Tobacco Firms To Pay $23.6 Billion In Proposed Canada Settlement

Three of the world’s largest cigarette companies are close to reaching a settlement to end a decades-long legal battle in Canada, where they have been accused of hiding the health risks of tobacco, Natalie Sherman reported for BBC News.

The proposal comes nearly a decade after a Quebec court ruled in 2015 that the companies had long known about the links between cigarettes and cancer but failed to warn their customers.

Philip Morris, British American Tobacco, and Japan Tobacco are expected to pay C$32.5 billion (£18 billion; $23.6 billion) to smokers and health departments in Canada under the terms of a settlement put forward by a court mediator.

 The proposal comes nearly a decade after a Quebec court ruled in 2015 that the companies had long known about the links between cigarettes and cancer but failed to warn their customers.

The landmark ruling led the firms to place their Canadian operations into bankruptcy, triggering years of negotiations. The distribution of payments among the companies is still being finalized, according to Philip Morris.

"Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude," said Jacek Olczak, CEO of Philip Morris, which operates in Canada under the name Rothmans, Benson & Hedges.