More Information Anticipated on Planned Agreement Involving Tobacco Giants Paying Billions

October 18, 2024 TruthUSA

Today, more details are anticipated regarding a proposed deal where three major companies will pay out billions of dollars to provinces, territories, smokers, and their families.

The companies—JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd.—sought creditor protection in Ontario in 2019 after a ruling in Quebec ordered them to pay nearly $15 billion in two class-action lawsuits.

All legal proceedings against the companies were halted to allow them to continue operating and reach a global settlement with creditors, which include Quebec plaintiffs and provincial governments seeking to recover smoking-related health-care costs.

A proposed plan of arrangement, developed through mediation, was filed in court on Thursday, with nearly $25 billion allocated for provincial and territorial governments, over $4 billion for Quebec class-action members, and more than $2.5 billion for smokers in other provinces and territories diagnosed with certain illnesses between 2015 and 2019.

Lawyers involved in the Quebec lawsuits and those representing provinces and territories will discuss the proposal in separate media events today.