Philip Morris USA Will Appeal Louisiana Smokers' Class Action Verdict

Philip Morris USA said it will appeal today’s verdict by a New Orleans jury in the Scott case ordering the nation’s major cigarette manufacturers to pay approximately $590 million for a smoking cessation program in Louisiana.

The jury rejected the plaintiffs’ demand for almost $1.2 billion dollars to fund a 25-year program. Instead, the jury found the duration of the program should be 10 years.

"We are pleased that the jury rejected a substantial portion of the plaintiffs’ proposed cessation program. However, the company believes this decision is legally wrong and will ask the appellate court to set it aside," said William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel.

Today’s decision involved the second phase of the Scott class-action trial, which began March 29, 2004, for the purpose of determining the costs, scope and duration of a smoking cessation program. On July 28, 2003, a jury in the same case found cigarettes are not defective and rejected plaintiffs’ request that the companies be required to fund a comprehensive medical monitoring program. The jury made other findings, including that cessation methods and other aids exist to assist smokers in quitting.

"This case should never have been certified as a class action. The vast majority of class-action cases involving cigarettes are not tried because most courts have recognized that smoking decisions and smoking behavior are almost uniquely personal and cannot be fairly examined in a class-action trial," said Ohlemeyer.

Philip Morris USA will ask the court to set aside today’s verdict. If that motion is unsuccessful, the company will appeal once judgment is entered.

Other defendants in the case included R.J. Reynolds Tobacco Co., Lorillard Tobacco Co., Inc. and Brown and Williamson Tobacco Corp. Louisiana limits the bond required to stay enforcement of the judgment pending appeal to $50 million.

Altria Group, Inc. Profile
Altria Group, Inc. is the parent company of Kraft Foods, the world’s second largest food company, Philip Morris International, the world’s leading international cigarette business, and Philip Morris USA, the leading cigarette manufacturer in the United States.

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