CANADA
Tobacco companies ordered to put cash aside

A Canadian appeals court has ordered Imperial Tobacco Canada and Rothmans, Benson & Hedges Inc to set aside a combined CAD 984 million (EUR 674 million) as the companies challenge billions in damages awarded to smokers in Quebec, Reuters reported.

The Quebec Court of Appeal yesterday ordered Imperial Tobacco Canada, a subsidiary of British American Tobacco, to set aside CAD 758 million. Rothmans, Benson & Hedges Inc, a subsidiary of Philip Morris International, was ordered to set aside CAD 226 million. The two tobacco companies are to deposit the respective sums in quarterly payments before mid-2017 despite the hearing for the appeal being scheduled for autumn 2016.
Reuters reported that “Imperial said it was disappointed with the decision, as it does not believe it should have to secure a payment before all appeals are exhausted and a final judgment is rendered.”
In June the Superior Court of Quebec awarded more than CAD 15 billion in damages in class-action lawsuits to compensate some 100,000 Quebec smokers and former-smokers who alleged the tobacco companies failed to warn consumers that their products caused cancer and other illnesses.

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