Tobacco Giants to Pay C$32.5 Billion in Landmark Canadian Settlement

Philip Morris, British American Tobacco, and Japan Tobacco will pay C$32.5 billion to settle a major tobacco lawsuit in Canada. The settlement follows a 2015 Quebec court ruling and subsequent appeals. The case involved allegations that the companies failed to warn smokers about health risks since the 1950s.

A significant legal battle has reached a turning point as leading tobacco companies Philip Morris, British American Tobacco, and Japan Tobacco agree to a monumental settlement of C$32.5 billion in Canada. The settlement arises from a court-mandated mediation following a 2015 Quebec court ruling against the companies, impacting around 100,000 smokers and ex-smokers who accused them of withholding information about cancer risks associated with their products.

This legal journey has seen the companies face substantial challenges, including seeking bankruptcy protection for their Canadian subsidiaries. While the settlement represents a key development towards resolution, critical issues about the division of the settlement funds remain a point of discussion, as stated by Philip Morris.

Amid these developments, British American Tobacco expressed optimism about the progress, with plans to fund the settlement through existing cash reserves and future sales. As Philip Morris announced, a vote on the proposed plan is slated for December, with further hearings anticipated next year, pending claimant approval.

(With inputs from agencies.)