$23.6 Billion Tobacco Settlement in Canada: The Unprecedented Deal Impacting 100,000 Victims and Multiple Provinces Including Quebec

Tejal Somvanshi

The $23.6 billion agreement between JTI-Macdonald Corp., Rothmans, Benson & Hedges Inc., and Imperial Tobacco Canada marks a significant deal.

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The legal battle began in 1988 with a Quebecker victim and  launched a class action lawsuit supported by an anti-tobacco organization.

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The Canadian provinces demanded compensation for money invested in treating tobacco-related illnesses.

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A financing plan was reached between the three companies, victim representatives, and the provinces.

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The agreement totals $32.5 billion: $24.8 billion for provinces and territories to recover health costs related to smoking, $4.25 billion for Quebec victims, $2.5 billion for victims in the rest of Canada, and $1 billion to create a fund for smoker treatment

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In Quebec, cancer patients or their heirs will receive the largest compensation, up to €70,000

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Lawyer André Lespérance, this is the largest settlement in value in Canadian litigation history.

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The agreement follows the tobacco companies' 2019 bankruptcy filing after their defeat in the Quebec Court of Appeal

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The overall arrangement plan, including compensation for Quebec class action members, will be submitted to a creditor vote no later than December 12, 2024.

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