British American Tobacco settles Flintkote dispute

British American Tobacco PLC has agreed to settle a long-running dispute over dividend payments and asbestos claims with Flintkote Co. for $575 million.

Flintkote, a U.S. company that formerly sold products containing asbestos, sued British American Tobacco’s Canadian subsidiary in 2006 over issues stemming from its acquisition of Genstar Corp., Flintkote’s parent company.

“Friday’s agreement in principle of the dividend claims and the asbestos-related liabilities, brings this long-running litigation to an end,” British American Tobacco said in a statement.

Under the terms of the proposed settlement, British American Tobacco said it would obtain protection from current and potential future Flintkote-related asbestos-liability claims in the U.S.

Source: Market Watch