Ontario court approves historic $32.5B tobacco settlement
An Ontario court has approved a historic $32.5 billion settlement that will see three major tobacco companies compensate provinces, territories and ex-smokers in Canada.
In a ruling released today, Ontario Superior Court Chief Justice Geoffrey Morawetz called the approval a “momentous achievement in Canadian restructuring history.”
The settlement was first proposed in October after years of mediation between the companies – JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — and their creditors, which include plaintiffs in two Quebec class-action lawsuits as well as provincial and territorial governments.
It was unanimously approved by creditors in December and faced its final hurdle – approval from the court – over several days of hearings that began late last month.