Tobacco giants agree to pay out over $29B following Quebec lawsuits

Major tobacco companies have agreed to pay nearly $29 billion to affected smokers and families in a deal following the results of a Quebec lawsuit.

In what major advocates are saying is a “historic” proposed deal, companies JTI-Macdonald, Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. agreed to pay nearly $25 billion to provinces and territories.

They have also agreed to pay over $4 billion to Quebec smokers and their families.

The proposed plan of arrangement developed through mediation was filed in court Thursday.

The agreement stems from a Quebec lawsuit involving people who smoked between 1950 and 1998 and got sick or developed an addiction.

The proposed plan says the payments would be made gradually across the country but $6 billion would be paid outright if and when the deal goes through.

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Quebec plaintiffs would be eligible for $100,000 each to those who file a claim.

There is also more than $2.5 billion for smokers in other regions diagnosed with lung cancer, throat cancer, or other serious illnesses between March 2015 and March 2019.

The companies sought creditor protection in Ontario in 2019 after losing a ruling in Quebec requiring them to pay nearly $15 billion to nearly 100,000 people in two class-action lawsuits.

Legal proceedings have been put on hold and extended since then as the three companies worked toward a settlement.

A number of health-care groups have been following the process closely including the Canadian Cancer Society, who plans to make submissions as part of the approval process.

The proposal must be approved by creditors and the court before it can be implemented.

With files from The Canadian Press

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