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Creditors approve proposed $32.5B deal with tobacco giants today: lawyer

The proposed deal includes $24 billion for provinces and territories
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A smoker puts out a cigarette in a public ash tray in Ottawa on May 31, 2016. THE CANADIAN PRESS/Sean Kilpatrick

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 companies91裸聊视频 creditors, a lawyer representing some of the creditors said Thursday, calling it an important milestone in a lengthy legal saga.

The proposed $32.5-billion global settlement between the companies 91裸聊视频 JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. 91裸聊视频 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.

Andr茅 Lesp茅rance, who represents plaintiffs in one of the Quebec lawsuits, said creditors overwhelmingly supported the proposal.

91裸聊视频淲e91裸聊视频檙e not surprised, but we91裸聊视频檙e glad the creditors are united right now to see this plan approved,91裸聊视频 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 Lesp茅rance said he91裸聊视频檚 optimistic the proposed deal will clear that hurdle as well.

91裸聊视频淚 think we91裸聊视频檙e really close to the end,91裸聊视频 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 91裸聊视频渂ring this long-fought battle for justice and truth to its conclusion.91裸聊视频

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 91裸聊视频渁 critical step forward after 20 years of litigation.91裸聊视频

91裸聊视频淭obacco has harmed far too many people, and tobacco companies have avoided accountability for far too long,91裸聊视频 Eby said in a statement.

91裸聊视频淲e urge tobacco companies to take responsibility for their deceptive actions and accept this plan.91裸聊视频

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 it91裸聊视频檚 approved by the court.

Rob Cunningham, the organization91裸聊视频檚 lawyer, said the plan should include smoking-reduction measures and the release of confidential industry documents, similar to what was achieved in the United States decades ago.

91裸聊视频淭here91裸聊视频檚 a once-in-a-lifetime opportunity to better control the tobacco industry and to reduce tobacco use. We91裸聊视频檙e never going to get this chance again,91裸聊视频 he said.

The foundation funded through the proposed deal should also have its mandate expanded to include prevention of tobacco-related disease and public awareness efforts to help people quit smoking, said Manuel Arango, vice-president of policy and advocacy for Heart & Stroke.

91裸聊视频淲e already have a lot of studies and a lot of knowledge about the treatment of tobacco-related disease,91裸聊视频 he said. 91裸聊视频淪o it91裸聊视频檚 really about looking forward and helping prevent tobacco-related disease in the future.91裸聊视频

The proposal is the culmination of a corporate restructuring process set off by a decades-long legal battle over the health effects of smoking.

In 2015, a Quebec court ordered the three companies to pay about $15 billion in two class-action lawsuits involving smokers in the province who took up the habit between 1950 and 1998 and either fell ill or were addicted, or their heirs.

Four years later, the landmark ruling was upheld by the province91裸聊视频檚 Appeal Court. The companies then sought creditor protection in Ontario in order to negotiate a global settlement with their creditors.

All of the legal proceedings against them were put on hold during the talks. That order has now been extended until Jan. 31, 2025.





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