Ontario Court Grants Approval for Landmark $32.5B Tobacco Settlement

Ontario Court Approves Landmark $32.5B Tobacco Settlement

An Ontario court has approved a historic $32.5 billion settlement requiring three major tobacco companies to compensate provinces, territories, and former smokers across Canada.

In a ruling released today, Ontario Superior Court Chief Justice Geoffrey Morawetz described the approval as a “momentous achievement in Canadian restructuring history.”

The settlement, initially proposed in October, follows years of mediation between JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd., and their creditors—including plaintiffs in two Quebec class-action lawsuits and provincial and territorial governments.

Unanimously approved by creditors in December, the agreement cleared its final hurdle after several days of court hearings that began late last month.

Under the settlement terms, the companies will pay over $24 billion to provinces and territories over approximately 20 years. Plaintiffs in the Quebec class-action lawsuits will receive more than $4 billion, while an additional $2.5 billion will compensate other Canadian smokers not covered by the lawsuits. More than $1 billion will also fund a foundation dedicated to combating tobacco-related diseases, with $131 million coming from the Quebec plaintiffs’ allocation.