Tobacco

PM USA, RJR Plan Appeal

Cigarette makers say class ruling won't stick

NEW YORK -- The two largest tobacco companies in the country will seek appellate review of Monday's court ruling that granted class-action status to tens of millions of "light cigarette smokers for a potential $200 billion lawsuit against tobacco companies.

U.S. District Judge Jack Weinstein in Brooklyn made the ruling on a 2004 lawsuit that alleges Philip Morris USA Inc., R.J. Reynolds Tobacco Co., Lorillard Tobacco Co. and other defendants duped smokers, and responded to consumers' mounting health concerns with a campaign of deception designed [image-nocss] to preserve revenue.

PM USA, RJR and other companies are challenging that decision.

The company will take immediate steps to begin the process of appealing this decision to the United States Circuit Court of Appeals for the Second Circuit, and will seek a stay of all trial court proceedings pending a decision by the appellate court, said William S. Ohlemeyer, Philip Morris USA's vice president and associate general counsel. The company believes that the appellate court will find that [Monday's] certification decision runs counter to the overwhelming weight of federal and state case law regarding class actions in smokers' litigation and must be reversed.

An RJR attorney agreed. Numerous courts across the country have ruled claims like these and others against the tobacco industry can not be tried as class actions, said Martin L. Holton III, deputy general counsel of litigation at R.J. Reynolds. Judge Weinstein himself has acknowledged our position that virtually every smoker of lights' cigarettes chose their cigarette for a different reason. For this reason and numerous others, we remain convinced that a class in this case can not be sustained under the law.

Ohlemeyer added, This case involves smokers who are not seeking to recover for personal injuries, who continue to smoke light' cigarettes and who paid no more for Marlboro Lights cigarettes than they would have paid for regular Marlboros.

Although he granted class certification, Judge Weinstein observed during a Sept. 13 hearing that it would be very difficult for the plaintiffs to prove their case against the companies, saying, You can't get away from the contention of the [companies] that every smoker is somewhat different, particularly over the [class] period.

The Schwab case is a nationwide class of smokers who claim they were defrauded by the companies' use of the brand descriptor lights and purchased light cigarettes because they believed they were safer than other brands.

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