An Ontario judge has rejected the provincial government's request to lift a stay on legal proceedings against three major Canadian tobacco companies.
The Ontario government's request, if granted, would have allowed its lawsuit to recover smoking-related health costs to push forward.
The province launched its lawsuit roughly a decade ago against a dozen Canadian firms and their parent companies to recoup past and present health-care costs related to smoking.But pre-trial preparations stalled last month after three of the tobacco companies involved in the suit -- Imperial Tobacco Canada, JTI-Macdonald Corp. and Benson & Hedges -- sought creditor protection in response to a separate legal battle in Quebec.
The companies then sought relief in the Ontario court and obtained orders suspending all legal proceedings against them while they attempt to negotiate a settlement with all their creditors, including Ontario and other provincial governments.
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