TORONTO (AP) – Three major tobacco companies will pay nearly $24 billion to settle a long-running legal battle in Canada, according to a proposed settlement.
Philip Morris International said on Friday that a court-appointed arbitrator has filed a proposed settlement with its Canadian affiliate, Rothmans, Benson & Hedges, over claims related to the tobacco product and the Canadian lawsuits. Similar agreements were also entered into involving JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd.
“After years of mediation, we welcome this important step toward resolving Canada’s long-pending tobacco litigation,” Philip Morris International CEO Jacek Olczak said in a statement.
The three tobacco companies had sought creditor protection in Ontario in early 2019 after losing a case in Quebec court.
The Canadian Press reported that under the $32.5 billion Canadian dollar ($23.53 billion) deal, Canada’s provinces and territories will receive a combined CN$24.8 billion; class action members will receive CN$4.25 billion; Canadian victims from provinces outside of Quebec will receive CN$2.5 billion; and the three tobacco companies will also pour more than CN$1 billion into the foundation to fight tobacco-related diseases – that money includes CN$131 million taken from money allocated to Quebec plaintiffs.
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