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July 15, 2000

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US tobacco firms slapped with billions in damages, to appeal

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Five leading US tobacco companies, slapped with an unprecedented 145 billion dollars in punitive damages, have vowed to appeal against the jury's decision claiming they will go bankrupt if forced to cough up the amount.

Philip Morris, RJ Reynolds, Brown and Williamson, Lorillard and Liggett have been sued in a class-action suit representing nearly 700,000 residents of Florida who complained of smoking-related illnesses.

A six-member Miami jury gave the verdict yesterday on a two-year trial against the companies. The firm hardest hit by it is Philip Morris, ordered to pay 73.96 billion dollars.

Predictably, the companies denounced the verdict calling it "excessive and illegal, bearing no relation to reality".

The combined net worth of the tobacco majors stands at just over 15 billion dollars, while the amount they have to pay in damages is nearly nine times that amount.

Company lawyers pointed out that every smoker who claims part of this money will have to prove in court that his/her health has been affected by smoking, a long and tedious process which could take up to 75 years.

Morris' counsel predicted victory on appeal, saying many other US juries have rejected claims by smokers because "they believe smokers have knowledge and awareness of the risks of smoking and are legally responsible for those choices".

The anti-smoking lobby, led by first lady Hillary Rodham Clinton, termed the jury decision "entirely warranted".

The American Cancer Society said over 50 billion dollars is spent annually in health costs to treat smokers suffering from cardiovascular, cancer and lung diseases.

PTI

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