A Canadian court has approved a settlement plan for long-standing tobacco lawsuits, under which the Canadian units of Philip Morris, British American Tobacco, and Japan Tobacco will collectively pay C$32.5 billion ($22.67 billion), the companies confirmed on Friday.

The settlement resolves lawsuits that accused the tobacco companies of knowing since the 1950s that their products caused cancer and other serious illnesses but failing to properly warn consumers.

In 2019, a Quebec court upheld a previous ruling from 2015 that awarded C$15 billion in damages to approximately 100,000 smokers and former smokers who had filed class-action lawsuits. That decision led the Canadian units of Imperial Tobacco Canada, JTI-Macdonald, and Rothmans, Benson & Hedges (RBH) to seek bankruptcy protection in 2019.

Philip Morris’ Canadian subsidiary, RBH, was permitted to retain C$750 million from its upfront payment as part of the settlement, the company disclosed on Friday.

“The plan also contains a number of operating covenants that would govern RBH’s combustible business going forward until the settlement amount has been paid,” Philip Morris stated.

The company also noted that any objections to the settlement by its affiliates and other parties had been resolved.

The court-appointed mediator’s settlement plan is set to be implemented and take effect in 2025.

British American Tobacco emphasized that the settlement will not impact its 2025 financial forecast.