QCTH-Blais Class Action against the Tobacco Companies : A plan of arrangement allowing compensation to be paid to tobacco victims has finally been filed

Quebec victims to share nearly $4.3 billion in compensation

MONTRÉAL, Oct. 17, 2024 /CNW/ - The Quebec Council on Tobacco and Health (QCTH) announces the filing of a proposed plan of arrangement for the Tobacco Companies under the Companies' Creditors Arrangement Act (CCAA). More than 25 years after a class action was filed against the three (3) major Canadian tobacco manufacturers for the harm they caused, and almost 10 years after a historic victory for Quebec's 100,000 smoking victims, the plan will, if approved, enable the distribution of substantial financial compensation to victims and their heirs and heirs' heirs.

Full details of the plan and next steps will be available at recourstabac.com.

Substantial amounts to benefit victims

The plan, which has just been filed, must still be voted on by creditors on December 12th, and approved by the Ontario Superior Court of Justice at a hearing to be held in Toronto at the start of 2025 before they can be implemented.  Under the terms of the plan, the Tobacco companies will pay $4.250 billion (the "Quebec Settlement Amount") to settle the claims of Quebec's QCTH-Blais class action victims.

Subject to availability, depending in particular on the number of claims filed, these Quebec victims (and, where applicable, their heirs) will be entitled to financial compensation of up to $100,000 each, based on the principal amount awarded to them in judgments handed down in Quebec. Moreover, on the basis of the principles recognized when the appeal of the QCTH-Blais class action was won, the tobacco companies will pay $2.521 billion to Canadian and Canadian territories victims diagnosed with lung cancer, throat cancer or COPD between March 8th, 2015 and March 8th, 2019, with compensation of up to $60,000 each.

This is a remarkable and historic achievement on behalf of Quebec victims, although it has taken many years to reach this result due to the countless and unprecedented challenges faced by the group's lawyers throughout the Quebec litigation and CCAA proceedings. Following approval of the plan, a notice will be prepared and widely distributed to explain to victims how to receive their compensation.

A foundation to fight tobacco-related diseases

Furthermore, an amount of $1 billion, with a contribution of $131 million from the Letourneau class action settlement in Quebec will be donated to a charitable foundation that will be created to provide indirect benefits to Canadians by funding projects, programs and initiatives with a rational link to tobacco-related diseases.

$24 billion for the provinces and territories

The plan would also put an end to legal proceedings initiated by provinces and territories against any tobacco companies and their foreign parent companies in order to recover healthcare costs related to tobacco use. The plan also stipulates for the provinces and territories to receive over $24 billion over time, including approximately $6 billion upon implementation of the plan.

The plan of arrangement is the result of extraordinary efforts, highly complex negotiations and consultation among the stakeholders involved, and was achieved through the tireless initiative and determination of the court-appointed mediator, the Honourable Warren Winkler, and the active participation of the monitors.

The first settlement of this kind worldwide

If approved by creditors and the CCAA court, the plan will result in direct compensation for victims of tobacco on a collective basis, for the first time worldwide. This historic realization is the result of the victims patience, the exemplary dedication of various stakeholders, such as the Quebec Council on Tobacco and Health (QCTH), the judicial competence and the unprecedented and unwavering commitment of the lawyers. This plan represents the last stage in the historic legal battle waged by the Quebec Council on Tobacco and Health (QCTH), the tobacco victims and their lawyers against the companies that have lied and hid the dangers and harmful effects of cigarettes.

Press conference in Montreal on October 18, 2024 at 10 a.m. E.D.T.

The Quebec Council on Tobacco and Health (QCTH) invites media representatives to a press conference to present and discuss the plan. The event will be attended by Ms. Blais, widow of the plaintiff in the class action, as well as CQTS lawyers and spokespersons.

SOURCE Quebec Council on Tobacco and Health

For more information or media requests : Victor Henriquez, Public stratégies et conseils, 514-377-1102, [email protected]; Delia Crosina, Public stratégies et conseils, 438-493-3443, [email protected].