Organigram to pay $2.31M after court approves class action lawsuit settlement

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The Supreme Court of Nova Scotia approved a $2.31 million settlement Wednesday.  (Shane Magee/CBC - image credit)
The Supreme Court of Nova Scotia approved a $2.31 million settlement Wednesday. (Shane Magee/CBC - image credit)

The Supreme Court of Nova Scotia has approved a settlement of $2.31 million for a class action lawsuit filed against New Brunswick cannabis company Organigram for its alleged use of prohibited pesticides.

The class action was filed five years ago after two large recalls in late 2016 and early 2017 of medical cannabis produced between Feb. 1 and Dec. 16, 2016. The recalls came after testing found "trace" amounts of bifenazate, malathion and myclobutanil.

In June, the Moncton-based cannabis company came to an agreed settlement with Wagners Law Firm.

The settlement was approved Wednesday at the Nova Scotia Law Courts in Halifax, Wagners confirmed in a news release.

Organigram will pay the $2.31 million, "in addition to the costs of administering notice and the settlement, to provide to Class Members a partial refund of the amounts they paid to purchase the recalled cannabis product, minus any amounts already refunded, legal fees and disbursements," Wagners said in the release.

Tori Weldon/CBC News
Tori Weldon/CBC News

The settlement applies to all those who purchased medical cannabis from Organigram that was the subject of a voluntary or involuntary recall on or before Feb. 14, 2019.

Those people, known as class members, are expected to begin receiving payments in October, according to the law firm.

Each class member will receive a notice of the settlement and the calculation of their individual payment amount, followed by an e-transfer with the funds.

Class members who do not use email will receive their notice and payment by mail.

The Court has appointed RicePoint Administration Inc. to send out the notices and distribute the funds.