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LONDON / MONTREAL – The subsidiaries of Japan Tobacco Inc., British American Tobacco PLC and Philip Morris International Inc. have been ordered to pay damages in excess of C $ 17 billion ($ 12.8 billion) as a result of the loss of appeal of class actions brought by Quebec smokers.
The Quebec Court of Appeal upheld a lower court decision with minor amendments, according to a decision on Friday.
Smokers claimed damages for addiction and smoking-related illnesses, claiming that they had never been warned of the risks of smoking.
The judgment deals with consolidated class actions against the Canadian subsidiaries of British American Tobacco, Philip Morris International and Japan Tobacco International, known as Imperial Tobacco Canada Ltd. respectively. Rothmans, Benson & Hedges Inc. (RBH); and JTI-Macdonald Corp.
JTI-Macdonald said in a statement that it "fundamentally disapproved" of the court's ruling and that Canadians "were very aware of the health risks of smoking."
RBH said in a statement that it will try to appeal this decision to the Supreme Court of Canada. JTI-Macdonald said she would consider this option.
"The risks associated with smoking have been known in Canada for decades. Consumers were aware of this, and that's why we think we should not be held accountable, "said Eric Gagnon, Corporate and Regulatory Affairs Manager at Imperial Tobacco. disappointing."
Ben Stevens, chief financial officer of British American Tobacco, told analysts Thursday that Canadian business would probably take years to be heard by the courts.
While the big tobacco companies in the United States have been prosecuted for decades, the Quebec class action was the first time that tobacco companies were subject to civil litigation in Canada.
"This is a total and resounding defeat for the tobacco industry," said Rob Cunningham, Senior Policy Analyst at the Canadian Cancer Society, based in Ottawa. The industry "is engaged in decades of faulty behavior resulting in great suffering, illness and death."
The judgment comes as large tobacco companies pour billions of dollars into vaping devices producing nicotine in the form of steam, which is said to be less harmful than smoke, and smoking rates are falling in many country.
The two lawsuits in Quebec, Letourneau and Blais, were filed in 1998 and certified as class actions in 2005. They were consolidated in one action before the start of the trial in 2012, which ended in December. 2014.
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