Landmark C$32.5 Billion Resolution of Tobacco Litigation Approved by Ontario Court

A decades-long legal battle involving the tobacco industry has concluded with court approval of a C$32.5 billion resolution pursuant to a Plan of Compromise and Arrangement under the Companies' Creditors Arrangement Act. The resolution was approved by the Ontario Superior Court on March 6, 2025, and was called a “momentous achievement in Canadian restructuring history” by Chief Justice Geoffrey Morawetz. 

The resolution provides compensation for smoking-related government healthcare costs, as well compensation for injured smokers and a C$1 billion foundation to fund research into smoking-related disease. The resolution is the largest of its kind in Canadian history and the third largest globally.

Bennett Jones acted for a consortium of six provincial and three territorial governments to recover smoking-related healthcare costs.

The Bennett Jones team was led by Michael Eizenga (Class Action Litigation) and included Jesse Mighton and Preet Gill (Restructuring & Insolvency).