A significant milestone has been reached in the long-standing legal battle with tobacco companies.

All provincial and territorial governments, as well as class action plaintiffs, have voted to accept a plan proposed by a court-appointed mediator. With creditors unified in support of the plan, the provincial government is urging the tobacco companies to accept the proposed agreement.

“Tobacco has harmed far too many people, and tobacco companies have avoided accountability for far too long,” said Premier David Eby. “This is a critical step forward after 20 years of litigation, including five years of mediation, and we urge tobacco companies to take responsibility for their deceptive actions and accept this plan. B.C. has been a leader in standing up to powerful corporations that are hurting people and we will continue to be relentless in pursuing all legal avenues to get justice for those who have been harmed and their loved ones.”

The plan, valued at more than $32 billion, will provide compensation to individuals harmed by the effects of smoking, deliver critical funding for health-care systems across Canada and establish a foundation to support treatment research. B.C. will receive approximately $3.5 billion. This money will be used to invest in cancer treatment and primary care, and research into treatments, as well as to promote smoking cessation.

In 1998, B.C. initiated legal action against the three principal Canadian tobacco manufacturers and their foreign parent corporations to recover the cost of treating tobacco-related diseases caused by the industry’s wrongful conduct. The Province is seeking recovery of health-care costs resulting from what B.C. and other Canadian provinces are alleging is the wrongful conduct of these parties in the manufacture, promotion and sale of tobacco products spanning many decades.

“Tobacco companies’ deceptive activities led to millions of people taking up smoking without knowing the actual consequences,” said Niki Sharma, Attorney General. “This plan offers real progress and essential resources for public health in B.C. It’s time for the tobacco industry to step up and take responsibility for the harm it has caused. This process has gone on far too long and now is the time for resolution.”

The plan will now move to a court hearing scheduled for Jan. 29-31, 2025, when the court will be asked to grant final approval of these plans, marking a pivotal step in this important litigation. The B.C. government remains committed to holding the tobacco industry accountable and advancing public-health initiatives to protect future generations.

Quick Facts:

• The mediator filed his proposed Plans of Arrangement on Oct. 17, 2024.
• British Columbia was the first province to pursue litigation against the three major Canadian tobacco manufacturers and their foreign affiliates.
• The incidence of daily smokers is one-third of what it was in 1990 and one-fifth of what it was in the time period covered by this lawsuit.

Learn More:

For more information about how government is holding companies accountable for hurting people, visit:
https://news.gov.bc.ca/releases/2024PREM0015-000348