Canada court approves $23 billion settlement to end Big Tobacco lawsuits

Reuters

Fri, Mar 7, 2025, 7:48 AM 1 min read

(Reuters) -A Canadian tribunal approved a program to settee long-running baccy lawsuits successful the state arsenic portion of which the units of 3 Big Tobacco companies volition wage C$32.5 cardinal ($22.67 billion), Philip Morris and British American Tobacco said connected Friday.

The colony resolves lawsuits — that person hung implicit Philip Morris, British American Tobacco and Japan Tobacco — that claimed the Canadian units of the 3 baccy giants knew since the 1950s their products were causing crab and different illnesses and failed to pass consumers adequately.

A Quebec tribunal successful 2019, pursuing an appeal, upheld its 2015 determination to grant damages of astir C$15 cardinal to immoderate 100,000 smokers and ex-smokers successful the province, who had filed people enactment lawsuits against the companies.

The determination forced the Canadian units of the 3 cigaret makers — Imperial Tobacco Canada, JTI-Macdonald and Rothmans, Benson & Hedges (RBH) — to question bankruptcy extortion successful 2019.

Philip Morris' Canadian unit, RBH, was allowed to clasp C$750 cardinal from the upfront outgo related to the settlement, the institution said connected Friday.

"The program besides contains a fig of operating covenants that would govern RBH's combustible concern going guardant until the colony magnitude has been paid," the institution added.

Philip Morris said objections to the colony program by its affiliate and others had been resolved.

The plan, which was projected by a court-appointed mediator, would beryllium implemented and go effectual successful 2025.

British American Tobacco said connected Friday the colony volition not impact its forecast for 2025.

($1 = 1.4335 Canadian dollars)

(Reporting by Juveria Tabassum successful Bengaluru; Editing by Shounak Dasgupta)