Philip Morris, which makes Marlboro cigarettes, is seeking to
overturn an intermediate state appeals court's April 30
reinstatement of the award, which had been imposed by a trial judge
in 2003 and overturned two years later.
The award has been on hold during the current appeal. A decision is
not expected for at least several months.
Altria is based in Richmond, Virginia, and controls roughly half of
the U.S. cigarette market. Its shares hit a record high on
Wednesday, and closed up 88 cents at $45.70.
The class-action case was brought in 2000 on behalf of 1.4 million
Illinois smokers, and was the first to go to trial over the use of
the word "light" to promote cigarettes.
Philip Morris was accused of deceiving consumers into believing that
"light" or "low tar" cigarettes were safer than regular cigarettes.
Unlike in many smoking cases, the plaintiffs sought to recoup sums
they claimed to spend on light cigarettes, not money for
health-related claims.
They revived their case after the Federal Trade Commission in 2008
changed its policy on how cigarette makers could describe tar and
nicotine levels in advertising and packaging.
A state court judge dismissed the case again in December 2012. But
the appeals court said that judge lacked authority to decide how the
policy change affected damages, and reinstated the original verdict.
[to top of second column] |
"We feel very confident that the trial record below will be
sustained, and look forward to rearguing the merits in court," said
George Zelcs, a partner at Korein Tillery in Chicago who represents
the plaintiffs, in a telephone interview.
Murray Garnick, an associate general counsel at Altria, said in a
statement there are "compelling reasons" for the Illinois Supreme
Court to again rule for Philip Morris USA.
U.S. regulators have since June 2010 banned companies from using
"light," "low" and "mild" in tobacco labeling.
The case is Philip Morris Inc v. Price et al, Illinois Supreme
Court, No. 117687.
(Reporting by Jonathan Stempel in New York; Editing by Tom Brown and
Andre Grenon)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
|