Historic Tobacco Compensation Plans Move Forward

On October 17, 2024, the Plans of Arrangement for Imperial Tobacco, Rothmans Benson & Hedges, and JTI MacDonald (“CCAA Plans”) were unveiled, marking a landmark resolution after over five years of intensive mediation. With a total compensation package of $32.5 billion, the CCAA Plans include the Pan-Canadian Claimant (“PCC”) Compensation Plan, which allocates $2.52 billion to eligible tobacco harm victims across Canada.

On December 12, 2024, the CCAA Plans achieved a major milestone, receiving votes of approval from creditors, including the Provinces, Territories, and legal representatives of tobacco harm victims.

What happens next?

A Sanction Hearing is scheduled for January 29 to 31, 2025, where the Court will consider whether to approve the CCAA Plans. If the Court sanctions the Plans, they will come into effect, paving the way for compensation to be distributed to victims who meet the eligibility criteria under the Plans and submit claims by the deadline to be determined at a future date.

Am I eligible for compensation?

For the first time, Canadians diagnosed with Lung Cancer, Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) will be eligible for direct financial compensation from the Tobacco Companies.

• Pan-Canadian Claimants: $2.52 billion has been earmarked for Canadian smokers who smoked at least 87,600 cigarettes sold by the Tobacco Companies between January 1950 and November 1998 and were diagnosed with Lung Cancer, Throat Cancer, or Emphysema/COPD (GOLD Grade III or IV) between March 8, 2015, and March 8, 2019 (inclusive), as outlined in the PCC Compensation Plan and on the official webpage for Pan-Canadian Claimants – www.TobaccoClaimsCanada.ca.
• Quebec Class Actions: $4.25 billion has been allocated to Quebec smokers who are part of the successful Quebec class actions and meet eligibility criteria as outlined in the Quebec Class Action Administration Plan and on the official webpage for Quebec Class Members – www.recourstabac.com.

Smokers who do not meet the specific criteria for direct compensation will still benefit indirectly through the Cy-près Foundation, which is allocated $1 billion under the CCAA Plans to support research, programs, and initiatives aimed at improving outcomes for tobacco-related diseases.

Epiq – The Official Agent and Claims Administrator for PCCs

The Law Practice of Wagner & Associates, Inc. (“Wagners”) was appointed by the Court in 2019 as PCC Representative Counsel to represent the interests of Pan-Canadian Claimants in the CCAA Proceedings and Epiq Class Action Services Canada, Inc, is the official Agent to PCC Representative Counsel.

Epiq’s role includes:

• Helping claimants with submitting their claims, at no cost to them, and navigating the claims process through its role as Agent to PCC Representative Counsel.
• If the CCAA Plans are approved after the Sanction Hearing in January of 2025, a separate arm of Epiq will act as a neutral Claims Administrator, processing claims, ruling on claim eligibility and distributing compensation to claimants.

Will I need a lawyer to file a claim?

If the Plans are approved, a Court-approved notice will be issued providing details about the claims process and applicable deadlines. Eligible tobacco victims will have a defined period to submit claims for compensation under the Plans. Claimants are encouraged to monitor updates to ensure they meet the applicable timelines.

The claims process under the PCC Compensation Plan is designed to be straightforward so that claimants can submit their claims directly for consideration and approval by the Claims Administrator. Epiq, as the official Claims Agent, will provide free assistance to claimants. Claimants are not required to hire independent legal representation to file their claims. If a claimant chooses to obtain independent legal representation, this will likely reduce the compensation they receive.

Where can I get more information?

Epiq has an official website www.TobaccoClaimsCanada.ca where you can get free, accurate, and legitimate information about the proposed claims process and register to receive important future updates.  You can also contact Epiq directly for more information:

• Email: [email protected]
• Phone: 1-888-482-5852

The votes by creditors in support of the CCAA Plans represents a significant step toward justice for victims of tobacco harm across Canada. If the Court sanctions the Plans in January, eligible claimants will be able to submit claims and receive compensation through a streamlined, fair, and accessible process overseen by Epiq.

SOURCE: Epiq Class Action Services Canada, Inc