Canadian cigarette companies declare insolvency after being sentenced

Over the past twenty years, various legal actions have been taken by Canadian governments against the tobacco industry, in order for it to recover the health costs caused by the tobacco epidemic, knowingly spread by cigarette companies. The objectives of these actions are multiple: to obtain justice for the tobacco industry's predatory policy, to compensate taxpayers for the exorbitant costs generated by smoking, to make public the actions of cigarette companies, and to protect new generations by working to end a trade that is harmful to the health of Canadians. In March 2019, the tobacco industry was ordered by the Quebec Court of Appeal to pay a fine of 13 billion Canadian dollars to sick smokers in the province.[1]. However, tobacco companies were able to benefit from the Companies' Creditors Arrangement Act (CCAA), allowing them to declare their insolvency, in order to suspend proceedings, and thus force the stakeholders to enter into negotiations for a "global settlement". It is particularly worrying that the negotiations between the tobacco companies and the government are being held behind closed doors, when public health interests would require hearings for the obvious sake of transparency on such a crucial issue. Canadian companies and their global owners are thus facing a financial claim of $500 billion from the Canadian provinces. However, the former are objectively unable to reimburse the financial compensation demanded. Thus, the tobacco industry appears to be an irresponsible industry, in the strict sense of the term, that is to say, incapable of assuming the costs that its activity entails. ©Generation Without Tobacco

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[1] Cynthia CALLARD, Flory DOUCAS, The Peterborough Examiner, “ It's time to end the tobacco industry as we know it today », 02/19/2020 https://www.thepeterboroughexaminer.com/opinion-story/9858900-it-s-time-to-end-the-tobacco-industry-as-we-know-it-today/ https://ici.radio-canada.ca/nouvelle/1155772/quebec-cour-superieure-cigarettes-tabac-cancer-fumeurs | ©National Committee Against Smoking |