Court Significantly Reduces Scope of Class Action
April 30 2020 - 11:12AM
Business Wire
The Nova Scotia Court of Appeal has partially overturned the
certification of a class action (the “Class Action”) against
Organigram Inc. (the "Company" or "Organigram") and its parent
company Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), a
leading licensed producer of cannabis in Canada, on April 30, 2020
thereby significantly reducing the scope of the claim against the
Company.
The Nova Scotia Court of Appeal ruled that the Plaintiff failed
to present any evidence that the cannabis purchased by medical
customers in 2016 could cause any particular adverse health
effects. As a result, class members cannot bring claims for damages
for adverse health effects in the class proceeding.
An individual filed the Class Action in the Supreme Court of
Nova Scotia on behalf of class members who purchased medical
cannabis that the Company voluntarily recalled in December 2016 and
January 2017.
The Class Action will continue on the limited grounds of the
claimed reimbursement of funds paid for the cannabis purchased by
customers in 2016. Organigram will continue to defend what remains
of the Class Action as it has already voluntarily reimbursed many
of its customers for this recall via a comprehensive credit and
refund program. Organigram previously reported the Class Action to
its insurance provider which appointed counsel to defend the Class
Action. Insurance may be available to cover all or a portion of the
fees or damages which may be associated with the Class Action
although the Company’s coverage may be subject to varying limits or
exclusions. While the ultimate outcome of any Court process is
difficult to ascertain, Organigram management does not anticipate
that what remains of the class action (including the resolution
thereof) will affect its business or operations in any material
way.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select and TSX
listed company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing high-quality, indoor-grown
cannabis for patients and adult recreational consumers in Canada,
as well as developing international business partnerships to extend
the Company's global footprint. Organigram has also developed a
portfolio of legal adult use recreational cannabis brands including
The Edison Cannabis Company, Ankr Organics and Trailblazer.
Organigram's primary facility is located in Moncton, New Brunswick
and the Company is regulated by the Cannabis Act and the Cannabis
Regulations (Canada).
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or state that certain actions, events, or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information including
risks as disclosed in the Company’s most recent annual information
form, management’s discussion and analysis and other Company
documents filed from time to time on SEDAR (see www.sedar.com) and filed or furnished to the
Securities and Exchange Commission on EDGAR (see www.sec.gov).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be
placed on such information and no assurance can be given that such
events will occur in the disclosed time frames or at all. The
forward-looking information included in this news release are made
as of the date of this news release and the Company disclaims any
intention or obligation, except to the extent required by law, to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200430005640/en/
For Investor Relations enquiries, please contact: Amy Schwalm
Vice President, Investor Relations Amy.Schwalm@organigram.ca (416)
704-9057
For Media enquiries, please contact: Ray Gracewood Senior Vice
President, Marketing and Communications ray.gracewood@organigram.ca
(506) 645-1653
Organigram (NASDAQ:OGI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Organigram (NASDAQ:OGI)
Historical Stock Chart
From Apr 2023 to Apr 2024