Ontario court approves $32B tobacco settlement

An Ontario court has approved a $32-billion settlement that will see three major tobacco companies compensate provinces, territories and ex-smokers for smoking-related harms and healthcare costs.

Imperial Tobacco Canada Ltd., JTI-Macdonald Corp., and Rothmans, Benson & Hedges will pay more than $24-billion to provinces and territories over the next two decades.

Ontario Superior Court Chief Justice Geoffrey Morawetz hailed the milestone as a “momentous achievement in Canadian restructuring history.”

Plaintiffs in two Quebec class-action lawsuits will split more than $4-billion.

The settlement was first proposed in October after years of mediation between tobacco companies and their creditors.

It was unanimously approved by creditors in December. Yesterday’s court approval was the final hurdle.

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