Canadians affected by the use of the prescription drug Rexulti could cash in on a $4.75 million class-action lawsuit settlement.
On Aug. 23, Toronto-based law firm Rochon Genova shared a public notice announcing that both parties had reached an agreement on the proposed settlement. The settlement is still pending approval from the Superior Court of Québec.
The issue
rexultihcp.com/Shutterstock
A class action lawsuit against Otsuka Canada Pharmaceutical Inc. and Lundbeck Canada Inc. was authorized on Dec. 3, 2021.
“The Class Action alleges that Rexulti can cause, contribute, or exacerbate a variety of compulsive behaviours and impulse control disorders, specifically compulsive or pathological gambling, hypersexuality, binge-eating, and uncontrollable shopping,” reads the court document.
The lawsuit claims that the defendants “failed to warn the class members and their physicians of this risk” by not conducting enough research and testing regarding those side effects. In addition, plaintiffs allege that the Rexulti makers conspired to conceal the risks of the harmful side effects from class members, which “caused the class members harm.”
Otsuka Canada Pharmaceutical Inc. and Lundbeck Canada Inc. have agreed to pay the settlement without admitting liability.
Who’s eligible?
Regine Poirier/Shutterstock
According to the notice of settlement, class members are eligible to file a claim if they meet the following criteria:
Canadians who were prescribed Rexulti between Feb. 16, 2017 and Aug. 23, 2025, and developed one or more Compulsive Behaviours and Impulse Control Disorders such as compulsive gambling, hypersexuality, binge eating, compulsive shopping and/or spending
Family members, dependents, and heirs of persons prescribed Rexulti
How much could you receive?
Vergani Fotografia/Shutterstock
If the $4.75 million settlement fund is approved, around $2.85 million will be set aside for compensation for approved claims. That includes $118,750 in claims from the Public Health Insurers.
If you’re eligible to file a claim, the amount you receive could depend on various factors.
The proposed settlement has divided compensation under two categories: psychological harm and financial loss. Class members could be eligible for both.
Compensation for psychological harm depends on the severity of the side effects suffered from taking Rexulti. Documentary evidence of prescription, signed attestations, and medical records of treatment are required.
A total of $570,000 will be set aside for claimants who can prove loss of income or employment, gambling losses, or loans incurred as a result of gambling caused or exacerbated by Rexulti. Gambling records and signed attestations must be provided.
Family members can also receive a percentage of the eligible class member’s payment for psychological harm. Compensation in this category will be capped at $199,500.
The remaining amount will go towards administration fees ($55,000) and court-approved legal fees ($1.425 million).
What should you do next?
Ralf Kleemann/Shutterstock
Eligible Canadians don’t have to do anything at this time.
The Superior Court of Québec must still approve the settlement, and the hearing will take place on Oct. 31. If the settlement of $4.75 million is approved, claim forms will be available online. Additional information will be published on Rochon Genova’s website.
Class members who want to object to the settlement must deliver a written objection by Oct. 21.