Tobacco giants' creditors approve proposed $32.5B deal for health-care costs, recompense to smokers
CBC
A proposed deal that would see three tobacco giants pay out billions to provinces and territories, as well as smokers across Canada, has been approved by the companies' creditors, a lawyer representing some of the creditors says, calling it an important milestone in a lengthy legal saga.
The proposed $32.5-billion global settlement between the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — and their creditors was announced in October after more than five years of negotiations.
Representatives for the creditors, which include provincial governments seeking to recover smoking-related health-care costs as well as plaintiffs in two Quebec class-action lawsuits, voted on the plan in a virtual meeting Thursday afternoon.
Andre Lesperance, who represents plaintiffs in one of the Quebec lawsuits, said creditors overwhelmingly supported the proposal.
"We're not surprised, but we're glad the creditors are united right now to see this plan approved," he said in French.
Before the plan can be implemented, it must obtain the approval of the court. A hearing has been scheduled for the end of January, and Lesperance said he's optimistic the proposed deal will clear that hurdle as well.
"I think we're really close to the end," he said.
Dominique Claveau, executive director of the Quebec Council on Tobacco and Health, which is part of the lawsuit, said they look forward to having the court "bring this long-fought battle for justice and truth to its conclusion."
The proposed deal includes $24 billion for provinces and territories, $4 billion for tens of thousands of Quebec smokers and their heirs, and more than $2.5 billion for smokers in other provinces and territories. It also includes more than $1 billion for a foundation to help those affected by tobacco-related diseases.
British Columbia Premier David Eby, whose province initiated legal action against the three tobacco companies in 1998, said the deal is "a critical step forward after 20 years of litigation."
"Tobacco has harmed far too many people, and tobacco companies have avoided accountability for far too long," Eby said in a statement.
"We urge tobacco companies to take responsibility for their deceptive actions and accept this plan."
At least one of the companies has said it opposes the plan in its current form.
The Canadian Cancer Society, which is a social stakeholder in the case, said Thursday it hopes the proposal will be amended before it's approved by the court.
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