BAT reprieve in £5.3bn lawsuit

BRITISH American Tobacco has won a temporary reprieve in a huge lawsuit that could bankrupt its subsidiary in Canada.

It will not yet have to pay out any of £5.3bn damages awarded to a group of smokers in Quebec after it was granted creditor protection.

The smokers said the subsidiary had known since the 1950s that its product was causing cancer but did not adequately warn customers.

It means less than £5.3bn may be paid out. BAT said: ‘[The] protection will provide an opportunity to settle all outstanding tobacco litigation under an efficient and courtsupervised process.’