Stock market data and financial news reports

BAT, Philip Morris, Japan Tobacco Near Historic $32.5B Settlement in Canada Tobacco Litigation

Oct 18, 2024, 08:07 AM

Three of the world's largest tobacco companies—British American Tobacco Plc (BAT), Philip Morris International Inc., and Japan Tobacco Inc.—are close to reaching a historic settlement in Canada. The proposed deal, valued at $32.5 billion Canadian dollars ($23.6 billion USD), would see the companies pay Canadian provinces and smokers to resolve longstanding litigation over tobacco-related health claims. The settlement was proposed by a court-appointed mediator under the Companies' Creditors Arrangement Act (CCAA) process and involves BAT's Canadian subsidiary Imperial Tobacco Canada Ltd., Philip Morris's subsidiary Rothmans, Benson & Hedges Inc. (RBH), and JTI-Macdonald Corp. Following the announcement, BAT shares fell 2.2%. The settlement aims to address allegations that the companies concealed information about the health risks of smoking. If approved, this would be one of the largest settlements in Canadian legal history, ending years of negotiations and lawsuits.