Tobacco Giants Seek Extension on Legal Proceedings: Settlement Talks with 100,000 Smokers at Stake
Three major tobacco companies are seeking to extend a court order that has suspended legal proceedings against them as they continue negotiations on a settlement with creditors in a high-profile case. The case involves an order for the companies to pay billions to over 100,000 smokers and their families.
The companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd. — have filed documents in an Ontario court requesting an extension of the stay on legal actions until March 2025. The request was initially scheduled for a hearing on Tuesday but has been postponed to October 31, with the current stay extended until then. The previous order was set to expire today.
The legal suspension was first granted in 2019, following the companies’ loss of an appeal in a landmark Quebec lawsuit. The stay is intended to preserve the status quo while the tobacco companies negotiate a comprehensive settlement with class-action members and other creditors, including provincial governments seeking compensation for healthcare costs related to smoking.
The stay, initially meant to last only a few months, has now been renewed more than a dozen times. Settlement negotiations have remained confidential throughout the process, which has been ongoing for more than five years.
Several health advocacy groups have raised concerns over the delays and lack of transparency, arguing that Canada risks missing a significant opportunity to enforce stronger regulations and smoking reduction initiatives. Some critics further contend that the creditor protection process in this case prioritizes industry viability over public health.
The tobacco companies sought creditor protection in Ontario after Quebec’s Court of Appeal ordered them to pay over $15 billion to approximately 100,000 Quebecers involved in two class-action lawsuits. The cases represented individuals who started smoking between 1950 and 1998 and either developed health issues or became addicted, as well as their heirs.
Court documents from last year indicate that hundreds of class-action members have passed away since the creditor protection process began.
Source: Canadian Press
