Canadian court mediator proposes $23.6 bln tobacco settlement by Philip Morris, BAT and JTI units (updated)

JAPAN TOBACCO

18/10/2024 10:05

(Adds details from Philip Morris statement in paragraphs 2 and
4; background)
       Oct 18 (Reuters) - A Canadian court-appointed mediator
has proposed a C$32.5 billion ($23.6 billion) settlement by the
units of Philip Morris  PM.N , British American Tobacco  BATS.L 
and Japan Tobacco  2914.T  in the country to end a long-running
tobacco litigation, Philip Morris said on Friday.
    "Although important issues with the plan remain to be
resolved, we are hopeful that this legal process will soon
conclude, allowing RBH (Rothmans, Benson & Hedges) and its
stakeholders to focus on the future," Philip Morris CEO Jacek
Olczak said in a statement.
    Philip Morris said the allocation of the aggregate
settlement amount between the companies in the proceedings
remained unresolved.
    The company said that voting on the plan would happen in
December this year and if accepted by claimants, a hearing to
consider approval of the plan would then be expected in the
first half of next year.
    Separately, British American Tobacco on Friday said that a
plan had been filed in a Canadian court to potentially resolve
the litigation, without sharing the details that Philip Morris
did.
    Quebec Superior Court in 2015 had ruled to award damages to
some 100,000 Quebec smokers and ex-smokers who alleged the
companies knew since the 1950s that their product was causing
cancer and other illnesses and failed to warn consumers
adequately.
    In 2019, a Quebec court upheld the 2015 decision that
awarded smokers in the Canadian province around C$15 billion.
    

    ($1 = 1.3792 Canadian dollars)

 (Reporting by Shubham Kalia and Yadarisa Shabong in Bengaluru;
Editing by Mrigank Dhaniwala)
 ((Shubham.Kalia@thomsonreuters.com;))