Minister of Health announces milestone agreement in tobacco litigation

Today, Minister of Health John Main released the following statement: 

“We are pleased to share an important update in our long legal battle with tobacco companies. All creditors, including provincial and territorial governments and class action plaintiffs, have voted to accept the Mediator’s and Monitor’s Plan of Compromise and Arrangement (the “Plan”) under the Companies’ Creditors Arrangement Act (CCAA).

The Plan, valued at over $32 billion, will provide compensation to individual smokers, critical funding for Canada’s health care system, and support for treatment research.

While not perfect, the Plan marks significant progress and brings us closer to concluding a lengthy legal process. Efforts like education campaigns, tobacco taxes, advertising bans, and public smoking restrictions have been important steps in addressing tobacco use. These measures have had a positive impact, but we remain committed to strengthening anti-smoking policies and supporting healthier choices in all communities.

In Nunavut, we are working to create a healthier future where tobacco use is no longer a risk to our communities. This funding will enhance health care services across the territory and provide better support for Nunavummiut affected by smoking-related illnesses.

Now that the Plan has been proposed to the court and accepted by all creditors, the next steps depend on the tobacco companies’ response. We encourage them to support this fair solution. Regardless of their decision, we are committed to pursuing our claims and recovering health care costs through the courts if necessary.

This is a significant milestone, and we look forward to continuing to protect the health of Canadians.

If you or anyone you know needs help to quit smoking, visit the NU Quits website or visit your local health centre.

Matna.”