Big tobacco companies reach tentative multibillion-dollar settlement with Canada

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Three large tobacco companies would pay nearly $24 billion to settle a long-running legal battle in Canada

Lise Blais, widow of plaintiff Jean-Yves Blais, leaves with her son, Martin, after a news conference in Montreal, on Friday, Oct. 18, 2024. Tobacco companies have offered to pay nearly $24 billion USD in compensation to smokers and their loved ones. , according to a proposed deal.

Philip Morris International said Friday that a court-appointed mediator had filed the proposed settlement with its Canadian affiliate, Rothmans, Benson & Hedges, over tobacco product-related claims and litigation in Canada. Similar deals were also filed covering JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd.

“After years of mediation, we welcome this important step towards the resolution of long-pending tobacco product-related litigation in Canada,” Philip Morris International's CEO Jacek Olczak said in a statement. The three tobacco companies had sought creditor protection in Ontario in early 2019 after they lost an appeal in a landmark court battle in Quebec.

The Canadian Press reported that under the $32.5 billion Canadian dollar deal, Canadian provinces and territories would get a combined CN$24.8 billion; members of the class action would get CN$4.25 billion; Canadian victims from provinces outside Quebec would receive CN$2.

 

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