(Reuters) -A Canadian court approved a plan to settle long-running tobacco lawsuits in the country as part of which the units of three Big Tobacco companies will pay C$32.5 billion ($22.67 billion), Philip Morris ( PM ) and British American Tobacco ( BTI ) said on Friday.

The settlement resolves lawsuits - that have hung over Philip Morris ( PM ), British American Tobacco ( BTI ) and Japan Tobacco ( JAPAF ) - that claimed the Canadian units of the three tobacco giants knew since the 1950s their products were causing cancer and other illnesses and failed to warn consumers adequately.

A Quebec court in 2019, following an appeal, upheld its 2015 decision to award damages of around C$15 billion to some 100,000 smokers and ex-smokers in the province, who had filed class action lawsuits against the companies.

The decision forced the Canadian units of the three cigarette makers - Imperial Tobacco Canada, JTI-Macdonald and Rothmans, Benson & Hedges (RBH) - to seek bankruptcy protection in 2019.

Philip Morris' ( PM ) Canadian unit, RBH, was allowed to retain C$750 million from the upfront payment related to the settlement, the company said 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," the company added.

Philip Morris ( PM ) said objections to the settlement plan by its affiliate and others had been resolved.

The plan, which was proposed by a court-appointed mediator, would be implemented and become effective in 2025.

British American Tobacco ( BTI ) said on Friday the settlement will not affect its forecast for 2025.

($1 = 1.4335 Canadian dollars)