Ontario court approves landmark $32.5B tobacco settlement

Tobacco
TobaccoImage courtesy of Smokes Canada
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A $32.5 billion settlement between major tobacco companies and Canadian provinces, territories, and former smokers has received final approval from an Ontario court. 

This decision from Ontario Superior Court Chief Justice Geoffrey Morawetz ends a legal battle that has lasted for decades. 

The settlement requires three tobacco companies to pay compensation to those impacted by smoking-related illnesses.

Chief Justice Morawetz called the agreement a “momentous achievement” in Canadian legal history in his ruling on Thursday. 

Morawetz recognized the long wait for justice, especially for class-action members whose case began in the late 1990s.

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Many claimants passed away during the long legal process. 

“The wait, for many, has been intolerable. That wait ends today,” said Morawetz.

The settlement follows years of mediation and involves JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd. 

The companies will pay over $24 billion to provinces and territories to help recover healthcare costs related to smoking. 

Quebec class-action lawsuit members will receive more than $4 billion. 

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Another $2.5 billion is set aside for other Canadian smokers, and over $1 billion will go to a foundation dedicated to fighting tobacco-related diseases.

Dominique Claveau, interim executive director of the Conseil quebecois sur le tabac et la sante, a plaintiff in one lawsuit, welcomed the decision. 

She said it “puts an end to years of uncertainty” and brings justice to tobacco victims after a long fight. 

British Columbia Attorney General Niki Sharma emphasized the settlement’s importance in holding companies accountable for “corporate wrongdoing.” 

The payout marks a significant step towards compensating those harmed by tobacco.

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