$32.5B settlement with tobacco giants approved by creditors, lawyer says

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 companies' creditors.

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 companies’ 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 — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — 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.

André Lespérance, who represents plaintiffs in one of the Quebec lawsuits, said creditors overwhelmingly supported the proposal.

“We’re not surprised, but we’re glad the creditors are united right now to see this plan approved,” 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 Lespérance said he’s optimistic the proposed deal will clear that hurdle as well.

“I think we’re really close to the end,” 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 “bring this long-fought battle for justice and truth to its conclusion.”