Tobacco giants would pay out $32.5B in 'historic' proposed deal

Summary

A proposed settlement could see three major tobacco companies pay $32.5 billion to provinces, territories, and claimants in Canada, stemming from decades-long legal battles. The funds would primarily support healthcare systems and offer compensation to affected smokers. While some groups praise the compensation aspect, they express concern over the lack of accountability measures against the companies, urging for better regulation of tobacco marketing. Lawyers and family members involved hope for further advocacy before the proposal is finalized, emphasizing the importance of justice over monetary compensation. Approval from multiple parties is required before any funds can be disbursed.

Takeaways

• 💰 A proposed settlement involves three major tobacco companies paying a total of $32.5 billion.
• 🏥 Approximately $25 billion of the settlement is designated for provincial and territorial health care systems.
• 📜 The settlement is the result of long-standing legal battles dating back to the late 1990s, including multiple class action lawsuits.
• ⚖️ Compensation of about $4 billion would go to claimants in Quebec, with $2.5 billion for claimants in other parts of Canada.
• 🏆 This proposed settlement is described as unprecedented and historic, marking a significant step in tobacco litigation.
• 🛑 The tobacco companies would not be required to admit any liability or issue apologies under the proposal.
• 📅 Court hearings and approvals from various claimants and provinces are still required before the settlement can be finalized.
• 🔍 Advocacy groups express mixed reactions, highlighting both the positive compensation aspect and the lack of changes in tobacco marketing practices.
• 🗣️ Some experts believe this proposal could be a missed opportunity for more comprehensive tobacco regulation and prevention efforts.
• 📅 If approved, the expectation is that compensation could start flowing to eligible claimants early next year.

Q & A

What is the proposed settlement involving the tobacco companies about?

The proposed settlement involves three major tobacco companies paying a total of $32.5 billion to provinces, territories, and claimants, stemming from decades-long legal battles regarding the health impacts of tobacco.

Which tobacco companies are involved in this proposed settlement?

The three companies involved are JTI, McDonald Rothman's Benson and Hedges, and Imperial Tobacco Canada.

How will the $32.5 billion be allocated?

$25 billion would go to provinces and territories for their healthcare systems, about $4 billion to claimants in Quebec, and approximately $2.5 billion to claimants in other parts of Canada, with an additional $1 billion for a foundation for cancer and smoking-related research.

Are the tobacco companies admitting liability in this proposed settlement?

No, the proposed settlement does not require the tobacco companies to admit any liability or issue an apology.

What has been the reaction to this proposed settlement?

The reaction has been mixed. While some see the compensation aspect positively, others believe it misses the opportunity to impose stricter regulations on how tobacco companies market their products.

What concerns do health advocates have regarding this proposal?

Health advocates are concerned that the proposal allows tobacco companies to continue profiting from addictive products without sufficient regulatory changes to protect public health.

What do some lawyers for the provinces and territories think about the proposal?

Some lawyers for the provinces and territories involved in the lawsuit support the proposal and believe it should be approved, but there are still steps that need to be completed.

What is the significance of this settlement in Canadian history?

If approved, it would be considered an unprecedented and historic agreement, marking a major milestone in the long-standing legal battles against the tobacco industry.

What are the next steps for this proposed settlement to be finalized?

The proposal must be approved by the various claimants, the provinces and territories, and ultimately the court itself.

What is the hope for when the compensation money would start flowing?

The hope is that if the proposal is approved, the compensation money could start flowing early next year.