In a new twist on Wednesday, a DEA judge ordered the agency to respond to allegations that it opposes President Joe Biden's directive of August 2023 to reschedule marijuana and that it is improperly conferring with cannabis opponents.

Marijuana Moment reported that one day after a motion was filed outlining these allegations, which include improper communications with opponents of the reform, the DEA is now compelled to reply next week. Additionally, participants in the hearings are asking the judge to remove the DEA from the process, noted the outlet.

DEA Administrative Law Judge John Mulrooney wrote that the government is ordered to file a response to a motion to reconsider by Jan. 13.

What Happened: Attorneys representing cannabis advocates argued the DEA's late submission of data on marijuana reclassification undermines the fairness of the hearing process.

They said the agency violated federal law by withholding information until the eve of the hearing, hindering the Department of Health and Human Services scientific review of January 2024 and depriving pro-rescheduling groups of a fair opportunity to participate.

Adding fuel to the fire, statements from the DEA have questioned the medical value of cannabis, citing a lack of robust clinical trials approved by the Food and Drug Administration to support the safety and efficacy of cannabis for its various therapeutic uses.

The original motion regarding "ex parte" communications included failing to disclose nearly 100 requests to participate in the hearings and coordinating with at least one anti-rescheduling group.

Read Also: DEA Slammed For Unlawful Talks With Cannabis Opponents – The Plot Thickens

Cannabis Stocks: Deep Declines Over The Year

The reclassification process, the first of its kind since 1970, has kept cannabis industry and marijuana stocks on edge and it showed at the end of 2024.

AdvisorShares Pure US Cannabis ETF (NYSE:MSOS), a benchmark for the sector, plummeted by about 48% in 2024. As of this writing, MSOS shares are down 5.91% on the day.

U.S. and Canadian marijuana stocks didn't do much better amid concerns over the outcome of the DEA's review.

Curaleaf Holdings (OTC:CURLF) fell some 62% in 2024. Verano Holdings (OTC:VRNOF) lost about 73%, Trulieve (OTC:TCNNF) fell about 7.5%, Green Thumb Industries (OTC:GTBIF) is down 31% and Cresco Labs (OTC:CRLBF) has lost about 37% of its value. TerrAscend (OTC:TSNDF) was also down by 62% in 2024, while Ascend Wellness (OTC:AAWH) dropped 64%.

Canopy Growth (NASDAQ:CGC) has fallen 45% and Tilray Brands (NASDAQ:TLRY) subtracted 37%. One exception was Canada's OrganiGram (NASDAQ:OGI), which rose more than 20%.

The DEA is required to respond to the allegations by Jan. 13, so stay tuned as the process grinds on.

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