exposure when non-clients rely on an insured’s work product, and potential subrogation opportunities.
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Events
Labor & Supply Chain Pressures: ADR's Role in Managing Workforce and Material Disruptions
Denise Motta (Of Counsel-Louisville) will be a panelist at the 2026 AAA-ICDR Construction Conference in Marina Del Rey on June 4, 2026. She will join an expert panel of arbitrators/mediators and in-house counsel to discuss the implications of labor and supply chain issues increasingly impacting the construction industry. Denise and her fellow panelists will offer insights into navigating these claims and examine how early mediation, arbitration, and dispute review boards may help parties reach resolutions before disputes escalate.
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Events
Pace Women’s Justice Center Fundraiser: “Cocktails for a Cause”
Jacqueline Hattar (Partner-White Plains, NY) will co-host the Pace Women's Justice Center (PWJC) "Cocktails for a Cause" fundraiser on May 28, 2026, at the Barley Beach House in Rye, New York. The event supports the PWJC's commitment to increasing access to justice by providing free legal services to victims of domestic violence, sexual assault, and elder abuse. The funds raised will support the PWJC’s critical services for survivors of abuse. Jackie is a long-time PWJC Advisory Board member and a past recipient of the Center's “Making A Difference” award. She also serves on the Board of Visitors at the Elisabeth Haub School of Law at Pace University. The PWJC, housed at the Elisabeth Haub School of Law in White Plains, New York, is a self-funded, nonprofit legal center that falls under Pace University's 501(c)(3) status. The Center conducts or participates in more than 140 training and outreach events annually, providing free legal services to some 3,500 survivors of domestic violence, sexual assault, and elder abuse. Serving Westchester and Putnam Counties, the PWJC's mission is to pursue justice for victims and prevent abuse by offering quality legal services, fostering community partnerships, and promoting education and awareness. 
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Publications
An Update on Virginia’s Medical Malpractice Reporting Bill
A prior analysis examined the Virginia legislature’s rejection of a sweeping proposal to overhaul the state’s medical malpractice damages cap. That proposal would have doubled the cap from $3 million to $6 million, allowed prejudgment interest, expanded the statute of limitations, and imposed new insurance requirements on nursing homes. Instead, the legislature passed a narrower, reconciled version of Senate Bill 536 that left the existing damages cap schedule under Virginia Code § 8.01-581.15 untouched but created a new reporting framework requiring commercial insurers and self-insured hospitals to disclose detailed malpractice claims data to legislative leaders. At the time of publication, the reconciled bill had been sent to Governor Spanberger, who had until April 13 to sign, veto, or propose amendments.  Rather than sign or veto the reconciled bill, Governor Spanberger returned it to the legislature on April 12, 2026, with a set of proposed amendments that reshaped several key aspects of the reporting framework. On April 22, the amended reconciled bill was enacted, with an effective date of July 1, 2026. Bottom Line for Virginia Healthcare Entities The medical malpractice damages cap remains unchanged, but a new reporting law takes effect on July 1, 2026, with an initial disclosure deadline of October 1, 2026. The governor’s amendments broadened who must report, redirected all disclosures through the Bureau of Insurance (the “Bureau”), strengthened confidentiality protections, and eliminated the most sensitive reporting metric. However, it also expanded the scope of the law beyond hospitals to reach a wider range of healthcare entities.  Key Changes Under the Enacted Law Expanded Scope of Reporting Entities Unlike the original bill that applied to only hospitals or health systems licensed under Virginia Code § 32.1-123 that self insure or maintain retained-risk arrangements, the enacted law applies to every “medical care facility, as defined in § 32.1-3, or other health care provider” that maintains self insurance, captive insurance, risk retention arrangements, or other retained financial risk. As a result, Virginia healthcare entities that did not consider themselves subject to the original bill should assess whether they now fall within the enacted law’s broader reach. Elimination of the Revenue-Percentage Metric The original bill required self-insured hospitals to disclose total malpractice liability expenditures expressed as a percentage of the hospital’s total patient service revenue. The enacted law eliminates this requirement, leaving three categories of disclosure: (1) the number of covered physicians and providers, (2) claims activity, and (3) malpractice expenditures. This is a meaningful change. The revenue-percentage metric would have provided a uniquely revealing window into each hospital’s financial exposure relative to its operations. Anti-Duplication Provision The enacted law adds a practical provision to prevent duplicative reporting: a healthcare provider is not required to report information that has already been included in a report submitted by the entity providing its self insurance, captive insurance, or risk retention coverage. In other words, if a hospital system’s captive insurer files the required disclosures, individual hospitals covered by that program need not file separate, duplicative reports. Hospitals should confirm with their insurers or risk retention groups whether coverage-level reporting will satisfy their individual obligations. New Insurer Disclosure Requirement For commercial insurers, the enacted law adds a requirement not found in the original bill: insurers must now disclose the identity of the named insureds under their medical malpractice policies. Hospitals insured by commercial carriers should be aware that their identity as a named insured will be part of the insurer’s disclosure to the Bureau. Centralization Through the Bureau of Insurance Perhaps the most structurally significant change involves where disclosures are submitted and how they are processed. The original bill directed all reporting to the chairs and ranking minority members of the House and Senate Committees for Courts of Justice, with the Clerks of each chamber making the information publicly available on the General Assembly’s website. The enacted law redirects this entire process through the State Corporation Commission’s Bureau. Disclosures must now be submitted to the Bureau in a uniform format that it prescribes that is consistent with the format of claim-reporting requirements already established under Virginia Code § 38.2-2228.2. The Bureau is responsible for compiling and analyzing the data, preparing an aggregate summary report, and submitting that report to the legislative committee leaders. Importantly, the Bureau’s aggregate report (not the raw disclosures) is what will be made publicly available on the General Assembly’s website. This is a significant structural improvement and reduces the risk of raw data being taken out of context or used selectively in public debate. Comparison by Size, Region, and Facility Type The enacted law directs the Bureau to present data, to the extent practicable, “in a manner that allows comparison among healthcare providers by size, region, or type of facility,” using anonymized or de-identified formats. While the law prohibits identifying any individual provider, hospitals should be aware that comparisons by size, region, or facility type could narrow the field enough to make identification possible as a practical matter. This provision warrants careful attention when preparing disclosures. Strengthened Confidentiality Protections The original bill stated broadly that disclosures would be confidential and exempt from the Virginia Freedom of Information Act except in aggregate form. The enacted law replaces this with a more detailed and protective mechanism. Reporting entities may designate specific data as confidential proprietary information upon submission, provided they: (i) invoke the exclusion in writing, (ii) identify the protected material, and (iii) state the reason protection is necessary. Information properly designated as confidential will be protected from subpoena responses and public inspection. Officer Certification Requirement Disclosures must be “certified as accurate and complete by an officer of the reporting entity.” This places personal responsibility on a hospital officer for the accuracy of the filing.  Extended Initial Deadline The original bill set the first disclosure deadline as September 1, 2026. The enacted law extends this to October 1, 2026. Subsequent annual disclosures remain due on or before March 31 of each year for the preceding calendar year. Verdicts Exceeding the Cap Both the original and enacted versions require all reporting entities to submit a list of verdicts exceeding the statutory cap. Each entry must include the verdict amount, the amount recoverable after application of the cap, and the year the cause of action accrued. No personally-identifiable information may be disclosed. This provision is clearly designed to build a public record demonstrating the gap between what juries award and what plaintiffs can recover. Automatic Sunset Both versions contain the same expiration mechanism: the reporting requirements expire upon the effective date of any future legislation establishing a new limitation on recovery for medical malpractice actions. This confirms the legislative intent that the reporting framework is a temporary, data-gathering tool designed to inform future changes to the cap. Strategic Implications Virginia’s medical malpractice damages cap is intact but is under active review, and the data collected under this new law will fuel the next round of legislative efforts to increase it. With the October 1, 2026 initial deadline approaching, Virginia hospitals and healthcare entities should consider taking the following steps: 1) determine whether an institution falls within the enacted law’s expanded definition of “medical care facility” or “other healthcare provider;” 2) coordinate the production of the required materials with insurers or risk retention groups; 3) compile the necessary information for disclosure; 4) identify and designate confidential proprietary information; 5) designate a certifying officer; 6) monitor the Bureau’s prescribed format; and 7) prepare for future debates on raising the medical malpractice damages cap.
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News
Wilson Elser Recognized Among Top Law Firms for Associate Satisfaction in 2026 BTI Report
BTI Consulting Group recently named Wilson Elser among the top firms for associate satisfaction in its “BTI Associate Satisfaction A-Listers 2026” report. Based on more than 5,000 associate responses, BTI recognized 189 law firms for fostering strong associate job satisfaction, with Wilson Elser ranking among the top 36 firms consistently recognized for creating a positive and supportive work environment. The report found that associates increasingly value factors beyond compensation, including meaningful training, mentorship, clear career development opportunities, strong job satisfaction, and active partner investment in associate success. BTI also highlighted the importance of targeted support for women associates and firms’ demonstrated commitment to long-term career growth. The recognition underscores Wilson Elser’s continued focus on cultivating a workplace where associates feel supported, engaged, and positioned for professional success in an increasingly demanding legal industry.
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Publications
PLUS Blog Features Kelly Article on How New Laws Are Rewriting Risk for Manufactured Housing
John Kelly (Partner-New York, NY) authored “From Personal to Real Property: How New Laws Are Rewriting Risk for Manufactured Housing,” posted on the May 14, 2026, PLUS Blog. In the article, John discusses how recent state and proposed federal legislation might reshape the legal and insurance landscape for manufactured housing. He explains that New York’s Land-Home Property Act now allows certain manufactured homes to be reclassified from personal property to real property if they meet requirements such as permanent foundations, land ownership, or long-term lease arrangements. This change could ease financing and tax burdens for homeowners while aligning these homes more closely with traditional single-family residences. The article also discusses proposed federal legislation that would eliminate the longstanding requirement that manufactured homes be built on permanent steel chassis. John notes that removing this mandate could reduce construction costs, encourage permanent placement of homes and expand affordable housing opportunities, particularly in urban areas.
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Client Wins
Felder and Allin Prevail in Suspected Marine Li-Ion Battery Fire in Utah Federal Court
Otis Felder (Partner-Los Angeles, CA) and Taylor Allin (Partner-Phoenix, AZ) combined to obtain a judgment in favor of a boat owner before the U.S. District Court for Utah. The Salt Lake federal court entered judgment in exoneration of the owner in connection with a fire that occurred on October 26, 2023, on Lake Powell, causing damage to the vessel along with the surrounding dock infrastructure and other vessels. It was suspected that the fire was caused by lithium-ion batteries. While no one was on board the vessel at the time of the incident, neighboring vessel owners set the boat adrift after observing smoke billowing from its windows. Unfortunately, winds blew the vessel from one part of the marina to another, resulting in significant damage to the marina's dock, other vessels and surrounding property. Claimants in the proceeding included the marina operator, which had asserted claims for damages related to dock repairs and vessel salvage costs. With no evidence proving the vessel owner had any knowledge of the cause of the fire, the marine withdrew its claims. With the Court's exoneration order, the vessel owner petitioner has been found free of liability, and the action is now closed.
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Publications
The Cannabis Industry’s “Big Tobacco” Moment: What Insurers Need to Know About Murray v. Cresco
A massive 320-page class action complaint filed on May 4, 2026, in the U.S. District Court for the Northern District of Illinois has the attention of the cannabis sector. The insurance professionals who underwrite it should also be paying close attention. The case, Murray et al. v. Cresco Labs Inc. et al., represents the most ambitious legal assault yet on the marketing practices of major cannabis multistate operators (MSOs). The complaint makes explicit comparisons to the litigation playbook against “Big Tobacco” in the 1990s. With claims across 12 states and spanning allegations of Racketeer Influenced and Corrupt Organizations (RICO), consumer fraud, breach of warranty, negligent misrepresentation and more, this lawsuit signals a new era of litigation risk that could reshape how cannabis companies are underwritten and insured. What the Case is About Murray v. Cresco is a consumer class action brought by more than 40 named plaintiffs on behalf of recreational cannabis purchasers in Arizona, Connecticut, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Rhode Island, and Virginia. The defendants are three of the nation's largest cannabis MSOs: Cresco Labs Inc., Green Thumb Industries Inc. and Verano Holdings Corp. Each defendant is a vertically-integrated cannabis operator, meaning they cultivate, process, distribute and sell cannabis products under a portfolio of consumer-facing brands. Cresco sells under brands like Sunnyside, High Supply, FloraCal, and Wonder Wellness; Green Thumb uses brands like Rhythm, Dogwalkers, Good Green and Rise; Verano operates under Zen Leaf, Encore Edibles, BITS and Cabbage Club, among others. The case was filed under the Class Action Fairness Act (CAFA) in the Northern District of Illinois, the location of the defendants’ principal places of business. The complaint explicitly carves out claims related to physician-prescribed medical cannabis, focusing solely on adult-use purchases. A companion case targeting Curaleaf Holdings was filed the same day in the District of Connecticut. The Central Narrative Plaintiffs allege that the defendants knew, or should have known, that cannabis products pose serious mental and physical health risks, yet chose to market those same products as safe, therapeutic, and even medicinal. The complaint paints a picture of an industry that borrowed from Big Tobacco's playbook, allegedly sponsoring less-than-rigorous research to generate consumer friendly health claims while burying the mounting scientific evidence of harm. As the complaint puts it, the defendants “deceptively marketed cannabis as medicine capable of alleviating or treating the very mental health disorders” they “knew or should have known were caused or exacerbated by the use of their products.” The Liability Theories The core liability theory is the federal RICO cause of action. The plaintiffs allege that the defendants operated an “enterprise” engaged in a pattern of racketeering activity, including dealing in controlled substances illegal under federal law, mail fraud, wire fraud, and monetary transactions in criminally derived property. The RICO claim is significant because it opens the door to potential treble damages, meaning any actual damages could be tripled, plus attorneys' fees. The U.S. Supreme Court's 2025 decision in Medical Marijuana, Inc. v. Horn confirmed that RICO can apply to economic harms tied to mislabeled cannabis products. The complaint also asserts state-specific consumer protection claims in all 12 states where the representative plaintiffs reside. These include violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, the Michigan Consumer Protection Act, New York's General Business Law Section 349, the Ohio Consumer Sales Practices Act, and analogous statutes in each remaining jurisdiction. Across all states, plaintiffs argued that defendants made affirmative misrepresentations about health benefits while concealing known risks, inducing consumers to purchase products they otherwise would not have bought, or to overpay for them. The complaint further alleges breach of express and implied warranties under each state’s version of the Uniform Commercial Code. By representing their products as treating depression, anxiety, PTSD, pain and other conditions, defendants allegedly created and violated express warranties that the products would perform as described. Implied warranty claims assert that cannabis products marketed as wellness aids were not “fit for the ordinary purposes for which such goods are used.” Finally, negligent misrepresentation claims target the defendants’ alleged failure to exercise reasonable care in communicating health information to consumers. The Health Science at the Heart of the Case The factual backbone of the complaint runs over a hundred pages of citations to various scientific studies and papers. The plaintiffs reference research alleging connections of cannabis use to psychosis, schizophrenia, bipolar disorder, depression, suicidal ideation, and anxiety. The complaint cites a 2025 study finding that states with open recreational dispensaries experienced a 12 percent increase in admissions to state mental health facilities for psychotic disorders. A 2021 Danish study is also referenced for its finding that schizophrenia cases associated with cannabis use disorder increased 300 percent to 400 percent over 20 years as potency doubled. The complaint also cites cardiovascular studies, including a 2025 meta-analysis that reportedly found cannabis use doubled the risk of cardiovascular death and increased stroke risk by 20 percent. Another cited study estimates the odds of heart attack among cannabis users at more than six times higher than non-users. The complaint also highlights prenatal risks, citing a 2025 review linking cannabis use during pregnancy to increased risk of miscarriage, stillbirth, and preterm birth. Cannabis hyperemesis syndrome (CHS) and cannabis use disorder (CUD) are include in the complaint’s litany of health harms. Focus on Industry Awareness The complaint emphasizes that these health risks are not new discoveries. It alleges that the defendants had “actual and constructive knowledge” of these dangers, derived from years of publicly available peer-reviewed studies and governmental advisories, yet “failed to adequately warn their customers.” Instead, plaintiffs contend the defendants went in the opposite direction by marketing cannabis as a remedy for the conditions it allegedly makes worse. The Playbook is Growing The lead attorney in Murray v. Cresco, Patrick Kenneally, is a former Illinois county prosecutor with a track record of taking on cannabis companies. In 2023, he compelled dispensaries in McHenry County, Illinois to post in-store warnings about cannabis-related mental health risks, a first in the country, and to fund a billboard campaign linking cannabis to suicide and schizophrenia. An earlier, similar lawsuit against Verano was dismissed in March 2026, but the new complaint appears broader and more detailed. A spokesperson for Verano told MJBizDaily that the suit “mirrors claims that have been rejected by courts in similar legal actions against multistate operators in the industry earlier this year.” Whether the 320-page complaint overcomes those defenses remains to be seen. Rescheduling Adds Fuel The timing is notable. On April 23, 2026, the Department of Justice issued an order rescheduling state-licensed medical marijuana and FDA-approved cannabis products to Schedule III of the Controlled Substances Act (CSA). Greater federal legitimacy may bring greater legal exposure. Rescheduling is likely to expand market access and raise expectations for product safety and accurate labeling, making negligence and consumer protection claims more likely for compliance lapses. Canada Offers a Preview Canada legalized recreational cannabis nationally in 2018, and its litigation experience since then is instructive. The country has seen a wave of product liability class actions, including Downton v. Organigram Holdings, the first certified cannabis product liability class action in Canada, involving pesticide contamination. Proposed actions have also targeted major Canadian producers over inadequate risk disclosures related to CHS. The pattern is consistent with what now appears to be emerging in the United States – consumer litigation follows the market opening up. Why This Matters for Cannabis Insurers For insurance professionals, Murray v. Cresco crystallizes several risks that the industry has long discussed in the abstract. The case represents a concrete, large-scale litigation event with the potential for enormous exposure. The RICO claim alone, with its treble-damage multiplier, could transform a significant jury verdict into a catastrophic one. Class certification across 12 states would dramatically multiply the defendant pool and the aggregate damages. The underwriting on cannabis product liability has, to date, focused on potential contamination, mislabeling, and the occasional exposure or ingestion-based bodily injury claim. Murray v. Cresco, however, introduces a different species of claim, one rooted in marketing conduct rather than product defect in the traditional sense. Currently, the insurance industry is largely insulated from large consumer class actions like Murray v. Cresco. Many cannabis policies contain broad health-hazard exclusions, which could deny coverage for claims involving specified adverse health effects from cannabis products. Class action exclusions are common, as are exclusions for statutory penalties like treble damages under RICO and state consumer protection awards. RICO-based claims are also vulnerable to criminal-acts exclusions or specific carve-outs for racketeering-related conduct. Coverage Disputes on the Horizon Notwithstanding this insulation, insurers should expect that defendants in cases like Murray will tender claims under their commercial general liability (CGL) policies, products completed operations policies, directors and officers (D&O) policies, and any specialty cannabis coverage they hold. The question of whether deceptive marketing and failure-to-warn allegations fall within a products-completed operations hazard, an advertising injury provision, or some other coverage grant will likely be fiercely contested. What Underwriters Should be Asking Going forward, underwriters writing cannabis risks should scrutinize their insureds' marketing practices with the same focus they currently bring to product testing and labeling. Documented testing integrity, warning protocols, supply-chain oversight, and recall history are all important along with marketing discipline. Policies should be reviewed for RICO and state consumer statute exposure. Underwriters should pay attention to emerging scientific studies on the health effect of cannabis use. Insureds that continue to make unsupported health claims, the kind at the center of Murray v. Cresco, present a different risk profile than those that keep their marketing factual and scientifically supported. Conclusion Murray v. Cresco may or may not succeed on the merits. Defendants will raise formidable challenges, including preemption arguments, standing issues, the difficulty of class certification across a dozen state consumer-protection regimes, causation defenses and the still-evolving science around cannabis and health. But the complaint’s sheer scale, its RICO backbone, and its explicit comparisons to Big Tobacco litigation signal that the era of treating cannabis product liability as a hypothetical future risk is over. For insurers and their cannabis policyholders, the takeaway is practical and immediate. Marketing claims are now a front-line litigation target, and the industry needs to treat them accordingly. Risk-mitigation programs should include compliance audits of all consumer-facing health claims, robust product warnings modeled on the warnings that accompany over-the-counter medical products, and honest internal assessments of what the science supports. Meanwhile, insurers should be reviewing policy language to understand their own exposure in the event that lawsuits like this one multiply. This article was published in the May 18, 2026, posting of Insurance Journal.
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