More details expected on proposed deal that would see tobacco giants pay billions [Video]

More details are expected today on a proposed deal that would see the three major companies pay out billions of dollars to provinces and territories as well as smokers and their loved ones.

The companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — sought creditor protection in Ontario in 2019 after Quebec’s highest court upheld a ruling ordering them to pay nearly $15 billion in two class-action lawsuits.

All legal proceedings against the companies were then put on hold so the three could continue to operate as they worked towards a global settlement with their creditors, which include the Quebec plaintiffs and provincial governments looking to recoup smoking-related health-care costs.

A proposed plan of arrangement developed through mediation was filed in court Thursday, and includes nearly $25 billion for provincial and territorial governments as well as more than $4 billion for the Quebec class-action members.

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