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CANADA: Sentenced to pay billions, tobacco companies seek protection!

CANADA: Sentenced to pay billions, tobacco companies seek protection!

After several years of trials, several tobacco companies have been ordered to pay several billion Canadian dollars to tens of thousands of tobacco victims. If on March 1 the Quebec Court of Appeal upheld the Superior Court's decision, today tobacco companies are trying to protect themselves from creditors.


Imperial Tobacco Canada, the most important tobacco company in Canada, which manufactures the Du Maurier, John Player, Pall Mall and Marlboro brands in particular, thus becomes the second major player in the industry to place itself under the protection of the Companies' Creditors Arrangement Act (CCAA). Last Friday, JTI-Macdonald opened the ball by announcing that he was granted protection under the CCAA.

Tobacco companies believe they have no other choice but to protect themselves from their creditors after the Quebec Court of Appeal upheld a decision of the Quebec Superior Court on March 1. By virtue of this decision, Imperial Tobacco, Rothmans Benson & Hedges et JTI-Macdonald must pay a maximum of 13,6 billion Canadian dollars to some 100 000 victims of smoking.

The portion of this sum that Imperial Tobacco will have to pay is 9,2 billion.

«This protection will allow the Company to continue its operations in the normal course of business and thereby generate the cash flow required to pay its employees, suppliers and the various levels of government", Said Imperial Tobacco in a statement announcing his bankruptcy Tuesday night.

Imperial Tobacco said it has paid about 3,8 $ billions in taxes to the various governments in 2018.

«By seeking protection under the CCAA, the Company will also attempt to resolve all tobacco-related disputes in Canada through an efficient and court-supervised process.”The company continued.

In the aftermath of the Court of Appeal's decision, the cigarette manufacturers announced their intention to continue their legal fight to the Supreme Court of Canada. The tobacco giants believe that their customers were well aware of the risks to which they were exposed by smoking, so they should not be held responsible for their health problems.

«Consumers and Canadian governments have known about the risks associated with smoking for decades, and the Company has always operated and sold its legal products within the regulatory framework dictated by governments.Said Imperial Tobacco Canada in a statement.

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Passionate about journalism, I decided to join the editorial team of in 2017 in order to mainly deal with vape news in North America (Canada, United States).