Philip Morris Cuts Profit Forecast After Canada Court Ruling
The decision came in cases in which the company’s Rothmans, Benson & Hedges unit was among the defendants
Philip Morris International Inc. cut its profit outlook for the year and expects lower pretax earnings in the first quarter after a subsidiary and other tobacco companies lost a major legal appeal in Canada.
Last week, the Court of Appeal of Quebec issued a judgment in two class action lawsuits in which Philip Morris unit Rothmans, Benson & Hedges Inc. was a defendant along with British American Tobacco PLC’s Imperial Tobacco Canada Ltd. and Japan Tobacco Inc.’s JTI-Macdonald Corp. The cases date back years and alleged...