ARTICLE
18 March 2025

Landmark C$32.5 Billion Resolution Of Tobacco Litigation Approved By Ontario Court

BJ
Bennett Jones LLP

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Bennett Jones is one of Canada's premier business law firms and home to 500 lawyers and business advisors. With deep experience in complex transactions and litigation matters, the firm is well equipped to advise businesses and investors with Canadian ventures, and connect Canadian businesses and investors with opportunities around the world.
A decades-long legal battle involving the tobacco industry has concluded with court approval of a C$32.5 billion resolution pursuant to a Plan of Compromise and Arrangement under the Companies' Creditors Arrangement Act.
Canada Litigation, Mediation & Arbitration

A decades-long legal battle involving the tobacco industry has concluded with court approval of a C$32.5 billion resolution pursuant to a Plan of Compromise and Arrangement under the Companies' Creditors Arrangement Act. The resolution was approved by the Ontario Superior Court on March 6, 2025, and was called a "momentous achievement in restructuring history" by Chief Justice Geoffrey Morawetz.

The resolution provides compensation for smoking-related government healthcare costs, as well compensation for injured smokers and a C$1 billion foundation to fund research into smoking-related disease. The resolution is the largest of its kind in Canadian history and the third largest globally.

Bennett Jones acted for a consortium of six provincial and three territorial governments to recover smoking-related healthcare costs.

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