Oct 18 (Reuters) - A Canadian court-appointed mediator

has proposed a C$32.5 billion ($23.6 billion) settlement by the

units of Philip Morris ( PM ), British American Tobacco ( BTI )

and Japan Tobacco ( JAPAF ) in the country to end a long-running

tobacco litigation, Philip Morris ( PM ) said on Friday.

"Although important issues with the plan remain to be

resolved, we are hopeful that this legal process will soon

conclude, allowing RBH (Rothmans, Benson & Hedges) and its

stakeholders to focus on the future," Philip Morris ( PM ) CEO Jacek

Olczak said in a statement.

Philip Morris ( PM ) said the allocation of the aggregate

settlement amount between the companies in the proceedings

remained unresolved.

The company said that voting on the plan would happen in

December this year and if accepted by claimants, a hearing to

consider approval of the plan would then be expected in the

first half of next year.

Separately, British American Tobacco ( BTI ) on Friday said that a

plan had been filed in a Canadian court to potentially resolve

the litigation, without sharing the details that Philip Morris ( PM )

did.

Quebec Superior Court in 2015 had ruled to award damages to

some 100,000 Quebec smokers and ex-smokers who alleged the

companies knew since the 1950s that their product was causing

cancer and other illnesses and failed to warn consumers

adequately.

In 2019, a Quebec court upheld the 2015 decision that

awarded smokers in the Canadian province around C$15 billion.

($1 = 1.3792 Canadian dollars)

(Reporting by Shubham Kalia and Yadarisa Shabong in Bengaluru;

Editing by Mrigank Dhaniwala)