Japan Tobacco Wins Court Protection in Canada Over Smoking
- Canadian unit says damages exceed its capacity to pay
- Anti-cancer group alleges an attempt to avoid responsibility
Photographer: Yuriko Nakao/Bloomberg
This article is for subscribers only.
Japan Tobacco Inc.’s Canadian unit was granted creditor protection by the Ontario Superior Court after a legal defeat over the risks of smoking that threatens the existence of tobacco companies in the country.
The court extended protection late Friday in favor of JTI-Macdonald Corp. after the company argued that the damage award of as much as C$1.77 billion ($1.32 billion) exceeds its capacity to pay, Japan Tobacco said in a statement. JTI-Macdonald must make an initial damages deposit of C$145 million.