The Canadian units of Japan Tobacco, Philip Morris International and British American Tobacco have agreed to pay 32.5 billion Canadian dollars (¥3.4 trillion) to settle their litigation in Canada over health risks from tobacco products, Japan Tobacco said Monday.
For the settlement, the Canadian unit of Japan Tobacco plans to record nearly ¥400 billion in loss allowances as sales expenses. The three companies will continue paying amounts calculated based on their earnings until the sum of their payments reach the agreed level. The proposed settlement is subject to court approval.
In 2015, a court in the Canadian province of Quebec ordered Canadian subsidiaries of the three companies to compensate smokers, and an appeals court supported the ruling. The three subsidiaries were seeking to settle the litigation through court-supervised mediation.
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