Canadian Tobacco Proceedings
Disclaimer: Please note that the information provided on this page is based on the current CCAA Plan and PCC Compensation Plan, which may be subject to change. All aspects of the CCAA Plan are subject to approval by the Court, and the details may be updated as the process evolves. While we will continue to update this page, we recommend checking the official PCC Compensation website and registering for their updates.
Page last updated: February 5, 2025
Update: February 3, 2025
A Stay Extension Order was issued on January 31, 2025, extending the stay of proceedings up to and including March 3, 2025.
Background
The Canadian Tobacco Proceedings are a series of lawsuits and settlements against big tobacco companies in Canada. These cases focus on the health problems caused by smoking and aim to get money to help people affected and cover healthcare costs.
In 1998, British Columbia became the first province to sue tobacco companies to recover the costs of treating smoking-related diseases. Soon, all other provinces did the same. At the same time, two large lawsuits were filed in Quebec on behalf of about 100,000 smokers with lung and throat cancer or emphysema. They claimed that tobacco companies knew smoking was dangerous but didn’t warn people properly.
In 2015, a court in Quebec ruled in favour of the smokers and ordered three major tobacco companies—JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd.—to pay $15.6 billion in damages. This decision was confirmed in 2019, and the companies then sought financial protection while working on a settlement.
Proposed Global Settlement Amount
After more than five years of mediation, a proposed Global Settlement of $32.5 billion was announced on October 17, 2024. The allocation of the funds includes:
$24.725 billion will be distributed among Canadian provinces and territories to recover healthcare costs related to smoking (Manitoba may receive 4.5252% of these funds).
$4.25 billion was designated for members of the Quebec class-action lawsuits (minus $131 million allocated to the Foundation).
$2.521 billion was allocated to Canadian victims from provinces outside Quebec.
$1 billion to establish the “Cy-près Foundation to fund research, programs, and initiatives focused on improving outcomes in tobacco-related diseases.
The remaining is allocated among several groups, including Tobacco Producers and administrative reserve funds.
On December 12, 2024, creditors, including provincial governments and class-action plaintiffs, voted to approve the proposed settlement plan.
The court hearing to consider approving the proposed settlement began Wednesday, January 29. There will be up to 9 days of court hearings, if necessary: January 29-31, February 3-5, and February 11-13. The hearing will be before the Ontario Superior Court in Toronto presided by Ontario Superior Court Chief Justice Geoffrey Morawetz.
The Pan-Canadian Claimant Compensation Plan
The Pan-Canadian Claimant (PCC) Compensation Plan allocates $2.52 billion to compensate eligible individuals across Canada who have suffered from specific tobacco-related diseases.
You can visit the official website for the PCC Compensation Plan at www.tobaccoclaimscanada.ca. This is the official and only website to make a claim under the plan.
Who is Eligible to Receive Compensation?
The PCC Compensation Plan will provide direct compensation to individuals who fulfill the following PCC Eligibility Criteria:
(a) On the date that a claimant submits their claim to the PCC Compensation Plan:
if the claimant is alive, they must reside in a Province or Territory in Canada, or
if the claimant is deceased, they must have resided in a Province or Territory in Canada on the date of their death;
(b) The claimant was alive on March 8, 2019;
(c) Between January 1, 1950 and November 20, 1998, the claimant smoked a minimum of twelve pack-years of cigarettes manufactured by the Applicants;
(d) Between March 8, 2015 and March 8, 2019 (inclusive of those dates) the claimant was diagnosed with:
A primary lung cancer,
Squamous cell carcinoma of the larynx, oropharynx or hypopharynx, or
Chronic obstructive pulmonary disease (GOLD Grades III and IV); and,
(e) On the date of the diagnosis with a PCC Compensable Disease the claimant resided in a Province or Territory in Canada
How can I determine how many cigarettes I’ve smoked? In other words, what does “twelve pack-years" mean and how can I calculate it?
"Twelve Pack-Years of cigarettes," which is equal to 87,600 cigarettes, is the minimum amount of the Tobacco Companies’ cigarettes that a Pan-Canadian Claimant is required to have smoked between January 1, 1950 and November 20, 1998.
This calculator will assist you in calculating the number of pack-years that you smoked.
How much money could I receive from the PCC Compensation Plan?
The PCC Compensation Plan provides money to Pan-Canadian Claimants who meet the PCC Eligibility Criteria and who submit their claim and required documents to the Claims Administrator by the deadline, which has not yet been set by the Court.
The amount of money a Pan-Canadian Claimant may qualify for will depend upon several factors, including:
the number of individuals in Canada who meet the PCC Eligibility Criteria,
the type of diagnosis,
and when the Pan-Canadian Claimant started smoking.
An Eligible PCC-Claimant will receive money for the compensable disease they have been diagnosed with that qualifies for the highest payment under the PCC Compensation Plan.
The payments to PCC-Claimants who meet all PCC Eligibility Criteria will be up to, but may be less than, the maximum amounts shown in the table below:
| Disease(s) with which PCC-Claimant was diagnosed | Individual Payment (or such other amount as may be determined by the Claims Administrator to be available for the subclass of PCC-Claimants; quantum will vary based upon the actual take-up rate and other factors) | |
|---|---|---|
| Compensation for PCC-Claimants who started smoking before January 1, 1976 | Compensation for PCC-Claimants who started smoking on or after January 1, 1976 | |
| Emphysema/COPD (GOLD Grade III or IV) | $18,000 | $14,400 |
| Lung Cancer | $60,000 | $48,000 |
| Throat Cancer | $60,000 | $48,000 |
How do I submit a claim under the PCC Compensation Plan?
The Court has not yet approved the PCC Compensation Plan.
You cannot submit a claim for compensation under the PCC Compensation Plan unless and until it is approved by the Court.
You can visit the official PCC Compensation Plan registration page to sign up to receive updates on the Pan-Canadian Tobacco Proceedings as they become available.
Do I need to hire a lawyer to submit a claim?
No. The PCC Compensation Plan is specifically designed so that PCC-Claimants and their Representatives will be able to complete and submit Claim Forms without hiring third-party lawyers or other service providers offering form completion or submission services.
If a claimant chooses to obtain independent legal representation, this will likely reduce the compensation they receive.
I have more questions. Where can I find more information?
Please visit the official PCC Compensation Plan website to find the most up-to-date information, including:
How to submit a claim
How to register for updates
Frequently asked questions
Resources
Plan of Arrangement (last updated Dec 5, 2024)