Quebec court upholds $15B damages award in historic tobacco lawsuit settlement
A Quebec court has upheld a 2015 decision to award damages of around C$15 billion to smokers and ex-smokers, paving the way for a settlement plan approved by a Canadian court. This plan, to be implemented in 2025, involves three major tobacco companies paying C$32.5 billion to resolve long-running lawsuits alleging that the companies knew their products caused cancer and other diseases but failed to adequately warn consumers.
The settlement plan, negotiated by the Canadian federal government, provincial governments, and the tobacco companies, allows Philip Morris' Canadian unit, RBH, to retain C$750 million from the upfront payment. Operating covenants will govern RBH's combustible business until the settlement amount is paid. Objections to the settlement plan have been resolved.
The settlement, involving a total payment of C$32.5 billion, is a significant step towards resolving these long-standing disputes. The plan will become effective in 2025, providing relief to those affected by tobacco-related illnesses.
