BRASILIA: The world’s largest cigarette makers, British American Tobacco Plc and Philip Morris International, will have until early March to defend themselves in a lawsuit in Brazil over compensation for tobacco-related diseases.
Souza Cruz Ltda, Philip Morris Brasil Industria e Comercio Ltda and Philip Morris Brasil SA, which produce 90% of the cigarettes sold in Brazil, maintained they were subsidiaries only and notifications had to be sent directly to their parent companies’ headquarters in Britain and the United States. The solicitor general’s office, known as the AGU, said in a statement on Thursday that the cigarette companies had tried to delay the lawsuit, which will now be able to proceed in seeking “the just compensation the Brazilian people deserve.”
A spokesperson for Souza Cruz said the company will study the decision. Philip Morris did immediately reply to a request for comment. The companies’ lawyers have argued that they are not subsidiaries but rather “branches” of parent companies.