MMJ Holdings Sues CMS Over CBD
Analysis based on 8 articles · First reported Apr 11, 2026 · Last updated Apr 13, 2026
The lawsuit against the United States — Centers for Medicare & Medicaid Services' BEI program introduces regulatory uncertainty in the cannabinoid and pharmaceutical markets. If the injunction is granted, it would reinforce the United States — Food and Drug Administration's role in drug approval, potentially benefiting companies like Maqam International Holding that follow established pathways, while creating headwinds for those relying on less regulated access models.
Maqam International Holding has filed a federal lawsuit against the United States — Centers for Medicare & Medicaid Services (CMS) challenging its newly launched Substance Access Beneficiary Engagement Incentive (BEI) program. The lawsuit, filed in the United States — United States District Court for the District of Columbia, alleges that CMS created a federally supported cannabinoid access pathway for Medicare beneficiaries without required rulemaking, public notice, or United States — Food and Drug Administration (FDA) clinical validation standards. Maqam International Holding, a pharmaceutical cannabinoid developer, argues that the BEI program undermines the FDA's botanical drug development framework, imposes economic injury on companies pursuing lawful pharmaceutical development, and treats seniors as 'laboratory subjects.' Duane Boise, CEO of Maqam International Holding, stated that the program is 'regulatory improvisation' and a 'direct reversal of federal policy without explanation or procedural safeguards.' The plaintiffs are seeking a preliminary injunction to halt the program nationwide, arguing that federal agencies cannot change national drug-access policy without transparency, science, and congressional authorization.
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