Tobacco Companies Push for Fresh Court Delay as Secret Settlement Talks Continue

Canada’s three largest tobacco manufacturers are again asking the courts for more breathing room, extending a legal pause that has already stretched over half a decade while negotiations over a multibillion-dollar settlement remain unresolved.

Court filings in Ontario reveal that JTI-Macdonald Corp., Rothmans, Benson & Hedges, and Imperial Tobacco Canada Ltd. want an order suspending legal action against them to remain in effect until late March 2025. The stay protects the companies from lawsuits as they attempt to strike a global deal with creditors, including smokers, their families, and provincial governments.

Although the extension request was expected to be heard earlier this week, court records show the hearing has been delayed until Oct. 31. The stay, which was due to expire this week, has been prolonged until that date.

The latest postponement has drawn criticism from health advocates, who argue that prolonged secrecy and repeated delays undermine accountability and weaken the chances of meaningful public health reforms tied to any eventual settlement.

In a sworn affidavit, Rothmans, Benson & Hedges managing director Milena Trentadue acknowledged that mediation has produced some progress but said key disagreements remain unresolved. According to Trentadue, these outstanding issues are essential to reaching what the company describes as a “consensual” global agreement.

She told the court that, given the scale of the case and the number of parties involved, at least six more months and possibly longer would be required to complete negotiations. The remaining work includes finalizing settlement terms, establishing a claims process, convening creditor meetings, securing court approval, and putting the agreement into effect.

The legal standstill dates back to early 2019, after Quebec’s top court upheld a landmark ruling ordering the tobacco firms to pay more than $15 billion in damages. The judgment stemmed from two class-action lawsuits on behalf of roughly 100,000 Quebec smokers and their heirs, involving people who began smoking between 1950 and 1998 and later became ill or dependent.

Originally intended as a short-term measure, the stay of proceedings has now been renewed around a dozen times. Throughout, negotiations have taken place behind closed doors.

Public health groups say the creditor-protection process is ill-suited to a case of this nature, arguing it places financial viability of tobacco companies ahead of public health concerns and justice for victims.

In a joint statement issued last week, Action on Smoking & Health, Physicians for a Smoke-Free Canada, and the Quebec Coalition for Tobacco Control warned that provinces may be conceding too much ground.

Cynthia Callard, executive director of Physicians for a Smoke-Free Canada, said language in recent court filings suggests tobacco companies may be steering the process.

“After more than five years, the industry has been allowed to continue business as usual,” Callard said. “The repeated emphasis on a ‘consensual’ settlement raises the concern that tobacco manufacturers hold disproportionate leverage, even over governments and class-action claimants.”

Court documents filed last fall indicate that hundreds of class-action members have died since creditor-protection proceedings began, intensifying pressure for a resolution.

As the clock continues to tick, critics argue that every delay increases the risk that a once-in-a-generation opportunity to hold the tobacco industry to account and to advance stronger smoking-control measures will be lost.