Major Tobacco Companies Nearing Historic C$32.5 Billion Settlement in Canada
ICARO Media Group
### Landmark Settlement Nears Completion in Canada's Decades-Long Tobacco Battle
In a monumental step towards resolving a protracted legal battle, three of the globe's largest cigarette manufacturers are on the brink of finalizing a settlement in Canada. Philip Morris, British American Tobacco, and Japan Tobacco are poised to compensate smokers and health departments a staggering C$32.5 billion (approximately £18 billion or $23.6 billion) as part of the agreement brokered by a court mediator.
The origins of this contentious struggle trace back to a pivotal 2015 Quebec court ruling. The court determined that these companies had long been aware of the significant health risks associated with smoking, such as cancer, yet deliberately withheld this information from the public. As a consequence, the tobacco firms placed their Canadian subsidiaries into bankruptcy, leading to protracted negotiations that are now approaching a resolution.
Despite some unresolved details, Philip Morris has expressed optimism about concluding the legal process soon. "Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude," stated Jacek Olczak, CEO of Philip Morris, which operates in Canada under the name Rothmans, Benson & Hedges.
The Quebec Council on Tobacco & Health heralded the proposal, noting that if approved, this agreement would be the first instance worldwide where litigation against major tobacco companies results in direct compensation for victims. According to the proposal, approximately C$6.5 billion will be allocated to smokers and their heirs affected by illnesses like lung or throat cancer, with around C$4 billion earmarked for the original claimants from Quebec. This could see individuals receiving up to C$100,000 each, contingent on the specifics of their illness and smoking history.
Government health departments across Canada stand to receive roughly C$24 billion over time under the settlement. The initial lawsuits filed against these tobacco giants date back to 1998, culminated in a 2015 Quebec court decision ordering C$15 billion in damages, which was later upheld in 2019.
The voting on this landmark plan is scheduled for December this year. If the majority of claimants approve it, a hearing for final approval is anticipated in the first half of the following year. Trudel Johnston & Lespérance, a law firm representing some of the claimants, expressed confidence that nearly all creditors would support the plan.
However, some public health advocacy groups have voiced criticism over the settlement. They argue that while it compensates victims, it does little to curb future harm caused by tobacco companies. "The settlement provides no roadmap aimed at preventing these very same companies from causing more damage by recruiting new victims, including through new enticing nicotine gadgets," declared Smoking & Health, Physicians for a Smoke-Free Canada, and the Quebec Coalition for Tobacco Control in a joint statement. Despite these concerns, the financial compensation for victims remains a notable outcome of this extensive legal campaign.