Class Action Certified To Proceed to Trial

About this update from Organigram Global Inc.

Class Action Certified To Proceed to Trial /* Style Definitions */ span.prnews_span { font-size:8pt; font-family:"Arial"; color:black; } a.prnews_a { color:blue; } li.prnews_li { font-size:8pt; font-family:"Arial"; color:black; } p.prnews_p { font-size:0.62em; font-family:"Arial"; color:black; margin:0in; } Canada NewsWire MONCTON, NB, Jan. 21, 2019 MONCTON, NB, Jan. 21, 2019 /CNW/ - A class action was certified against Organigram Inc. (the "Company" or "Organigram") and its parent company Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), a leading licensed producer of cannabis in Canada, on Friday, January 18, 2019. Certification is not a decision on the merits of the lawsuit, but simply deals with the proper procedure for a lawsuit, which allows it to continue to the next stage. The Company is reviewing the decision to determine whether it will appeal. The Company intends to vigorously defend itself against this class action. The lawsuit was filed with the Supreme Court of Nova Scotia on behalf of class members who purchased medical cannabis that was the subject of the Company's voluntary product recalls in December 2016 and January 2017. The lawsuit deals with the reimbursement of funds paid for the cannabis purchased by medical customers in 2016. Organigram has already voluntarily reimbursed many of its customers for this recall via a comprehensive credit and refund program. Organigram has insurance to cover the cost of legal fees associated with the defense of the class action. Insurance coverage may also cover some or all of any monetary damages associated with any resolution of this matter.  While the ultimate outcome of any Court process is difficult to ascertain, Organigram management does not anticipate that the class action (including the resolution thereof) will impact its business or operations in any material manner. Some of that cannabis subject to the Company's voluntary product recalls in December 2016 and January 2017 contained trace elements of one or two pesticides not approved for use by Licensed Producers. The lawsuit also contains allegations of adverse health effects from the product.  The Court noted that it will be up to the plaintiffs to prove that trace elements of these pesticides can cause any adverse health effects and if so, it will be up to each individual to prove that the alleged health effects w...

View stock analysis, news, and events for Organigram Global Inc.