Tuesday, September 29, 2009

Ont. launches $50B tobacco lawsuit

CBC NEWS: Sept 29:

Ontario says it is going to sue the big tobacco companies — for $50 billion.The province said in a news release it is seeking damages "for past and ongoing health-care costs linked to tobacco-related illness.""Ontario is taking the next step towards recovering taxpayer dollars spent fighting tobacco-related illnesses. We are joining British Columbia and New Brunswick in initiating a lawsuit to recover health care costs from tobacco companies," said Attorney General Chris Bentley.The $50 billion figure represents the cost the province says it has footed for providing health care to smokers since 1955.Ontario set the framework for the lawsuit through legislation passed this year. The Tobacco Damages and Health care Costs Recovery Act allows the province to sue for recovery of past, present and ongoing tobacco-related damages.It also creates a method to determine the costs associated with tobacco-related illnesses and allocates liability by market share.

The tobacco companies have not responded. None of the allegations contained in the lawsuit has been proven in court. The first lawsuit against tobacco companies was pursued by four U.S. states in the mid-1990s, and led to the 50-state agreement in 1999 in which the industry agreed to pay $246 billion over a 25-year period for health-care costs that resulted from the use of its products.

No comments: