Lawsuits

National

Top court rules against Philip Morris
The United States Supreme Court unanimously ruled that a class-action lawsuit against Philip Morris USA should not be decided in federal court. Instead, the lawsuit will be transferred back to the Arkansas state court where it was originally filed by two women who argue that Philip Morris used intentionally deceptive marketing to advertise Cambridge Lights and Marlboro Lights. This ruling overturns an earlier decision by a federal appeals court in St. Louis who sided with Philip Morris’ claim that cigarette advertisements had been regulated by the Federal Trade Commission. To read more about the decision and the lawsuit click here or click here to read the Campaign for Tobacco-Free Kids’ response by President Matthew L. Myers.

Mississippi: Anti-smoking group loses funding as court sides with governor
The Mississippi Supreme Court has decided that The Partnership for a Healthy Mississippi cannot legally receive a portion of the state’s tobacco settlement money. The private non-profit organization has received $20 million annually from the settlement money since 2001 to address smoking prevention, cessation, counter-marketing and law enforcement. Mississippi Governor Haley Barbour led the fight against the diversion of funds to the partnership, maintaining that only the state legislators should decide how the money is to be spent. As a result of the decision, the partnership will most likely shut down by the end of the year. Click here to read more about the ruling or click here to read the Campaign for Tobacco-Free Kids’ response written by President Matthew L. Myers.

Suit accuses tobacco firms of targeting black consumers, seeks $1 billion in damages
Miami attorney J.B. Harris is asking for $1 billion in punitive damages for a Coral Springs resident who lost her mother and grandmother to tobacco-related illnesses. The lawsuit asserts that the tobacco companies utilized unfair and exploitative marketing strategies to recruit black Americans to initiate smoking. Harris has labeled the strategy “marketing by racial profiling” and contends that black African Americans were pursued in this manner to a greater extent than any other racial group. He cites government studies and internal tobacco industry documents, which reveal a higher percentage of billboards in predominantly African American neighborhoods, deliberate advertising efforts in magazines like Ebony, and the recruitment of black Americans through churches and youth groups. To read more about the lawsuit, click here.

States receive supplemental MSA payments
All states participating in the Master Settlement Agreement (MSA) will receive supplemental funds this month, in addition to the payments they received in April. The majority of the funds, which amount to $47.3 million, come from payments the R.J. Reynolds and Lorillard tobacco companies placed in a disputed payments account. The current payments came about due to a reduction in the maximum potential amounts of the Non-Participating Manufacturer (NPM) adjustments. To read more about the payments, click here to access a press release from Kentucky’s Office of the Attorney General.

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