The payments from JTI-Macdonald, Rothmans, Benson & Hedges and Imperial Tobacco Canada would resolve a lengthy legal case alleging the four companies did not sufficiently warn customers of the health risks posed by use of their products. (The Logic)
Talking point: The proposal is “historic” because it would compensate both smokers and governments, Bruce W. Johnston, a lawyer for plaintiffs in a Quebec class action, told the CBC. The legal battle began in 1998 and the proposed settlement arises from creditor protection sought by the companies in early 2019, after losing an appeal in Quebec. The tobacco companies are proposing to pay close to $25 billion to Canada’s 10 provinces and three territories, another approximately $4 billion to Quebec smokers and their families, and more than $2.5 billion for smokers in other provinces and territories. The size of the proposed settlement is notable: In 2023, Purdue Canada agreed to pay Canada’s provinces and territories $150 million for its alleged liability in overdoses from its opioid pain medications.