2nd Jun 2015 06:28
LONDON (Alliance News) - British American Tobacco PLC Tuesday confirmed that its Imperial Tobacco Canada subsidiary was amongst three companies ordered to pay CAD15.6 billion in a case that has been running for 10 years after smokers claimed the companies failed to warn them of the risks associated with smoking.
The judgement by the Quebec Superior Court in Canada follows a ten year legal challenge against British American Tobacco's Canadian subsidiary, Imperial Tobacco Canada as well as Philip Morris International and Japan Tobacco International's Canadian subsidiaries.
The cases were brought against the three Canadian tobacco manufacturers on behalf of two groups of plaintiffs: smokers who smoked a minimum of 12 pack-years and who were diagnosed with lung, throat and laryngeal cancer or emphysema prior to March 12, 2012; and smokers who were addicted to nicotine at the time the proceedings were started in September 1998 and remained addicted until at least February 21, 2005.
BAT said it was not a party to the proceedings and is not a party to the judgement, only its Canadian subsidiary. Imperial Tobacco Canada's share of the total damages would be CAD10.4 billion, it said.
However, the companies intend to appeal the judgement.
"The judgement also stated that if an appeal was to be made, a provisional execution order would require the defendants to pay CAD1.131 billion between them. Imperial Tobacco Canada's share of the provisional execution order would be CAD743 million," BAT said.
"There are strong legal grounds with which to challenge both the overall judgement, and to seek a stay of the provisional execution order, which Imperial Tobacco Canada will do within 30 days of the original 27th May ruling," the company said. "As such, no payments will be made until the request to stay the provisional execution order has been heard and a judgement made."
By Steve McGrath; [email protected]; @stevemcgrath1
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