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- Része ennek Records of the Office of the Chief of Staff (Clinton Administration), Harold Ickes, Jr.'s Files
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OCR Page 1 of 91Tobacco
THE WASHINGTON POST
wal
FRIDAY, MAY 24, 1996
Plaintiffs' lawyers who filed the
TOBACCO, From A22
Tobacco
class action suit did not rule out ap-
Ltd., which controls Liggett, said
pealing the decision, but said they
the company continues to believe
would immediately go forward on a
that "responsible compromise is in
Firms Win
different track.
the best interests of Liggett and the
"We are going to file 50 state
entire tobacco industry."
class actions against the industry,"
Kenneth Starr, the high-profile
with the first to be filed in New Or-
In Court
leans this week, said John P. Coale, a
lawyer who argued the industry's
D.C. lawyer who is a member of a
appeal, said through a spokesman
large coalition representing the
that the ruling vindicates its "posi-
tion that a class action is entirely in-
Smokers' Suit Called
plaintiffs. The group, which includes
some of the nation's wealthiest
appropriate as a method for testing
Too Diverse to Be
plaintiffs' attorneys, has built a large
these novel claims."
fund to finance the cases.
Starr is also the independent
Class Action Case
Coale predicted that the plaintiffs
counsel investigating the White-
would find state courts more hospi-
water allegations against President
table to class actions, noting that an
Clinton.
unrelated case filed on behalf of
The class action ruling turned on
By Saundra Torry
and John Schwartz
Al-
thousands of Florida residents who
the question of whether the lawsuit
Washington Post Staff Writers
have contracted smoking-related
presented enough common issues
diseases has been certified as a class
central to the case to make trying it
In a major victory for the tobacco
action in that state.
in a single federal court a better plan
industry, a federal appeals court in
New Orleans yesterday extinguished
"This may turn out to be a Pyrrhic
than bringing individual cases.
a massive class action lawsuit
victory for the tobacco companies,"
In an opinion written by Judge Jer-
brought on behalf of millions of
said David Vladeck, head of the
ry E. Smith, the panel ruled that
D.C.-based Public Citizen Litigation
there are too many variations in
smokers against the nation's leading
tobacco companies.
Group, which has battled the indus-
state law to make a single trial feasi-
ble.
A three-judge panel of the 5th
try in court. "Instead of fighting this
U.S. Circuit Court of Appeals ruled
"The collective wisdom of individ-
case in one court, they will be fight-
that the lawsuit presented issues too
ing them in 50."
ual juries is necessary before this
novel and diverse to be tried under
court commits the fate of an entire
News of the ruling boosted major
the umbrella of a single class action
tobacco company stocks. Philip Mor-
industry or, indeed, the fate of a
case. The suit argues that the com-
ris Cos. closed at $103.87½ yester-
class of millions, to a single jury,"
panies, including Philip Morris Cos.
Smith wrote.
day, up $6.25; and RJR Nabisco
and R.J. Reynolds Tobacco Co.,
Holdings Corp. closed at $33.12½,
Meanwhile, yesterday, published
hooked smokers while concealing
up $2.00. One tobacco industry ana-
reports of internal documents of the
that tobacco is addictive.
lyst, Tony Vento of St. Louis-based
RJ. Reynolds Tobacco Co. said the
The ruling eliminates what many
Edward Jones & Co., said the ruling
company had concluded about 23
anti-smoking advocates had hailed as
alleviates one of the biggest "clouds
years ago that rival Philip Morris
the "biggest threat" the tobacco in-
dustry had ever faced. When U.S.
of smoke that's been hanging over
had perfected a technology to deliv-
District Judge Okla Jones II ruled
the industry, so to speak."
er nicotine more effectively to smok-
last year that the lawsuit could pro-
Still, Vento said, the industry
ers, giving them a stronger "kick."
ceed as a class action, it opened the
door for millions of smokers and for-
faces other legal challenges, includ-
Those documents, filed in a Minne®
mer smokers to join, boosting their
ing a growing number of lawsuits by
sota lawsuit against the industry, ap-
ability to press their claims against
states hoping to recover tobacco-re-
pear to confirm 1995 reports pub-
lished in the Wall Street Journal
the well-financed tobacco industry.
lated Medicaid costs. "They're not
based on similar documents from
See TOBACCO, A22, Col. 1
out of the woods yet."
Brown & Williamson.
Yesterday's ruling will not affect a
RJR officials yesterday denied
TOBACCO, From A1
historic settlement reached in
that its documents proved nicotine
Yesterday's ruling shut that class ac-
March between the Liggett Group
manipulation.
tion docr, at least in the federal
Inc., the nation's fifth-largest tobac-
Also yesterday, the U.S. Attorney
courts.
co company, and plaintiffs in this
for the Eastern District of Louisiana
The tobacco industry's response
case, Coale said. Their agreement
announced indictments against 10
was jubilant. Brown & Williamson
provides that the settlement could
people, including a Brown & Wil-
Tobacco Corp. applauded the deci-
be transferred to any similar cases
liamson regional account manager,
sion, saying it "sends a strong mes-
filed in state courts, he said.
on charges related to alleged con-
sage to class action plaintiffs' law-
A spokeswoman for Brooke Group
spiracy to smuggle cigarettes into
yers to stop the insanity in our
See TOBACCO,A23, Col. 1
Canada to avoid duties.
nation's courts."
Charles Wall, Philip Morris USA's
senior vice president and deputy
general counsel, said in a statement
that the tobacco giant has "full and
compelling defenses to each of the
assertions the plaintiffs have made,
and we are prepared to present
them in court."
&