In January 1998, the U.S. Government sued the OCBC to stop the cultivation and distribution of marijuana in violation of federal law. The Government based its argument on the provisions of the Controlled Substances Act, which forbade the distribution, manufacture, and possession with intent to distribute or manufacture a controlled substance (including marijuana). The lawsuit began in the U.S. District Court for the Northern District of California, and came before District Judge Charles R. Breyer. He concluded that the government would likely prevail on the merits and issued the injunction.