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STORY: Three major cigarette makers have agreed to pay billions of dollars to end lawsuits in Canada.

Philip Morris, British American Tobacco and Japan Tobacco are the companies involved.

Philip Morris said Friday (October 18) the firms would pay $23.6 billion to settle a long-running suit.

The Canadian units of the three tobacco giants were dealt a massive blow in 2015.

A Quebec court awarded damages to some 100,000 smokers and former smokers.

They had alleged the companies knew since the 1950s their product caused cancer and other illnesses, and failed to warn consumers adequately.

After an appeal, a court in 2019 upheld the decision that awarded smokers in the Canadian province around $15 billion Canadian dollars.

The decision forced the local subsidiaries of all three companies to seek bankruptcy protection.

The subsidiaries have been under a court-supervised mediation process negotiating a possible settlement ever since.

Philip Morris said the allocation of the aggregate settlement amount between the tobacco giants remains unresolved, adding that voting on the plan would happen in December this year.

British American Tobacco earlier on Friday said the proposed plan was a positive step towards finding a resolution.

Japan Tobacco did not immediately respond to Reuters' request for comment.