Major tobacco firms propose USD24 billion settlement with Canada
Date
10/20/2024 6:26:59 AM
(MENAFN) Three major tobacco companies have proposed a nearly USD24 billion settlement to resolve a protracted legal dispute in Canada. Philip Morris International announced on Friday that a mediator appointed by the court submitted the proposed agreement involving its Canadian affiliate, Rothmans, Benson & Hedges, along with similar settlements for JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd.
Philip Morris International's CEO, Jacek Olczak, expressed optimism about the proposed settlement, highlighting it as a significant step toward resolving long-standing tobacco-related litigation in Canada after years of mediation. The three companies had previously sought creditor protection in Ontario in early 2019 following an unsuccessful appeal in a landmark court case in Quebec.
According to reports from the Canadian Press, the proposed settlement, valued at CNUSD32.5 billion (approximately USD23.53 billion), outlines a distribution plan for the funds. Canadian provinces and territories would receive a combined CNUSD24.8 billion, while members of the class action lawsuit would receive CNUSD4.25 billion. Additionally, Canadian victims from provinces outside of Quebec would be allocated CNUSD2.5 billion. Furthermore, the three tobacco companies have committed over CNUSD1 billion to establish a foundation dedicated to combating tobacco-related diseases, which includes CNUSD131 million earmarked from the funds allocated to Quebec plaintiffs.
This settlement marks a significant development in the ongoing efforts to address the public health implications of tobacco products and the associated legal ramifications faced by these companies in Canada.
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