Three tobacco companies to pay almost $24 billion to Canadian smokers.

 Three tobacco companies to pay almost $24 billion to Canadian smokers.

Three major cigarette manufacturers—Philip Morris, British American Tobacco, and Japan Tobacco—will pay C$3.25 billion to settle a lawsuit in Canada valued at C$2.36 billion. Philip Morris indicated that the payment will follow a plan recommended by a court-appointed mediator.

Jacob Shelley, co-director of the Health Ethics, Law and Policy Lab at Western University in Canada, stated that if approved, this would be the largest settlement of its kind outside the United States, according to Reuters.

The lawsuit, filed in a Quebec court in 2015, alleged that the companies were aware since the 1950s that their products caused cancer and other illnesses but failed to adequately warn consumers. The court ordered compensation for approximately 100,000 smokers and ex-smokers, marking a significant setback for the three companies.

In 2019, the Quebec court upheld its original ruling after an appeal, which mandated the companies to pay C$1.5 billion, leading the Canadian branches of these companies to seek bankruptcy protection.

Philip Morris's Canadian units include Rothmans and Benson & Hedges. British American Tobacco expressed that the proposed plan is a positive step toward resolution, with its local unit, Imperial Tobacco Canada, supporting the plan's structure. The settlement will be financed through cash and future tobacco product sales in Canada. However, BAT's shares fell by 3.5 percent on Friday.