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Canadian Court Approves $32.5 Billion Settlement in Tobacco Lawsuits

The settlement resolves decades-long litigation involving health damages claims and allocates funds to provinces, territories, and smokers.

B.C. Attorney General Niki Sharma responds to questions outside B.C. Supreme Court in Vancouver on Monday Nov. 27, 2023. THE CANADIAN PRESS/Darryl Dyck
Cigarettes are seen in this illustration photo taken May 24, 2017. Picture taken May 24, 2017. REUTERS/Thomas White/Illustration/File Photo
A smoker puts out a cigarette in a public ash tray in Ottawa on May 31, 2016.

Overview

  • The settlement involves three major tobacco companies: JTI-Macdonald, Rothmans Benson & Hedges, and Imperial Tobacco Canada.
  • More than $24 billion will be paid to Canadian provinces and territories over two decades to cover health care costs.
  • Quebec plaintiffs in two class-action lawsuits will receive over $4 billion, while $2.5 billion is allocated for other affected smokers across Canada.
  • More than $1 billion from the settlement will fund a foundation dedicated to combating tobacco-related diseases.
  • The agreement, approved by an Ontario court, marks a significant milestone in Canadian legal and restructuring history.