Class action against pot producer Organigram gets green light for trial

BUSINESS

Class action against pot producer Organigram gets green light for trial

The Canadian Press Published Monday, January 21, 2019 3:29PM EST

Growing flowers of cannabis intended for the medical marijuana market are shown at OrganiGram in Moncton, N.B., on April 14, 2016. (THE CANADIAN PRESS/Ron Ward)

Text:

MONCTON, N.B. -- A class action lawsuit against licensed cannabis producer Organigram Inc. has been given the green light to proceed to trial.

The Supreme Court of Nova Scotia last Friday certified the proposed class action, filed in 2017 after the Moncton-based organic pot grower recalled a number of its products due to the detection of certain pesticides.

Organigram in December 2016 announced a voluntary recall of certain lots of medical marijuana supplied between August and December that year after a certain pesticide not registered for use on marijuana under the Pest Control Products Act was detected.

The cannabis producer also initiated a voluntary recall in January 2017, for all products produced between Feb. 1 and Dec. 16, 2016, after subsequent testing found additional lots containing levels of certain pesticides that exceeded the amounts allowed in food production.

Organigram said in a statement today that it is reviewing the court's decision to determine whether it will appeal, and it intends to vigorously defend itself against the class action.

The cannabis company added that the lawsuit deals with the reimbursement of funds paid for the pot purchased in 2016 and it has already voluntarily reimbursed many of its customers for this recall.