Ill. top court reverses $10.1 bln Altria verdict (Phillip Morris)

Reuters ^ | 12-15-05

[SheLion]

CHICAGO, Dec 15 (Reuters)- The Illinois Supreme Court on Thursday reversed a $10.1 billion verdict against Philip Morris USA, ordering a lower court to dismiss the case in which the company was accused of defrauding customers into thinking "light" cigarettes were safer than regular ones.

The much-anticipated ruling sent shares of Philip Morris parent Altria Group Inc. (MO.N: Quote, Profile, Research) up more than 5 percent to a new all-time high.

The court found that U.S. Federal Trade Commission rulings specifically authorized tobacco companies to characterize their products as "light" or "low tar and nicotine."

The case has been closely watched not just because of the size of the ruling, but because it is one of the legal hurdles management has said need to be cleared before it executes plans to spin its Kraft Foods Inc. (KFT.N: Quote, Profile, Research) unit from its tobacco businesses.

"Even though this was a well-anticipated reversal...the market still has reacted positively to the ruling in pushing up tobacco stocks because this removes yet another legal impediment to the survival of the industry," said Tim Ghriskey, chief investment officer for Solaris Asset Management.

Altria shares rose $4.67 at $78.40 on Thursday on the New York Stock Exchange. The Dow Jones tobacco index was up 5.7 percent.

The initial $10.1 billion judgment in the class-action case was handed down against Philip Morris by a trial court judge in March 2003. The Supreme Court took the unusual step of bypassing the appellate court and hearing the case on appeal directly from the trial court.

Oral arguments were heard by the Supreme Court in November 2004. Philip Morris had argued that the case should never have been certified as a class but should have required each individual smoker to prove their case separately.

(Additional reporting by Emily Kaiser and Jessica Wohl)

[SheLion]

[SheLion]

As much as I hate Phillip Morris, this is a good thing.

We have all known for years and years that ANY cigarette is not good for us.

But, what IS good for us? Cigarettes are still legal and I am happy this judge realized that we all know that there are certain risks involved with smoking!

The attorney's can pound sand.

[dropzone]

Every now and then there is a ray of hope that makes me think for a split millisecond that Western Civiization might have a chance after all.

[metesky]

Much as I hate seeing PM win anything, this could slow the anti-tobacco jihad down a little.

[Mrs. Shawnlaw]

Kool! It looks like the anti-tobacco crowd lost BIG on this one!

[SheLion]

Every now and then there is a ray of hope that makes me think for a split millisecond that Western Civiization might have a chance after all.

It seems for every good judge, there are 5 lousy ones coming behind him.  2 steps forward and 6 back. :(

Today, it's two steps forward. :)

[SheLion]

Kool! It looks like the anti-tobacco crowd lost BIG on this one!

And the attorney's lost 10 billion.  I am gleeful.  LOL!

[Mrs. Shawnlaw]

PM isn't just cigarettes. That's probably a minor part of their huge company. They almost have a lock on the snack industry and a big portion of beverage.

[TheForceOfOne]

This should put the brakes on a few pet pork projects in the Illinois state legislature. I guess they'll be pretty mad about this and go after other easy targets like Coca-Cola, Frito-Lay, Bryer's, Coors, and every other LEGAL product deemed "bad For you" by the Liberal "nanny state" looking to score a win-win by pressing their political beliefs on the public and at the same time bilking the poor company they target.

The extortion will continue.

[SheLion]

Reversed! Philip Morris cleared of $10.1 billion verdict

Thursday, December 15, 2005

The marketing of "light" cigarettes is not hazardous to the health of the largest U.S. tobacco company.

In a landmark ruling, the Illinois Supreme Court has overturned a $10.1 billion Madison County bench verdict, Price v. Philip Morris.

In a 4-2 decision announced Thursday, the court grounded its decision on a section of the Illinois Consumer Fraud Act, which exempts conduct authorized by U.S. regulatory bodies.

The court held that the Federal Trade Commission authorized tobacco companies to characterize cigarettes as "light" or "low tar and nicotine."

Madison County Circuit Judge Nicholas Byron issued the verdict in 2003, citing the defendant duped smokers into believing light cigarettes were safer than regular ones.

Byron called the conduct "outrageous and evil."

Contacted by phone this morning, Byron told a reporter to "have a nice day," and then hung up.

The class action lawsuit was brought by lead plaintiff Sharon Price, an East Alton police dispatcher. She claimed she started smoking in 1966 and switched to Cambridge Lights in 1986.

Plaintiffs presented evidence that "light" or "low tar" cigarettes promoted at that time were no safer than regular cigarettes and, in fact, could be more harmful. They also presented evidence that defendant was aware of this.

The court awarded the estimated 1.14 million members of the plaintiff class compensatory and punitive damages, attorney fees, and prejudgment interest totaling $10.1 billion.

[SheLion]

That's right.

[Joe 6-pack]

"I guess they'll be pretty mad about this and go after other easy target..."

If I were a McDonald's attorney, I'd be sure to rest up over the holidays.

[SheLion]

If I were a McDonald's attorney, I'd be sure to rest up over the holidays.

Here you go. hehe!

[org.whodat]

Great, Great, What a Christmas present some ambulance chaser's who thought they were going to get rich, are now wondering if they are going to be broke. LOL

[SheLion]

Great, Great, What a Christmas present some ambulance chaser's who thought they were going to get rich, are now wondering if they are going to be broke. LOL

They can ALL kiss my patoot.  LOL!

Great, Great, What a Christmas present some ambulance chaser's who thought they were going to get rich, are now wondering if they are going to be broke. LOL

They can ALL kiss my patoot.  LOL!

[Howlin]

This is a good thing.

[2ndClassCitizen]

I told my dad back in the 1990's that I understood why people in his time, he was born around 1907, smoked, as they did not know the dangers. He told me that was hogwash, that when he was growing up, people regarded smokers, as having a deadly habit. He said you don't have to have science tell you something that common sense can tell you. Changed my whole perspective.

[Redcloak]

Madison County Circuit Judge Nicholas Byron issued the verdict in 2003... Byron called the [company's] conduct "outrageous and evil."... Contacted by phone this morning, Byron told a reporter to "have a nice day," and then hung up.

BWAAAHAAAHAAAHAAAAAAAAA!!!!

[SheLion]

This is a good thing.

Howlin, it really IS a good thing.  At least one judge knows that we aren't all wearing blinders out here for so many years. We know the down size to smoking.

This is a good thing.

Howlin, it really IS a good thing.  At least one judge knows that we aren't all wearing blinders out here for so many years. We know the down size to smoking.