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Marijuana investors are forgetting about legal risks faced by cannabis companies

Like stoners, cannabis investors seem euphorically oblivious to marijuana risks.

Weed smokers face health risks. Investors in companies including Tilray TLRY, -3.01% Canopy Growth CGC, -1.74% Cronos CRON, -3.44% and Green Thumb Industries GTBIF, -0.32% are taking on serious litigation risk.

Marijuana-stock investors could see their investments tank if lawyers launch legal assaults based on product-liability claims. Lawsuits could easily arise out of the health risks and for several other reasons.

But how is that possible? After all, we know that selling risky products doesn’t necessarily get a company in trouble.

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