Brazil’s Tobacco Health Cost Recovery Lawsuit Reaches Critical Milestone as Court Prepares to Rule

Washington, D.C. — A landmark lawsuit filed in 2019 by Brazil's Office of the Attorney General (Advocacia-Geral da União, or AGU) seeking to hold the country's largest cigarette manufacturers financially accountable for the enormous public health costs caused by smoking has reached a critical milestone. All legal submissions are now complete, including an opinion from the Federal Public Prosecutor's Office supporting the AGU's claims. The case is now awaiting a decision before the Federal Court in Porto Alegre on whether the tobacco companies are liable for the harms caused by the marketing and sale of their cigarettes in Brazil.  

The lawsuit seeks to require the country's largest cigarette manufacturers to compensate Brazil's public health system for healthcare expenditures related to diseases scientifically linked to tobacco use. The defendants include BAT Brasil (formerly Souza Cruz) and Philip Morris Brasil, and their parent companies, British American Tobacco and Philip Morris International. 

The case is one of the world's most significant tobacco health cost recovery lawsuits and could have implications far beyond Brazil. If successful, the case would reinforce the principle that tobacco companies should be held accountable for the enormous health and economic costs caused by their products.

Tobacco use imposes an enormous burden on Brazil's public health system. Each year, smoking causes approximately 177,000 deaths and costs an estimated R$75 billion (almost US$15 billion) in healthcare expenditures to treat tobacco-related diseases. The lawsuit argues that although the manufacture and sale of cigarettes are lawful activities, companies remain legally responsible for compensating society for the damages caused by their products. 

Brazil's lawsuit is the first of its kind in a low- or middle-income country to reach a liability ruling. Similar health cost recovery actions have been pursued in other countries, including Canada and the United States, where governments have successfully sought compensation for healthcare expenditures attributable to tobacco use. 

The tobacco industry has caused enormous and well-documented public health harm in Brazil. A favorable ruling would not only represent a major milestone for Brazil but will also establish an important precedent for governments seeking to hold the tobacco industry accountable.