Canadian Banks Sued By The Cannabis Industry Over ‘Financial Discrimination’

One of the most hotly-debated topics in the cannabis industry relates to banking access for companies. Many companies over the years have experienced banking issues related to cannabis prohibition around the world, and yet, many other countries have had no issues.

Understandably, there are people in the cannabis industry that think banking reform is a top priority, while others don’t seem as concerned about it for one reason or another. Many advocates are not necessarily opposed to banking reform, but rather, do not want to see it tied to social justice and equity efforts and simply decided on its own merits. Conversely, there are also others that do wish to tie the two together.

Certain members of Canada’s cannabis industry are apparently no longer interested in debating in the ‘public square’ and have taken their fight to the court system. Below is more information about it via a news release from Groupe SGF:

Groupe SGF (Cannabis Legal Advisors and Consultants) announces the launch of a class action lawsuit on behalf of Mr. Gabriel Bélanger (Founder of Origami Extraction Inc.) against the Desjardins Federation, National Bank, Royal Bank, Bank of Montreal, TD Bank, and CIBC. The lawsuit alleges that the named banks have engaged in financial discrimination against actors in the legal cannabis industry in Canada.

The legal cannabis industry in Canada faces financial discrimination

The plaintiff, Gabriel Bélanger, is determined to expose to the Superior Court all he has suffered as an actor of the legal cannabis industry in relation with the defendants. The main allegations involve denials of opening bank accounts, sudden closures of current bank accounts, and denials of access to various financial tools such as mortgage loans and credit lines for legal cannabis industry businesses.

The class action includes all individuals or corporations that, directly or indirectly, do business with the major defendant banks and who are involved in the legal cannabis industry since October 17th, 2018.

For more information on the class action, please visit Groupe SGF’s website at https://groupesgf.ca/action-collectives-banques.

“For far too long, Canadian banks have treated the cannabis industry like pariahs, as if it was still completely illegal. By doing so, they are depriving the Canadian, but especially the local economy of developing a promising market.”

Me Maxime Guérin, Lawyer, Groupe SGF – Cannabis Legal Advisors and Consultants

Groupe SGF is a Quebec law firm specializing in the cannabis industry. The company represents the interests of industry actors facing legal and financial challenges.

The plaintiff, Gabriel Bélanger, engineer, is the founder and main shareholder of Origami Extraction Inc., a cannabis micro-processing company located in Beauce.

SOURCE Groupe SGF – Conseillers juridiques et consultants en cannabis

For further information: Maxime Guérin, Lawyer, 418-476-2906 (dedicated line), 1-866-782-5910 (toll-free), max@groupesgf.ca