Organigram Reaches Settlement in Recalled Medical Cannabis Case

The company initiated the recall after five lots of product tested positive for low levels of myclobutanil and/or bifenazate.
The company initiated the recall after five lots of product tested positive for low levels of myclobutanil and/or bifenazate.
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Organigram Holdings, a licensed producer of cannabis in Canada, has reached a proposed settlement in a previously disclosed class action lawsuit related to medical cannabis that was voluntarily recalled in December 2016 and January 2017.

The company initiated the recall after five lots of product tested positive for low levels of myclobutanil and/or bifenazate, which are not pesticides authorized for use on cannabis plants under the Canada's Pest Control Products Act.

As part the Settlement, the company has agreed to pay an aggregate of CAD$2,310,000 (approximately $1.8 million).

On August 31, 2022, the Court will hold a hearing to consider whether to approve the settlement. If the settlement is approved by the Court, the settlement amount will be used to provide class members a refund of the amounts paid to purchase the voluntarily recalled product, less any refunds they have already received, as well as the payment of legal fees. In addition, the company has agreed to pay the third-party claims administration costs.

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