British American Tobacco (BTI.US) subsidiary's Canadian tobacco lawsuit is about to reach a settlement agreement

The Zhitong Finance App learned that British American Tobacco (BTI.US) said on Friday that it has submitted a plan to a Canadian court to resolve the tobacco lawsuit brought by its Canadian subsidiary in Canada. According to information, more than five years ago, British American Tobacco filed for bankruptcy protection.

The Canadian Imperial Tobacco Company (ITCAN), a subsidiary of British American Tobacco, has been mediating under court supervision to negotiate all of its unresolved tobacco lawsuits in Canada.

Shortly after a Québec court upheld a 2015 ruling, the department sought bankruptcy protection in 2019, which sought compensation of approximately 15 billion Canadian dollars (US$10.88 billion) for smokers in the province of Canada, which hit subsidiaries of British American Tobacco, Philip Morris (PM.US), and Japan Tobacco International.

British American Tobacco has said it will allocate £436 million (US$569.68 million) in 2019 after the Québec court upholds its decision.

British American Tobacco said on Friday that the court-appointed mediator and supervisor's compromise and arrangement plan has been submitted to the Ontario Superior Court.

ITCAN said in a statement issued by British American Tobacco: “The plan resolved all Canadian tobacco lawsuits and provided comprehensive and all tobacco claims for Imperial Tobacco, British American Tobacco and all related entities.”

British American Tobacco did not disclose details of the plan, but said the department supports the settlement framework and structure.

The department said the settlement will be funded by cash on hand and cash generated from future sales of tobacco products in Canada.