Three of the largest cigarette companies in the world are close to settling a long battle in Canada over the health risks of smoking. Philip Morris, British American Tobacco, and Japan Tobacco have agreed to pay C$32.5 billion (about $23.6 billion) to smokers and health departments in Canada.
This proposal comes nearly ten years after a Quebec court decided that these companies had known about the dangers of cigarettes but did not inform their customers.
The decision in 2015 forced these companies to declare bankruptcy in Canada, leading to lengthy negotiations. The exact amount each company will pay is still under discussion, according to Philip Morris. CEO Jacek Olczak expressed hope that the legal process would soon conclude.
If approved, this settlement would be the first time that Big Tobacco has been ordered to directly compensate victims globally.
Approximately C$6.5 billion would go to smokers and their families affected by diseases like lung and throat cancer, with some victims in Quebec receiving awards of up to C$100,000, depending on their illness and smoking history. Government health departments would also receive about C$24 billion over time.
The fight began in 1998 when smokers and former smokers sued the companies. A Quebec court ordered the companies to pay about C$15 billion in damages in 2015, a decision that was confirmed in 2019. Voting on the settlement plan is set for December this year, with a hearing for final approval expected in early next year.
However, some advocacy groups are not satisfied with the deal, stating it does not provide a clear plan to stop these companies from harming future generations. They only see the compensation for victims as a positive aspect of the settlement【BBC】.
https://www.bbc.com/news/articles/cvgx74ldnweo