Deadline approaching for Canadians to claim thousands in $4.75M drug settlement

Canadians affected by prescription drug Rexulti could receive thousands in a $4.75-million settlement, and the deadline to file a claim is just months away.

In November, the Consumer Law Group announced that the Superior Court of Quebec approved a Canada-wide class-action settlement of $4.75 million “that will be used to pay compensation for persons that file valid, timely, and approved claims.”

Eligible Canadians have until Aug. 1, 2026, to file a claim.

The allegations

Law firm of Rochon Genova filed a class-action lawsuit against Otsuka Canada Pharmaceutical Inc. and Lundbeck Canada Inc., and 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 alleges 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?

According to the settlement agreement, class members are eligible to file a claim if they have been prescribed and ingested Rexulti between Feb. 16, 2017, and Aug. 23, 2025.

Those eligible include:

• Canadians who have been taking Rexulti for at least a month or more;
• Canadians who developed one or more Compulsive Behaviours and Impulse Control Disorders, such as compulsive gambling, hypersexuality, binge eating, compulsive shopping and/or spending;
• Canadians who filed a properly filled-out claim package, including necessary documentation such as pharmacy records, medical files, proof of damages, gambling records, employment records, etc., before Aug. 1, 2026.

How much could you receive?

If you’re eligible, the amount you receive could depend on various factors.

The 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. Estimates for compensation depend on the category: $6,531.25 for mild cases, $29,687.50 for moderate cases, $102,600 for severe cases, and $71,250 for catastrophic cases.

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?

Eligible Canadians must submit a claim form online before Aug. 1, 2026.

The claims administrator will decide the levels and amount of compensation, and there is also an appeal procedure.