Federal Judge Penalizes Philip Morris USA for Possible Loss of Email Messages

A federal judge presiding over the government's lawsuit against Philip Morris USA has penalized the company for the possible inadvertent loss of some emails by company employees. The company said it is studying its legal options in light of the ruling.

U.S. District Judge Gladys Kessler, at the government's request, fined the company $2.75 million and ordered it to pay $5,027.48 in legal costs to the U.S. Department of Justice.

"Philip Morris USA believes this is a harsh penalty given the fact that the company brought this matter to the Court's attention as soon as it was discovered and took immediate corrective action. Philip Morris USA has furnished millions of pages of documents to the government for its review in this case, and no one knows for sure whether any emails were lost as a result of this incident," said William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel.

After learning of the possible problem in February during a deposition of a company employee, the company began to inquire into the matter. Following those inquiries, the company informed Judge Kessler of the issue on June 19, 2002.

"Philip Morris USA and its employees take very seriously the responsibility to retain documents related to litigation. The company believes any emails that might have been lost were few in number.

"Because the company acted in good faith, quickly brought this to the Court's attention and took immediate corrective action, it believes the fine and other penalties - including barring the testimony of some Philip Morris USA employees - are unwarranted," said Ohlemeyer.

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