TORONTO (AP) — Three major tobacco companies would pay nearly $24 billion to settle a long-running legal battle in Canada under a proposed deal.
Philip Morris International said Friday that a court-appointed arbitrator had submitted the proposed settlement to its Canadian subsidiary, Rothmans, Benson & Hedges, over claims and lawsuits related to tobacco products in Canada. Similar deals were also filed regarding JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd.
“After years of mediation, we welcome this important step toward resolving longstanding tobacco product disputes in Canada,” Jacek Olczak, CEO of Philip Morris International, said in a statement.
The three tobacco companies had sought protection from creditors in Ontario in early 2019 after losing an appeal in a landmark lawsuit in Quebec.
The Canadian Press reported that under the $32.5 billion Canadian dollar ($23.53 billion) deal, Canada’s provinces and territories would receive a combined total of CN$24.8 billion; members of the class action would receive CN$4.25 billion; Canadian victims from provinces outside Quebec would receive CN$2.5 billion; and the three tobacco companies would also pay more than CN$1 billion into a foundation to combat tobacco-related diseases – that amount includes CN$131 million from the money allocated to the Quebec plaintiffs.
