Three major tobacco companies have reached a proposed settlement worth $32.5 billion to resolve claims from provinces, territories, and smokers across Canada. A lawyer representing some creditors announced Thursday that the agreement has been approved by the companies’ creditors, marking a significant step in a long-running legal battle.
The settlement, involving JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd., was revealed in October after more than five years of negotiations. It aims to compensate provincial governments for smoking-related healthcare costs and provide payments to plaintiffs in two Quebec class-action lawsuits.
During a virtual meeting on Thursday, creditors, including provincial governments and Quebec lawsuit plaintiffs, overwhelmingly voted in favor of the plan. André Lespérance, a lawyer for one group of plaintiffs in Quebec, expressed satisfaction with the outcome, stating, “We’re not surprised, but we’re glad the creditors are united in approving this plan.”
The settlement now requires court approval, with a hearing scheduled for late January. Lespérance is optimistic about the court’s decision, saying, “I think we’re very close to the finish line.”
Dominique Claveau, executive director of the Quebec Council on Tobacco and Health, emphasized the importance of concluding this legal fight, describing it as a pursuit of justice and truth.
The proposed settlement includes $24 billion for provinces and territories, $4 billion for tens of thousands of Quebec smokers and their families, and over $2.5 billion for smokers in other parts of Canada. Additionally, more than $1 billion is allocated to establish a foundation to support those impacted by tobacco-related illnesses.
However, at least one of the tobacco companies has expressed opposition to the plan in its current form. Meanwhile, the Canadian Cancer Society, a social stakeholder in the case, has called for amendments to the proposal before it gains court approval.
Leave a Reply