A new proposal has emerged for Canada’s three largest tobacco companies to pay $32.5 billion in compensation to provinces, territories, and smokers.
Under the deal, $24.7 billion would go to provinces and territories, $6.6 billion to individuals affected by smoking-related illnesses, and $1 billion to a national foundation for cancer research.
However, legal and procedural hurdles still need to be addressed before payments can be made.
The settlement stems from a series of lawsuits, with a significant portion intended to resolve class-action claims from Quebec smokers. A court hearing is scheduled for October 31, with a final vote anticipated by December 12.
Final approval could occur in early 2025 if enough claimants support the deal.
The settlement follows legal action initiated by all Canadian provinces and territories, beginning in the late 1990s, to recover health care costs related to tobacco use.
Tens of thousands of Canadians are expected to receive compensation, with some individuals potentially receiving as much as $60,000.
Advocates, including the Canadian Cancer Society, argue that the deal lacks sufficient measures to reduce smoking rates and restrict the operations of tobacco companies.
Distribution of Funds:
$24.8 billion will go to provinces and territories, with Ontario receiving $7.1 billion and Quebec $6.7 billion.
$4.25 billion will go to members of two class-action lawsuits in Quebec, including nearly 100,000 individuals from the Blais-Létourneau case.
$2.5 billion will be allocated to other Canadians.
A $1 billion foundation will be created for individuals not receiving direct payments
Concerns remain over whether the settlement will adequately cover healthcare costs or reduce smoking rates.
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