JTI-Macdonald Corp. opposes a proposed multi-billion-dollar settlement of long-running tobacco litigation announced earlier this month, reports Financial Post, citing a company filing made to an Ontario court.
As part of a court-appointed mediator’s plan, Canada’s three leading cigarette manufacturers would pay CAD32.5 billion ($23.6 billion) to provinces and territories and more than CAD4 billion to tens of thousands of Quebec smokers and their heirs.
Before it can be implemented, the proposed plan must be voted on by creditors, which include plaintiffs in two class-action lawsuits in Quebec as well as provincial governments seeking to recover smoking-related health costs. It must also be approved by the court.
In its court filing, JTI-Macdonald Corp. indicated it does not support the proposal due to “critical outstanding issues.”