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Canadian Supreme Court Set to Rule on Tobacco Lawsuits
September 26, 2005

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News Summary

Canada's Supreme Court is poised to issue a ruling on whether provincial governments can sue tobacco companies in an attempt to recoup the costs of treating smoking-related illnesses, Reuters reported Sept. 23.

The court's decision is due this Thursday. Canadian provinces want to file cases similar to actions by U.S. states that ultimately led to the multibillion-dollar nationwide tobacco settlement in 1998. In May 2004, the British Columbia Court of Appeals ruled that the provinces had the right to file such suits; the Supreme Court of Canada heard an industry appeal of that ruling in June 2005.

Provincial governments spend more than C$500 million annually treating smoking-related diseases, officials said. Both leading Canadian and U.S. based cigarette companies are being targeted in the lawsuit.

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