Canadian Court Approves Landmark $32.5 Billion Tobacco Settlement

A Canadian court has approved a $32.5 billion settlement to resolve long-standing lawsuits against three major tobacco companies. This follows a 2019 court decision awarding damages to smokers. The plan ensures the Canadian units of Philip Morris and others adhere to new business regulations until the full amount is paid.

A Canadian court has given the green light to a significant $32.5 billion settlement to resolve tobacco-related lawsuits involving three major companies, according to statements from Philip Morris and British American Tobacco on Friday.

The lawsuits, which claimed these companies knew of the health risks of their products since the 1950s but failed to warn consumers adequately, have been a long-standing legal issue in the country. A Quebec court had upheld a 2015 decision to award around C$15 billion in damages to approximately 100,000 affected smokers and ex-smokers.

Following court battles, Canada's subsidiaries of Imperial Tobacco, JTI-Macdonald, and Rothmans, Benson & Hedges sought bankruptcy protection in 2019. Now resolved, the settlement, mediated by a court-appointed expert, will be implemented in 2025, with units adhering to new operational guidelines until payment completion.

(With inputs from agencies.)