Imperial joins JTI-Macdonald Corp., raising question of whether Quebec plaintiffs entitled to $13.5-billion in damages will receive payment after tobacco giants were found to have concealed the health risks of smoking from the public
Two Canadian tobacco giants have entered creditor protection after losing a landmark legal battle in Quebec, raising questions about whether plaintiffs will receive billions in damages they are owed and if other lawsuits against the companies will proceed.
Earlier this month, the Quebec Court of Appeal upheld a 2015 ruling in a lower court that found the tobacco companies concealed the health risks of smoking from the public. The decision means the three companies have to pay about $13.5-billion in damages to about 100,000 Quebec smokers who were harmed by cigarettes or who couldn’t quit smoking. It’s believed to be the biggest award in Canadian history.
Tobacco control advocates have criticized the suspension and say they don’t understand why legal proceedings against all of the companies are being temporarily stopped. They fear creditor protection will allow the companies to avoid paying penalties and indefinitely delay other legal proceedings. JTI-Macdonald issued a news release stating the “extraordinary judgment” in Quebec forced the company to seek creditor protection in order to avoid job losses and continue normal business activities. Imperial Tobacco issued a statement Tuesday saying it decided to seek creditor protection as a result of the Quebec judgment and the fact that another co-defendant had entered creditor protection.
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