Tobacco CCAA Proceedings

On May 27, 2015, the Honorable Brian Riordan (“Justice Riordan”) of the Superior Court of Quebec rendered his judgment (the "Riordan Judgment") in two class actions instituted in the names of the class representative plaintiffs, Mr. Jean-Yves Blais (now deceased) and Ms. Cécilia Létourneau, against three tobacco companies: JTI-MacDonald Corp., Imperial Tobacco Canada Ltée and Rothmans, Benson & Hedges Inc. (together, the “Tobacco Companies”).

Justice Riordan held the Tobacco Companies liable for the damages suffered by the members of the class actions pursuant to the provisions of the Civil Code of Quebec, the Consumer Protection Act and the Quebec Charter of Human Rights and Freedoms. The Tobacco Companies were found to have used deceptive and misleading marketing strategies and to have failed to adequately warn consumers of the inherent risks in using tobacco products, which increased the likelihood of, among other things, cancer and emphysema. As well, the Tobacco Companies failed to warn consumers of the addictive nature of nicotine in cigarettes. The Tobacco Companies were found to have disregarded the health of their consumers in order to generate massive profits. As such, Justice Riordan condemned the Tobacco Companies to solidarily pay moral and punitive damages to the class action members. With interest and the additional indemnity, the award was close to $15.5 billion.

Prior to the Riordan Judgment being rendered, class action counsel, Trudel Johnston & Lespérance, Kugler Kandestin and De Grandpré Chait, engaged Fishman Flanz Meland Paquin LLP ("FFMP") to assist them with issues that would arise following the anticipated judgment, including insolvency issues, insurance claims and matters related to the execution of a successful final judgment.

The Tobacco Companies appealed the Riordan Judgment and were ordered by the Quebec Court of Appeal (the “QCA”) to furnish nearly $1 billion of funds as security for the appeal. On March 1, 2019, five judges of the QCA unanimously upheld Justice Riordan’s decision, with minor modifications.

Shortly thereafter, the Tobacco Companies sought protection before the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (“CCAA”). FFMP has been acting in the CCAA proceedings as counsel for the Quebec Class Action Plaintiffs, and lawyers of the firm have appeared and pleaded before the assigned CCAA judge, the Honourable Thomas McEwen and subsequently Chief Justice Geoffrey B. Morawetz, on multiple occasions.

During the CCAA proceedings, FFMP played an integral role representing the Quebec Class Action Plaintiffs. We were central to the success of the six-year court-ordered mediation process involving the Tobacco Companies and other creditors that ultimately led to the filing of the historic CCAA Plans and the global settlement of all tobacco claims in Canada for $32.5 billion.

The CCAA Plans allocate $4.25 billion to the Quebec Class Action Plaintiffs, with $4.119 billion being allocated to satisfy claims of Quebec class members suffering from certain tobacco-related diseases, and $131 million being contributed to a non-profit foundation to fund initiatives aimed at improving outcomes for Canadians suffering from tobacco-related diseases. The class members that we represent achieved the highest percentage recovery on their asserted claims as compared to all of the other creditor groups in the CCAA proceedings.

The CCAA Plans were unanimously approved by the creditors on December 12, 2024, sanctioned by the CCAA Court on March 6, 2025, and implemented on August 29, 2025.

A novel claims and distribution process that we were instrumental in developing has been established to assist Quebec class members to assert claims for compensation. This process is intended to be non-adversarial, simple and cost-free to individual claimants. To help achieve this goal, Quebec Class Counsel have engaged, at their own cost, Proactio (a division of Raymond Chabot) to act as their agent to interface with Quebec victims and to help the victims navigate the process and receive compensation.

We are proud that our firm’s tireless and dedicated work on this matter will finally deliver meaningful compensation to the victims of the Tobacco Companies.

For more information or for assistance in filing a claim, please visit the official tobacco class actions website.

In the media:

Tobacco firm JTI-Macdonald granted creditor protection, liable for $1.77-billion

Imperial Tobacco Canada granted creditor protection after losing Quebec legal battle

Rothmans, Benson & Hedges gets creditor protection in $15-billion Quebec lawsuit

Legal battle continues between smokers, tobacco companies and provincial governments

Judgments:

Létourneau c. JTI-MacDonald Corp., 2015 QCCS 2382 (trial judgment)

Imperial Tobacco Canada ltée c. Conseil québécois sur le tabac et la santé, 2019 QCCA 358

Imperial Tobacco Canada Limited, 2025 ONSC 1358 (approval of CCAA plans)