In a significant development in Canada, three major tobacco corporations are poised to resolve a protracted legal dispute by agreeing to pay almost $24 billion. A proposed settlement has been filed by a court-appointed mediator representing Philip Morris International’s Canadian branch, Rothmans, Benson & Hedges, concerning various claims and lawsuits tied to tobacco products in Canada. Similar settlement agreements have also been made for JTI-Macdonald Corp. and Imperial Tobacco Canada Ltd.

“We see this as a crucial advancement towards settling long-lasting litigation concerning tobacco products in Canada,” announced Jacek Olczak, CEO of Philip Morris International. His statement followed the court-mediated proposal, which may pave the way for the resolution of these legal battles that have been ongoing for years.

In early 2019, these tobacco companies had sought creditor protection in Ontario subsequent to losing an appeal in a pivotal court case in Quebec. Reports indicate that the proposed settlement is valued at $32.5 billion Canadian dollars (approximately $23.53 billion). Under this agreement, Canadian provinces and territories would collectively receive around CN$24.8 billion. Additionally, participants in the class action lawsuit are set to receive CN$4.25 billion, while victims from provinces outside Quebec will be allocated CN$2.5 billion.

Furthermore, the three companies will contribute over CN$1 billion to a foundation dedicated to combating diseases linked to tobacco use. This contribution includes CN$131 million that has been specifically designated from the funds allocated to the plaintiffs from Quebec. This settlement represents a monumental step in addressing the ramifications of tobacco usage in Canada and the resulting health issues faced by many.