Court Denies Tobacco Companies' Request to Further Narrow Government's Lawsuit

Companies will Have Another Opportunity to Seek Dismissal of DOJ Lawsuit This Year

U.S. District Judge Gladys Kessler today ruled the Department of Justice claims related to cigarette advertising, marketing, promotions and health warnings in the government’s lawsuit against major American tobacco companies cannot be dismissed from the government’s case at this time.

Ruling on a defense motion for partial summary judgment, Judge Kessler found that there is sufficient reason to allow the claims to remain at this point in the proceedings.

William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel, said “the company continues to defend the case vigorously, and the company believes it is right on the facts and the law.”

Ohlemeyer also said the companies will file summary judgment motions to dismiss the case later this year at the earliest date permitted by the court’s case management order.

In September 2000, Judge Kessler rejected the government’s request for reimbursement of Medicare costs paid to treat alleged smoking-related illnesses because the claims had no legal basis. The only claims remaining in the case were brought under the Racketeer Influenced Corrupt Organizations Act, including those related to advertising, labeling and promotions.

“The government has never before attempted to use the RICO statute in this way, and we believe the government must recognize that the essence of what it is seeking – changes in the way this industry does business – already have occurred through the settlement agreements with the 50 states.

“There are many important issues for the public and society to consider regarding the use of tobacco products, and Philip Morris USA has asked Congress to address these issues by granting regulatory authority to the federal Food and Drug Administration. But it is difficult to see how efforts to legislate through litigation will advance anyone’s objectives,” Ohlemeyer added.

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