An Ontario court has approved a historic $32.5 billion settlement that will see three major tobacco companies compensate provinces, territories and ex-smokers in Canada.
In a ruling released today, Ontario Superior Court Chief Justice Geoffrey Morawetz called the approval a “momentous achievement in Canadian restructuring history.”
The settlement was first proposed in October after years of mediation between the companies—JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd.—and their creditors, which include plaintiffs in two Quebec class-action lawsuits as well as provincial and territorial governments.
It was unanimously approved by creditors in December and faced its final hurdle–approval from the court—over several days of hearings that began late last month.
The plan calls for the companies to pay more than $24 billion to provinces and territories over about two decades, while plaintiffs in two class-action lawsuits in Quebec will get more than $4 billion to split between them.
Another $2.5 billion will go to compensate Canadian smokers not included in the lawsuits, and more than $1 billion will go to a foundation to fight tobacco-related diseases. The money for the foundation also includes $131 million taken from the amount allocated to the Quebec plaintiffs.
