The smoke is clearing around a decades-old Canadian lawsuit against Big Tobacco.
In 2015, the Canadian arms of three tobacco giants — British American Tobacco, Philip Morris International, and Japan Tobacco — were found liable for concealing the deadly effects of cigarettes, leading to diseases for ~100,000 Quebecers between 1950 and 1998.
The case grew to involve other provinces and bodies, and this week the companies finally proposed a settlement valued at a staggering $32.5 billion. Here’s how it shakes out:
- Almost $25 billion for provinces and territories to compensate for healthcare costs wrought by smoking.
- Over $4 billion for the Québec smokers part of the original suit and their descendants, with plaintiffs eligible for up to $100,000.
- Another ~$2.5 billion for other Canadian smokers diagnosed with specified diseases between March 2015 and March 2019, with plaintiffs eligible for up to $60,000.
Why it matters: Besides the U.S., Canada is the country with the most lawsuits filed against tobacco firms. This settlement, which one lawyer called “historic" for its dual compensation of smokers and governments, could set a precedent for future litigation.
What’s next: Claimants will vote in December on whether to accept the plan in December. They might not vote for it, as it doesn’t include tobacco-use reduction measures or the public disclosure of corporate documents, a demand of some stakeholders in the suit.—QH