Canadian Can Claim $100k in $32.5 Billion Tobacco Settlement: What It Means for Victims and Public Health

After decades of legal battles, a proposed $32.5 billion settlement involving three of Canada’s largest tobacco companies could soon provide compensation to smoking victims and their families. The landmark agreement—currently under review by the Ontario Superior Court—marks a major step in holding tobacco manufacturers accountable for decades of harm.

The Legal Battle: Decades in the Making

This proposed settlement comes more than 25 years after the initial class action lawsuit was filed and nearly a decade after a historic court ruling in favor of victims in Quebec. The case was led by the Quebec Council on Tobacco and Health (QCTH) against tobacco giants JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd.

The companies, after five years of negotiations, submitted a Plan of Arrangement to settle claims across Canada—potentially bringing an end to one of the largest tobacco-related lawsuits in the world.

Ticketmaster’s $6M Class Action Settlement Approved: Find Out If You’re Eligible for a Payout

Dollarama $2.6 Million Class-Action Settlement Approved: Eligibility & Payout

Last Call to Claim WestJet’s $12.5M Baggage Fee Settlement Compensation – Are You Eligible?

Who Is Eligible for Compensation?

If the court approves the agreement, smokers and their families across Canada could receive financial compensation. The plan outlines the following:

Quebec Class-Action Members

• $4.25 billion to compensate victims and their heirs
• Payments of up to $100,000 per individual

Victims Outside Quebec

• $2.5 billion to smokers in other provinces and territories diagnosed with:
  • Lung cancer
  • Throat cancer
  • Chronic obstructive pulmonary disease (COPD)
• Eligible individuals (diagnosed between March 8, 2015, and March 8, 2019) could receive up to $60,000 each

Public Health Initiatives

• $1 billion to establish a charitable foundation dedicated to combating tobacco-related diseases
• $25 billion to be paid over time to provinces and territories to cover healthcare costs related to smoking

Scotiabank Faces Class Action Lawsuit $100 Compensation for Each Customer Affected by Recent Massive Outage

How Canadians Can Claim Up to $375 from the Rogers & Yahoo Class Action Settlement

The Controversy: Critics Say the Settlement Falls Short

While the compensation for victims is being hailed as a victory, public health advocates argue that the settlement does little to curb future tobacco-related harm.

The Canadian Cancer Society’s Response

The Canadian Cancer Society (CCS) has criticized the agreement for failing to include stronger tobacco control measures and has called for several changes:

• Stricter advertising restrictions on tobacco companies
• Mandatory public disclosure of millions of internal tobacco company documents
• Expansion of the foundation’s role to include smoking cessation programs
• No legal protection for tobacco companies against future misconduct

CCS senior policy analyst Rob Cunningham stated, “This settlement fails to support public health efforts to reduce smoking. Tobacco remains the leading cause of cancer deaths in Canada, and this deal does little to prevent future harm.”

Health Organizations Condemn the Deal

Other health organizations, including Action on Smoking & Health, Physicians for a Smoke-Free Canada, and the Quebec Coalition for Tobacco Control, also oppose the settlement, arguing that it allows tobacco companies to continue business as usual.

“Apart from victim compensation, there is little public health benefit in this arrangement,” they said in a joint statement.
“It does not stop tobacco companies from recruiting new smokers through new nicotine products.”

What Happens Next?

The Ontario Superior Court hearings—scheduled from January 29 to February 13, 2025—will determine whether the proposed settlement is approved or revised. If approved, it will be the first settlement of its kind worldwide.

While the agreement represents a financial reckoning for Big Tobacco, critics argue that without stronger public health measures, it may not go far enough in preventing future harm. The final decision will shape the future of tobacco regulation, corporate accountability, and victim compensation in Canada for years to come.