Canada: Growers to Sue Manufacturers?

Source from:  Tobacco International 05/08/2009

Early indicators are there will be high participation in a class action lawsuit against tobacco manufacturers. Following a recent meeting with producers who grew tobacco between 1985 and 1996, a Windsor law firm specializing in class action lawsuits announced a suit against tobacco manufacturers Imperial Tobacco Canada and Rothmans Benson and Hedges was being investigated. The legal action is in connection with a July 31, 2008 guilty plea by the companies for aiding persons to sell or be in possession of tobacco products manufactured in Canada that were not packaged and stamped in conformity with the Excise Act. As a result, it is alleged that growers received less for tobacco sold in the specified time frame due to the companies paying the lower export price for tobacco that was allegedly sold in Canada. Werner Keller of Sutts Strosberg LLP estimated the difference to be 50c to $1 per pound. As of print date, there were already more than 750 contact forms filled out and turned into the tobacco board office. Such forms are not necessary to participate in the class action suit, but do provide updated contact information. It is not mandatory that producers take part in the class action suit and opting out is an option, one lawyer connected with the suit mentioned, but nobody has opted out yet. It is not known if the lawsuit would be open to sharegrowers and those who grew with rented quota. Enditem