A few weeks ago I wrote about a dispute brewing in federal district court in Arizona involving a marijuana industry credit card company. The plaintiff in that case, a marijuana dispensary, brought an action against the credit card company and requested the appointment of a federal receiver over the defendant's assets. Many people, including me, thought the Court would decline to appoint a federal receiver based upon the dearth of bankruptcy decisions holding that companies engaged in an illegal activity under federal law may not use the bankruptcy laws to protect them from creditors.
The Court in this case did not need to decide whether a federal receiver was available in situations involving cannabis companies inasmuch as it found that a receivership was not warranted under the circumstances because the dispensary operator failed to meet its burden of proof regarding the imposition of this remedy. So no decision on the availability of this remedy under federal receivership law.