Jump to full article: Ontario Tobacco Growers class action (Sutts, Strosberg LLP) (ca), 2010-07-18
Intro: THE CLASS ACTIONS
2. RBH, ITCL and JTI have settled civil claims by the federal and provincial governments in respect of those companies' roles in cross-border smuggling of tobacco. While the governments will be compensated for the losses they have sustained due to tobacco smuggling, the tobacco growers and producers, who claim they were underpaid for their crops, have not been compensated for their losses stemming from that same activity. The class actions are intended to achieve that purpose.
3. On November 5, 2009, a class action was commenced on behalf of Ontario flue-cured tobacco growers and producers against RBH.
4. On December 2, 2009, a class action was commenced on behalf of Ontario flue-cured tobacco growers and producers against ITCL.
5. On April 23, 2010, a class action was commenced on behalf of Ontario flue-cured tobacco growers and producers against JTI.
6. The class actions seek to recover the difference between the export price paid by the domestic manufacturers (RBH, ITCL and JTI) for Ontario tobacco at the Board's auctions and the higher price they ought to have paid because the tobacco was actually intended for domestic use. The pricing and payment obligations were contained in the agreements negotiated annually by the Board on behalf of Ontario flue-cured tobacco growers and producers.
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7. The class actions are in the preliminary stages. The court will eventually set a timetable for the conduct of the actions, but that has not occurred yet.
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