Colo. homeowners lose case against pot business neighbor

DENVER (AP) – A federal jury has ruled against a Colorado couple who claimed that a neighboring marijuana grow operation hurt their property’s value, in a case closely watched by the U.S. cannabis industry.

The jury in Denver on Wednesday rejected the homeowners’ racketeering lawsuit alleging a marijuana farm’s odor devalued their property values and took away from their enjoyment of horseback riding.

The Colorado Sun reported that jurors reached their verdict after deliberating for about half a day.

It was the first time a jury considered a lawsuit using federal anti-racketeering law to target a marijuana company.

Matthew Buck, the lawyer for grow owner Parker Walton, said a loss in court would have meant the loss of Walton’s business.

Vulnerability to similar lawsuits is among the many risks facing marijuana businesses licensed by states but still violating federal law. Three other federal lawsuits using the same strategy are pending in California, Massachusetts and Oregon.

Analysts and industry lawyers say the verdict could dissuade others from filing similar lawsuits, which are expensive to litigate.