Class-action lawsuit filed over pesticides in medical marijuana
MONCTON, N.B. — A class-action lawsuit has been filed against a New Brunswick medical marijuana producer after unapproved pesticides were found in its products.
Wagners Law Firm alleges that about 2,000 people purchased cannabis products containing myclobutanil and bifenazate from Moncton’s Organigram Inc. last year. The Halifax-based law firm said both chemicals are considered toxic and do not have federal authorization for use on medical cannabis, and added users are worried about the health effects.
It said Organigram recalled five lots of product in December and 69 lots in January before the company’s organic certification was suspended.
Organigram did not immediately return a request for comment Monday.
But the company said in a Feb. 27 statement that its internal investigation into the pesticides was inconclusive, with no evidence “leading to the source of the contamination discovered.”
“We built Organigram with a goal of becoming one of the world’s best organic medical marijuana growers and suppliers. We know we have disappointed you and, quite frankly, we have deeply disappointed ourselves,” the company said in a Feb. 28 statement.
The company said although its investigation was inconclusive, it has implemented new measures to prevent future issues, including testing every product lot for pesticides before being sold.
Wagners said the proposed representative plaintiff — writer Dawn Rae Downton — consumed the cannabis for nearly a year before learning she was exposing herself to banned pesticides.
The statement of claim alleges Organigram breached its contract with customers to provide a certified organic product free from unauthorized pesticides.
Lawyer Ray Wagner said Organigram originally offered a refund to customers, but later reversed its position and offered credit for future purchases. The company has estimated the value of credits to be more than $2 million.
Wagner said receiving credits for the products is not enough, especially since there are customers who do not intend to purchase Organigram products again.
“We want the return of the funds that people paid for the product,” said Wagner in an interview Monday. “The product was not as it was billed. It was billed as an organic product and we want our money refunded.”
The class-action has not yet been certified by the Supreme Court of Nova Scotia, where it was filed Friday.
Organigram announced this month that Greg Engel would be taking over the role of CEO on March 13. Current CEO Denis Arsenault will move up to a newly created executive chairman position.