British Columbia

B.C. to receive $3.7B of $32.5B settlement between Can. provinces, territories and tobacco companies

B.C. will receive approximately $3.7 billion over 18 years, according to the province, to invest in cancer treatment and research.

Money to be paid out by tobacco companies over 18 years

Dozens of unlit, single cigarettes are shown.
Tobacco companies will be paying out billions of dollars to provinces and territories following a 28-year legal battle. (Michaela Rehle/Reuters)

B.C. will receive about $3.7 billion from tobacco companies, as part of a settlement that comes after a long-running legal battle between tobacco giants and Canadian provinces and territories over the health-related consequences of smoking. 

According to a statement from the province, B.C. will receive the money over 18 years to invest in cancer treatment and research.

The total settlement amount rings in at $32.5 billion, to be distributed among provinces and territories, as well as Quebec smokers and their loved ones. 

"While no amount of money will ever bring lost loved ones back or fully compensate for the harm done, this agreement ensures there are real consequences for corporate wrongdoing," Premier David Eby said in a statement.

B.C. began legal action against the three principal Canadian tobacco companies —  JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — in 1998. 

In December of last year, all provincial and territorial governments, as well as class-action plaintiffs, voted to accept the settlement plan proposed by a court-appointed mediator.

"Today's resolution with tobacco companies after this long-standing litigation will provide direct compensation to people harmed by the effects of smoking, deliver critical funding for health-care systems across Canada and establish a foundation to support treatment research," said Attorney General Niki Sharma.

Eby said the settlement is the largest resolution of its kind in Canada.