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Organigram takes Canadian government to court over cannabis lozenge dispute

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Canadian marijuana operator Organigram Holdings is asking a federal court to quash a Health Canada decision that the company’s popular ingestible cannabis lozenges should be classified and regulated as edibles instead of extracts.

The legal challenge could have broader implications for Canada’s regulated cannabis sector and affect millions of dollars in sales of high-potency lozenges and similar products.

Toronto-headquartered Organigram is seeking an application for judicial review.

In Canada, such reviews give stakeholders, including companies, the opportunity to challenge decisions by government authorities, explained lawyer Ranjeev Dhillon, a partner with Toronto-based McCarthy Tétrault and co-lead of the firm’s cannabis law group.

“I think a lot of people in the industry will be waiting to see what the result of this is, because if Organigram is successful, I think that could lead to more challenges in the future,” said Dhillon, who is not involved with Organigram’s case.

Organigram revealed the court proceeding against the federal health department when it posted quarterly results earlier this month.

The dispute between the cannabis company and Health Canada revolves around the regulatory classification of Organigram’s Edison-branded Jolts cannabis lozenges.

The outcome could impact Organigram’s revenue: Retail sales of Jolts lozenges totaled nearly 10.9 million Canadian dollars ($8 million) in Alberta, British Columbia, Ontario and Saskatchewan in 2022, according to point-of-sale data from Seattle-based cannabis analytics firm Headset.

Organigram CEO Beena Goldenberg told MJBizDaily the dispute was also “reputational.”

“We believe we have a compliant product. … We believe that the regulatory requirement for a product to be an edible is that it has to be consumed in the same manner as food,” she said.

“And we don’t think our Jolts are intended to be consumed in the same manner as food.”

Timeline of regulatory dispute

Jolts cannabis lozenges contain 10 milligrams of THC each and 100 milligrams of THC per package, exceeding the 10-milligram-per-package limit established by Health Canada regulations for cannabis edibles.

However, Organigram – and other companies that make similar products, such as Indiva Limited – have, until recently, successfully sold the lozenges as a cannabis extract, which have a higher THC limit than edibles.

Jolts “were developed out of a growing and unmet consumer need for a higher-potency, legal product that would be quality controlled,” Goldenberg said.

“This would offer consumers, including medical patients, an option for higher-potency products that aren’t inhalables, for people who have difficulty swallowing capsules and those who can’t tolerate the mouthfeel of oils,” she added.

“We really believe we’ve developed a compliant product that would meet those consumer needs.”

In January, Health Canada said ingestible cannabis extracts should be classified as edibles and asked companies including Organigram to voluntarily stop selling them.

Organigram told the regulator it disagreed and would not stop selling Jolts as it sought “further dialogue.”

On March 1, Health Canada issued a “non-compliance determination” to Organigram requiring the company to stop producing and selling Jolts, the filing shows.

A few days later, the regulator issued a public advisory about “cannabis edibles incorrectly sold as cannabis extracts,” warning consumers that users of such products “may accidentally consume higher than expected levels of THC, which can cause adverse reactions ”

Health Canada also released industry guidance outlining its position on the difference between cannabis extracts and edibles.

Organigram announced it was pausing production of Jolts and considering its legal options later in March.

The company must stop selling Jolts to provincial cannabis wholesalers as of May 31, Goldenberg said.

Seeking judicial review

Cannabis industry attorney Dhillon said it’s the first time he can recall a cannabis company seeking judicial review of a Health Canada decision.

“And if it’s not the first, it’s exceedingly rare to challenge someone like Health Canada on something like this,” he added.

Dhillon cited factors including the time and cost involved in such challenges and cannabis companies’ concerns about maintaining good relationships with the regulator.

“If there’s disputes, a lot of times they’re discussed behind the scenes so it doesn’t get to this point,” he said.

Organigram’s recent application for judicial review seeks “an order quashing or setting aside the decision and requiring Health Canada to make a determination that the lozenges are a cannabis extract and do not constitute edible cannabis.”

Alternatively, Organigram seeks the order to be suppressed and the matter to be returned to Health Canada “for redetermination.”

The cannabis company argues that “Health Canada acted unreasonably, including by erring in law and basing its decision on erroneous findings of fact unsupported by the material before it.”

Organigram’s court filing argues that:

  • Jolts lozenges are meant to be dissolved under the tongue or through the skin inside the cheek, “distinct from the manner in which food is consumed.”
  • The lozenges contain “a harsh menthol flavor that is designed to limit consumption” and all the components are “permitted ingredients for a cannabis extract” according to regulations.
  • Organigram “has received no reports of serious adverse reactions despite widespread distribution” of the lozenges.

Another aspect of the disagreement between Organigram and Health Canada revolves around Jolts ingredient oligofructose, which Organigram said “assists in forming a solid and glassy lozenge and provides for even dispersion and dissolution.”

“Health Canada incorrectly and disproportionately focused on the use of oligofructose in the lozenges,” Organigram’s filing says.

Organigram CEO Goldenberg believes resolving the application for judicial review could take until late summer or longer, in light of court backlogs.

“We are trying to engage with Health Canada to perhaps find a solution in the short term,” she said.

A Health Canada spokesperson told MJBizDaily in a statement that commenting would be inappropriate, “as this matter is currently before the courts.”

Source: https://mjbizdaily.com/organigram-takes-health-canada-to-court-over-cannabis-lozenge-dispute/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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