Tag Archives: Class action lawsuit

Producer of tainted medical marijuana responds to proposed lawsuit

Wagners law firm in Halifax has filed a notice of action against the federally licensed producer

 Organigram, a medical marijuana producer based in Moncton, says it is working to get its full organic accreditation back after an investigation into how low levels of pesticides got into the company’s products. (Tori Weldon/CBC) 

A New Brunswick-based medical marijuana company says it will “vigorously” defend itself if a class action lawsuit goes ahead over pesticides found in company products. 

Organigram Inc. issued voluntary recalls of almost all of its products sold last year after residual levels of unapproved pesticides were found. 

On Friday, Wagners law firm in Halifax filed a notice of action in Nova Scotia Surpreme Court against the federally licensed producer and its parent company, Organigram Holdings Inc. 

Lawyer Ray Wagner said in an interview that his firm has received hundreds of calls from Organigram consumers who are worried about the potential impact of pesticides on their health. 

The proposed lawsuit alleges negligent “design, development, testing, manufacturing, distribution, sale and marketing of [Organigram’s] purported organic medical cannabis,” the firm said. 

The action also seeks refunds for consumers on recalled products, and accuses Organigram of breaching its contract with consumers to provide certified organic products. 

Customer refunds 

In a news release Tuesday, Organigram CEO Denis Arsenault responded to the legal action, saying the producer will “vigorously defend our company and its actions related to the product recall.”

 Organigram CEO Denis Arsenault says the company offered all non-insured clients a credit equal to the purchase price of the recalled product. (CBC) 

He added that the company offered all non-insured clients an account credit equal to the purchase price of the recalled product. 

The majority of clients are satisfied with this response, he said, and any claims by Wagner’s that customers were offered a refund at first are erroneous. 

“We have been in constant communication with clients who purchased recalled product,” he said. 

“We have been clear that Organigram will meet their needs by providing account credits valued at 100 per cent of that product’s value and will make freshly harvested and tested product available to them.” 

Posting test results 

Starting next week, Organigram said, it will post all test results of its harvested marijuana on its website. 

The company is the only producer of medical marijuana in New Brunswick that has been approved by Health Canada.

 Ray Wagner said that initially, his firm was not going to pursue a class action suit because Organigram had said it would refund customers, something the producer denies. (CBC) 

It issued voluntary recalls of almost all of its products sold last year after residual levels of two unapproved pesticides — myclobutanil and bifenazate — were found. 

When burned, myclobutanil produces hydrogen cyanide, which interferes with how oxygen is used in the body and can cause headaches, dizziness, nausea and vomiting. 

As a result of the recall, the Moncton company’s organic certification was suspended in January. 

In the news release, Organigram said it recently completed an investigation into events leading to the December and January recalls and has put new growing and harvesting protocols in place. 

Organigram did not say what it discovered about how the pesticides got into the company’s products. 

Marijuana harvested after the recall has tested negative for pesticides, the news release said. 

“With the new procedures in place, we are fully confident in our ability to deliver high-quality product to our clients,” said Arsenault. 

Financial impact 

News of the lawsuit caused a sharp decline in Organigram Holding Inc.’s share price. 

On Tuesday, shares dropped by 32 cents, or 12.96 per cent, to $2.15. 

Over the last five days, shares dropped 14 per cent and are down 25.86 per cent to date from last year. 

Arsenault said the company has allocated $2.26 million this quarter to cover losses associated with the recalls. 

In an email to the CBC, he added that the share price does not reflect the business’s long-term potential. 

“We remain confident that Organigram has addressed the issues with the recall [and] will exit the situation a stronger company.” 

Original article can be found here

Halifax firm suing pot producer endorsed by Trailer Park Boys

Organigram, a Canadian cannabis producer, business partner and brand developer for the Trailer Park Boys, recalled their medical marijuana voluntarily after unapproved pesticides were found in their product. 

The cannabis producer once backed by the Trailer Park Boys could face a class action lawsuit after pesticides were found in its products. 

Wagners Law Firm is filing suit against Moncton-based medical cannabis producer Organigram over the contamination and recall. 

It said in a news release Monday that the chemicals myclobutanil and bifenazate, “both considered toxic,” and are not authorized for use on cannabis under the Access to Cannabis for Medical Purposes Regulations. 

“Over 2,000 customers are estimated to have purchased the contaminated products, primarily throughout 2016,” the release said. 

“On December 28, 2016, Organigram recalled five lots of product that tested positive for the presence of myclobutanil and/or bifenazate. On January 9, 2017, Organigram initiated a second recall of an additional sixty-nine lots of product containing myclobutanil and/or bifenazate.” 

Their certificate was suspended in January of 2017. 

Health Canada’s regulations allow a list of 13 pesticides in medical marijuana. Myclobutanil and bifenazate are not among them. 

A previous Organigram news release stated the recall cost the company $500,000. 

“Thanks to the prompt action of our team, the understanding and loyalty of our patients and investors, the support of our licensed testing counterparties, and the collaboration and oversight of our industry’s regulators, (Organigram) has been able to address these challenges and setbacks immediately and definitively,” said Organigram, CEO Denis Arsenault in a previous news release. 

The Trailer Park Boys teamed up with the company in November to develop TPB-branded products aimed at recreational marijuana users. 

The Chronicle Herald contacted Organigram Monday morning for comment on the suit but has yet to hear back. 

Recently, Greg Engel assumed the position of CEO, with former CEO Denis Arsenault moving to the position of chairman. 

“We consider ourselves extremely fortunate to find and recruit Greg,” said Arsenault in a release. “Greg emerged as the leading candidate following an international search. His experience and leadership will be instrumental as we enter the next phase of our growth.” 

Dawn Rae Downton — proposed representative plantiff in the suit — consumed Organigram products for a year before learning about the banned pesticides. She was using the product for inflammatory arthritis. 

Wagners’ news release says Organigram originally offered a refund of the recalled product for purchasers, but changed their minds and offered a “credit” toward future purposes. 

“We’ve received hundreds of calls about the situation since the recalls came to light. People are very worried about the impact this has had, and may have, on their health. We have been monitoring the situation,” said Ray Wagner, counsel for the proposed class action. 

“When the company finally indicated they would offer refunds, we felt that it was appropriate to refrain from filing the class action — affected individuals could obtain compensation without the need for litigation. However, the reversal in position, which was done without announcement, is wholly unsatisfactory to our clients. Licensed medical marijuana producers cannot shirk their responsibilities to customers. These are medical products. They were held out as organic. They need to be helpful to patients, not harmful.”

Original article can be found here