Attached files
file | filename |
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10-Q - FORM 10-Q - VECTOR GROUP LTD | g21123e10vq.htm |
EX-32.2 - EX-32.2 - VECTOR GROUP LTD | g21123exv32w2.htm |
EX-31.2 - EX-31.2 - VECTOR GROUP LTD | g21123exv31w2.htm |
EX-31.1 - EX-31.1 - VECTOR GROUP LTD | g21123exv31w1.htm |
EX-32.1 - EX-32.1 - VECTOR GROUP LTD | g21123exv32w1.htm |
Exhibit 99.1
I. INDIVIDUAL SMOKER CASES
Florida
a) Engle Progeny Cases.
Pursuant to the Florida Supreme Courts July 2006 ruling in Engle v. Liggett Group Inc.,
which decertified the Engle class on a prospective basis, former class members had one year
from January 11, 2007 to file individual lawsuits. In addition, some individuals who filed
suit prior to January 11, 2007, and who claim they meet the conditions in Engle, are
attempting to avail themselves of the Engle ruling. Lawsuits by individuals requesting the
benefit of the Engle ruling, whether filed before or after the January 11, 2007 mandate, are
hereinafter referred to as the Engle progeny cases. As of September 30, 2009, Liggett
and/or the Company were named in approximately 3,300 Engle progeny cases in both state and
federal courts in Florida. These cases include approximately 8,585 plaintiffs,
approximately 3,200 of whom have claims pending in federal court. Duplicate cases were filed
in federal and state court on behalf of approximately 660 of these plaintiffs. The majority
of the cases pending in federal court are stayed pending the outcome of an appeal to the
Eleventh Circuit Court of Appeals of several district court orders in which it was found
that the Florida Supreme Courts decision in Engle was unconstitutional. The total number of
cases will likely increase as courts may require multi-plaintiff cases to be severed into
individual cases. The total number of plaintiffs may increase as a result of attempts by
existing plaintiffs to add additional parties. For more information on the Engle case, see
Note 8. Contingencies. At present, trials have been scheduled or are likely to be
scheduled for approximately 43 alleged Engle progeny cases during 2009 and 2010. These cases
are described below:
Alexander v. R.J. Reynolds, et al., Case No. 01-2008-CA-5067, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 01/10/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 05/03/10.
Brock v. R.J. Reynolds, et al., Case No. 01-2007-CA-5190, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 12/18/07). One
individual suing. The case is presently scheduled for trial starting 07/06/10.
Calloway v. R. J. Reynolds, et al., Case No. 08-21770, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 05/15/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 01/04/10 03/26/10.
Clay v. R.J. Reynolds, et al., Case No. 2007-CA-003020, Circuit Court of the
1st Judicial Circuit, Florida, Escambia County (case filed 12/13/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for trial starting 11/16/09.
Cox v. R.J. Reynolds, et al., Case No. 01-2008-CA-3712, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 07/25/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 02/16/10.
Douglas v. R.J. Reynolds, et al., Case No. 08-8108, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 11/02/07). One
individual suing on behalf of the estate
and survivors of a deceased smoker. The case is presently scheduled for the three week trial period starting 03/01/10.
Duque v. Philip Morris, et al., Case No. 07-46324, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/28/07). One
individual suing. The case is presently scheduled for the two week trial period starting
February 1, 2010.
Gil de Rubio v. R.J. Reynolds, et al., Case No. 16-2007-CA-12167-AXXXMA, Circuit
Court of the 4th Judicial Circuit, Florida, Duval County (case filed 12/20/07).
One individual suing on behalf of the estate and survivors of a deceased smoker. The case
is presently scheduled for trial in 05/10.
Gonzalez v. R.J. Reynolds, et al., Case No. 09-53850, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 07/17/09). One
individual suing. The case is presently set for the trial period starting in 03/22/10.
Greene v. R.J. Reynolds, et al., Case No. 08-22567, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 05/20/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 06/28/10 09/24/10.
Haldeman v. R.J. Reynolds, et al., Case No. 07-3798, Circuit Court of the
5th Judicial Circuit, Florida, Marion County (case filed 12/11/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for trial for the two week trial period starting 07/19/10.
Hall v. R.J. Reynolds, et al., Case No. 01-2008-CA-3979, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 07/25/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 04/05/10.
Hanners v. R.J. Reynolds, et al., Case No. 07-CA-020540, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 11/14/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for trial starting 10/12/10.
Harberson v. R.J. Reynolds, et al., Case No. 2007-CA-3021, Circuit Court of the
1st Judicial Circuit, Florida, Escambia County (case filed 12/13/07). Two
individuals suing. The case is presently scheduled for trial starting 03/22/10.
Harvey v. R.J. Reynolds, et al., Case No. 01-2007-CA-5087, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 12/10/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 03/01/10.
Hatziyannakas v. R.J. Reynolds, et al., Case No. 07-36751, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 12/28/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 01/04/10 03/26/10.
2
Hetzner v. R.J. Reynolds, et al., Case No. 2008-32278-CICI, Circuit Court of the
7th Judicial Circuit, Florida, Volusia County (case filed 06/30/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for trial in 03/10.
Kaplan v. R.J. Reynolds, et al., Case No. 08-26341, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 05/01/08). One
individual suing. The case is presently scheduled for the trial period of 01/04/10
03/26/10.
Lowe v. R.J. Reynolds, et al., Case No. 07-3801, Circuit Court of the 5th
Judicial Circuit, Florida, Marion County (case filed 12/11/07). One individual suing on
behalf of the estate and survivors of a deceased smoker. The case is presently scheduled
for the two week trial period starting 01/10/11.
Lukacs v. R. J. Reynolds, et al., Case No. 01-38-22 CA23, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/15/01). One
individual suing on behalf of the estate and survivors of a deceased smoker, as a
decertified Engle class member. In June 2002, the jury awarded $37,500,000 in compensatory
damages, jointly and severally, which was subsequently reduced by the court. The jury found
Liggett 50% responsible. In August 2008, the court entered judgment in the amount of
$24,835,000, plus interest from June 2002. In October 2008, plaintiff withdrew her request
for punitive damages. In November 2008, the court entered final judgment. In December
2008, the defendants appealed the decision to the Third District Court of Appeal. Briefing
is underway. For more information on the Lukacs case, see Note 8. Contingencies.
Mack v. R.J. Reynolds, et al., Case No. 01-2008-CA-3256, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 7/25/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 03/16/10.
Marrafino (formerly Talenfeld) v. R.J. Reynolds, et al., Case No. 08-22565, Circuit
Court of the 17th Judicial Circuit, Florida, Broward County (case filed
05/20/08). One individual suing on behalf of the estate and survivors of a deceased smoker.
The case is presently scheduled for the trial period of 01/12/10 03/26/10.
McKinney v. R.J. Reynolds, et al., Case No. 01-2008-CA-0152, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 01/08/08). One
individual suing on behalf of the estate of a deceased smoker. The case is presently
scheduled for the two week trial period starting 06/07/10.
Morrissette-Stege v. R.J. Reynolds, et al., Case No. 07-34194, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 12/10/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 03/29/10 06/25/10.
Muhlig v. Philip Morris, et al., Case No. 07-46352, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/28/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case will
likely be scheduled for trial during the first quarter of 2010.
3
ODwyer-Harkins v. R.J. Reynolds, et al., Case No. 16-2008-CA-000009-XXXXMA, Circuit
Court of the 4th Judicial Circuit, Florida, Duval County (case filed 01/02/08).
One individual suing as on behalf of the estate and survivors of a deceased smoker. The
case is presently scheduled for trial in 08/10.
Patterson v. R.J. Reynolds, et al., Case No. 08-CA-6853, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 03/28/08). One
individual suing. The case is presently scheduled for the three week trial period starting
01/11/10.
Perry v. R.J. Reynolds, et al., Case No. 01-2008-CA-150, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 07/25/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 05/18/10.
Piendle v. R.J. Reynolds, et al., Case No. 2008-CA-38777, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 12/08/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for the six week trial period starting 01/12/10.
Putney v. R.J. Reynolds, et al., Case No. 07-36668, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 12/28/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 03/29/10 06/25/10.
Rey v. Philip Morris, et al., Case No. 07-46340, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/28/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 01/10.
Rizzuto v. Liggett Group LLC, et al., Case No. H27-CA-2008-003318, Circuit Court of
the 5th Judicial Circuit, Florida, Hernando County (case filed 05/21/08). The
case is presently scheduled for the three week trial period starting 02/15/10.
Rohr v. R.J. Reynolds, et al., Case No. 07-34472, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 12/12/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period of 03/29/10 06/25/10.
Santana v. Philip Morris, et al., Case No. 07-16279, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 05/31/07). One
individual suing. The case is presently scheduled for the two week trial period starting
05/10/10.
Sayles v. R.J. Reynolds, et al., Case No. 50 2008-CA-38599, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 11/06/07). One
individual suing. The case is presently scheduled for the trial period starting 04/26/10.
Sigl v. R.J. Reynolds, et al., Case No. 16 2007-CA-011654, Circuit Court of the
4th Judicial Circuit, Florida, Duval County (case filed 12/11/07). One
individual suing. The case is presently scheduled for the trial period starting 03/15/10.
4
Simon v. R.J. Reynolds, et al., Case No. 50 2008-CA-038812, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 11/9/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the trial period starting 03/01/10.
Soffer v. R.J. Reynolds, et al., Case No. 01-2008-CA-3979, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 08/15/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 04/20/10.
Sotherden v. R.J. Reynolds, et al., Case No. 01-2008-CA-3116, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 06/09/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 01/04/10.
Stalley v. R.J. Reynolds, et al., Case No. 08-22565, Florida, , Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 12/03/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the three week trial period starting 03/08/10.
Townsend v. R.J. Reynolds, et al., Case No. 01-2008-CA-3978, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 07/25/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for the two week trial period starting 02/01/10.
Warrick v. R.J. Reynolds, et al., Case No. 16-2007-CA-11654-QXXXMA, Circuit Court of
the 4th Judicial Circuit, Florida, Duval County (case filed 12/11/07). One
individual suing. The case is presently scheduled for trial in 07/10.
Weick v. R.J. Reynolds, et al., Case No. 08-CA-006827, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 03/28/08). One
individual suing on behalf of the estate and survivors or a deceased smoker. The case is
presently scheduled for the three week trial period starting 03/16/10.
Weingart v. R.J. Reynolds, et al., Case No. 08-CA-038878, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 12/8/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
presently scheduled for trial starting 10/12/10.
b) Other Individual Cases.
Beatty v. R.J. Reynolds, et al., Case No. 50-2009-CA-032435 (AB), Circuit Court of
the 15th Judicial Circuit, Florida, Palm Beach County (case filed 09/24/09). Two
individuals suing.
Bryant v. Philip Morris Inc., et al., Case No. 50-2008-CA-25429 (AJ), Circuit Court
of the 15th Judicial Circuit, Florida, Palm Beach County (case filed 08/25/08).
One individual suing as personal representative of the estate and survivors of a deceased
smoker.
Caldwell v. Philip Morris Inc., et al., Case No. 08-000391 (AA), Circuit Court of
the 15th Judicial Circuit, Florida, Palm Beach County (case filed 01/07/08). One
individual suing on behalf of the estate and survivors of a deceased smoker.
5
Cowart v. Liggett Group Inc., et al., Case No. 98-01483-CA, Circuit Court of the
4th Judicial Circuit, Florida, Duval County (case filed 03/16/98). One
individual suing. Liggett is the only tobacco company defendant in this case. The case is
dormant.
Diamond v. R.J. Reynolds, et al., Case No. 08-24533, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 05/30/08). One
individual suing.
Ferlanti v. Liggett Group LLC, Case No. 03-21697, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 12/11/03). One
individual suing on behalf of the estate and survivors of a deceased smoker. Liggett was
the sole defendant in this action. Trial commenced on February 19, 2009. In March 2009,
the jury returned a verdict for plaintiff in the amount of $1,200,000 (plus $95,972 in
economic damages) but found plaintiff 40% at fault, which reduced the damages award
accordingly. No punitive damages were awarded. The final judgment was entered on March 30,
2009. Liggett appealed the verdict. In May 2009, the court granted plaintiffs motion for
an award of attorneys fees, but, has not scheduled a hearing to determine the amount of the
award.
Fine v. Philip Morris, Inc., et al., Case No. 08-000383 (AA), Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 01/07/08). One
individual suing on behalf of the estate and survivors of a deceased smoker.
Grose v. R.J. Reynolds, et al., Case No. 08-38276, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 08/15/08). One
individual suing as personal representative of the estate and survivors of a deceased
smoker.
Hikin, et al. v. Philip Morris Inc., et al., Case No. 08-57479, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 11/21/08). Two
individuals suing.
Laschke, et al. v. R.J. Reynolds, et al., Case No. 96-8131-CI-008, Circuit Court of
the 6th Judicial Circuit, Florida, Pinellas County (case filed 12/20/96). Two
individuals suing. The dismissal of the case was reversed on appeal, and the case was
remanded to the trial court. Motions to dismiss were filed by the defendants and are
pending. No hearing date has been scheduled.
Levine v. R.J. Reynolds, et al., Case No. CL 95-98769 (AH), Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 07/24/96). One
individual suing. Plaintiff asserted claims for negligence and strict liability against
each defendant and a claim for punitive damages against R.J. Reynolds. On February 27,
2009 plaintiff passed away. Defendant R.J. Reynolds recently filed a motion to dismiss the
case.
Meckler v. Liggett Group Inc., Case No. 97-03949-CA, Circuit Court of the
4th Judicial Circuit, Florida, Duval County (case filed 07/10/97). One
individual suing. Liggett is the only tobacco company defendant in this case. The case is
dormant.
Rawls v. Liggett Group Inc., Case No. 97-01354-CA, Circuit Court of the
4th Judicial Circuit, Florida, Duval County (case filed 03/06/97). One
individual suing. Liggett is the only tobacco company defendant in this case. The case is
dormant.
Spivak v. Philip Morris Inc., et al., Case No. 08-19309 (AH), Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 06/26/08). One
individual suing as personal representative of the estate and survivors of a deceased
smoker.
6
Spry, et al. v. Liggett Group LLC, et al., Case No. 06-31216 CICI, Circuit Court of
the 7th Judicial Circuit, Florida, Volusia County (case filed 07/27/06). Two
individuals suing. Discovery is pending.
Illinois
Kersting v. A.W. Chesterton, Inc., et al., Case No. 09-L-735, Circuit Court of the
Third Judicial Circuit, Illinois, Madison County (case filed 07/16/09). Trial is scheduled
to commence on February 16, 2010.
Louisiana
Dimm, et al. v. R.J. Reynolds, et al., Case No. 53919, Circuit Court of the
18th Judicial District Court, Louisiana, Iberville Parish (case filed 07/25/00).
Seven individuals suing.
Hunter, et al. v. R. J. Reynolds, et al., Case No. 2002/18748m, Circuit Court of the
Civil District Court, Louisiana, Parish of Orleans (case filed 12/04/02). Two individuals
suing.
Newsom, et al. v. R.J. Reynolds, et al., Case No. 105838, Circuit Court of the
16th Judicial District Court, Louisiana, St. Mary Parish (case filed 05/17/00).
Five individuals suing.
Oser v. The American Tobacco Co., et al., Case No. 97-9293, Circuit Court of the
Civil District Court, Louisiana, Parish of Orleans (case filed 05/27/97). One individual
suing.
Reese, et al. v. R. J. Reynolds, et al., Case No. 2003-12761, Circuit Court of the
22nd Judicial District Court, Louisiana, St. Tammany Parish (case filed
06/10/03). Five individuals suing.
Maryland
Slaughter v. John Crane-Houdaille, Inc., et al., Case No. 24-X-06-000394, Circuit
Court, Maryland, Baltimore City (case filed 02/10/09). Plaintiff is suing individually and
as Personal Representative of the Estate of a deceased smoker. Plaintiff seeks damages
allegedly caused to decedent by exposure to asbestos and cigarettes, with claims against
certain asbestos manufacturer defendants and certain tobacco company defendants, including
Liggett.
Carder, et al., v. John Crane-Houdaille, Inc., et al., Case No. 24-X-09-000139,
Circuit Court, Maryland, Baltimore City (case filed 09/04/09). Plaintiff is suing
individually and as personal representative of the estate of a deceased smoker. Plaintiff
seeks damages allegedly caused to decedent by exposure to asbestos and cigarettes, with
claims against certain asbestos manufacturer defendants and certain tobacco company
defendants, including Liggett.
Missouri
Nuzum v. Brown & Williamson Tobacco Corporation, et al., Case No. 03-CV-237237,
Circuit Court, Missouri, Jackson County (case filed 05/21/03). Two individuals suing.
Discovery is pending.
7
New York
Brantley v. The American Tobacco Company, et al., Case No. 114317/01, Supreme Court
of New York, New York County (case filed 07/23/01). One individual suing.
Debobes v. The American Tobacco Company, et al., Case No. 29544/92, Supreme Court of
New York, Nassau County (case filed 10/17/97). One individual suing.
Hausrath, et al. v. Liggett Group LLC, Case No. I2001-09526, Supreme Court of New
York, Erie County (case filed 01/24/02). Two individuals suing. Liggett is the only
defendant in this case.
James v. The American Tobacco Company, et al., Case No. 103034/02, Supreme Court of
New York, New York County (case filed 04/04/97). One individual suing.
Shea, et al. v. The American Tobacco Company, et al., Case No. 008938/03, Supreme
Court of New York, Nassau County (case filed 10/17/97). Two individuals suing.
Standish v. The American Tobacco Company, et al., Case No. 18418-97, Supreme Court
of New York, Bronx County (case filed 07/28/97). One individual suing.
Tomasino, et al. v. The American Tobacco Company, et al., Case No. 027182/97,
Supreme Court of New York, Nassau County (case filed 09/23/97). Two individuals suing.
Tormey, et al. v. The American Tobacco Company, et al., Case No. 2005-0506, Supreme
Court of New York, Onondaga County (case filed 01/25/05). Two individuals suing.
Yedwabnick v. The American Tobacco Company, et al., Case No. 20525/97, Supreme Court
of New York, Queens County (case filed 09/19/97). One individual suing. A Note of Issue
requesting a trial date is scheduled to be filed on May 28, 2010.
Ohio
Croft, et al. v. Akron Gasket & Packing, et al., Case No. CV04541681, Court of
Common Pleas, Ohio, Cuyahoga County (case filed 08/25/05). Two individuals suing.
West Virginia
Brewer, et al. v. The American Tobacco Company, et al., Case No. 01-C-82, Circuit
Court, West Virginia, Ohio County (case filed 03/20/01). Two individuals suing.
Little v. The American Tobacco Company, et al., Case No. 01-C-235, Circuit Court,
West Virginia, Ohio County (case filed 06/04/01). One individual suing.
II. CLASS ACTION CASES
a) Smoking Related
Brown, et al. v. Philip Morris USA Inc., et al., (In Re: Tobacco II Cases), Case No.
711400, Superior Court of California, County of San Diego (case filed 10/01/97). In April
2001, under the California Unfair Competition Laws and the Consumer Legal Remedies Act, the
court granted
8
in part the plaintiffs motion for certification of a class composed of
residents of California who smoked at least one of the defendants cigarettes from June 10,
1993 through April 23, 2001, and who were exposed to the defendants marketing and
advertising activities in California. The action was brought against the major U.S.
cigarette manufacturers, including Liggett, seeking to recover restitution, disgorgement of
profits and other equitable relief under California Business and Professions Code.
Certification was granted as to the plaintiffs claims that the defendants violated § 17200
of the California Business and Professions Code pertaining to unfair competition. The
court, however, refused to certify the class under the California Legal Remedies Act or the
plaintiffs common law claims. Following the November 2004 passage of a proposition in
California that changed the law regarding cases of this nature, the defendants moved to
decertify the class. In March 2005, the court granted the defendants motion. In May 2005,
the plaintiffs appealed. In September 2006, the California Court of Appeal affirmed the
order decertifying the class. In May 2009, the California Supreme Court reversed the order
of decertification and remanded the case for further proceedings regarding whether the class
representatives can demonstrate standing. In June 2009, the defendants filed a Petition for
Rehearing in the California Supreme Court, which was denied by the court in August 2009. In
September 2009, plaintiffs counsel informed the trial court that plaintiffs intend to seek
reconsideration of the trial courts order finding that plaintiffs allegations regarding
lights cigarettes were preempted by federal law. Plaintiffs contend that the recent decision
in Altria Group v. Good, by the United States Supreme Court, necessitates reconsideration of
the trial courts preemption ruling. The defendants intend to oppose the reconsideration
motion. The court will set a briefing schedule, which will likely be heard in January 2010.
Following the decision on reconsideration, the court will address the issue of standing, if
necessary.
Cleary, et al. v. Philip Morris, Inc., et al., Case No. 09-CV-1956, USDC Northern
District of Illinois (case was originally filed 06/03/98 in Circuit Court of Cook County,
Illinois). The action was brought on behalf of persons who have allegedly been injured by
(1) the defendants purported conspiracy pursuant to which defendants allegedly concealed
material facts regarding the addictive nature of nicotine; (2) the defendants alleged acts
of targeting their advertising and marketing to minors; and (3) the defendants claimed
breach of the publics right to defendants compliance with laws prohibiting the
distribution of cigarettes to minors. The plaintiffs request that the defendants be
required to disgorge all profits unjustly received through their sale of cigarettes to
plaintiffs. In July 2006, the plaintiffs filed a motion for class certification and a class
certification hearing was conducted in September 2007. The parties are awaiting a decision.
Merits discovery was stayed pending a ruling by the court on class certification; class
certification discovery is ongoing. In March 2009, plaintiffs filed a Third Amended
Complaint replacing one named class representative with a new plaintiff and adding new
allegations regarding defendants sale of light cigarettes. In March 2009, defendants
filed a notice of removal to the United States District Court for the Northern District of
Illinois. In April 2009, plaintiffs filed a motion to remand the case back to the Circuit
Court of Cook County. In April 2009, plaintiffs in 11 lights class actions, including
Cleary, moved to consolidate these 11 actions in a Multidistrict Litigation entitled In Re:
Light Cigarettes Product Liability Litigation. The motion, as to the consolidation of the
Cleary case, was denied by the court in September 2009.
In Re: Tobacco Litigation (Personal Injury Cases), Case No. 00-C-5000, Circuit
Court, West Virginia, Ohio County (case filed 01/18/00). Although not technically a class
action, the court consolidated approximately 750 individual smoker actions that were pending
prior to 2001 for trial on some common related issues. Liggett was severed from trial of
the consolidated action. A conference was held in February 2009 which put into place a new
case management order and scheduled trial for February 1, 2010. For more information on
this case, see Note 8. Contingencies.
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Parsons, et al. v. A C & S Inc., et al., Case No. 98-C-388, Circuit Court, West
Virginia, Kanawha County (case filed 04/09/98). This personal injury class action is
brought on behalf of plaintiffs decedent and all West Virginia residents who allegedly have
personal injury claims arising from their exposure to cigarette smoke and asbestos fibers.
The case is stayed as a result of the December 2000 bankruptcy petitions filed by three
defendants in the United States Bankruptcy Court for the District of Delaware.
Schwab [McLaughlin], et al. v. Philip Morris USA, Inc., et al., Case No.
04-CV-01945-JBW-SMG, USDC, Eastern District of New York (case filed 05/11/04). This class
action sought economic damages on behalf of plaintiffs and all others similarly situated
under the RICO act challenging the practices of defendants in connection with the marketing,
advertising, promotion, distribution and sale of light cigarettes. In September 2006, the
court certified a nationwide class of light smokers. The defendants appealed the
certification and, in April 2008, the United States Court of Appeals for the Second Circuit
decertified the class. The case has been remanded to the district court. To date, no
further proceedings have been held. In April 2009, plaintiffs in 11 lights class actions,
including Schwab, moved to consolidate these 11 actions in a Multidistrict Litigation
entitled In Re: Light Cigarettes Product Liability Litigation. The motion, as to the
consolidation of the Schwab case, was denied by the court in September 2009.
Young, et al. v. The American Tobacco Company, et al., Case No. 97-CV-03851, Civil
District Court, Louisiana, Orleans Parish (case filed 11/12/97). This purported personal
injury class action is brought on behalf of plaintiff and all similarly situated residents
in Louisiana who, though not themselves cigarette smokers, have been exposed to secondhand
smoke from cigarettes which were manufactured by the defendants, and who suffered injury as
a result of that exposure. The plaintiffs seek to recover an unspecified amount of
compensatory and punitive damages. In October 2004, the trial court stayed this case
pending the outcome of the appeal in Scott v. American Tobacco Co., Inc. For more
information on the Scott case, see Note 8. Contingencies.
b) Price Fixing
Smith, et al. v. Philip Morris, Inc., et al., Case No. 00-CV-26, District Court,
Kansas, Seward County (case filed 02/07/00). In this class action, plaintiffs allege that
defendants conspired to fix, raise, stabilize, or maintain prices for cigarettes in Kansas.
The court granted class certification in November 2001 and discovery is proceeding.
III. GOVERNMENTAL ACTIONS
City of St. Louis, et al. v. American Tobacco Company, Inc., et al., Case No.
CV-982-09652, Circuit Court, Missouri, City of St. Louis (case filed 12/04/98). City of St.
Louis and approximately 40 hospitals (over 50 hospitals originally filed suit, but some have
since dismissed their claims with prejudice) seek to recover past and future costs expended
to provide healthcare charity and bad debt patients suffering from tobacco-related
illnesses, from multiple defendants including Liggett Group LLC, Liggett & Myers Inc. and
Vector Group Ltd. In June 2005, the court granted defendants motion for summary judgment
as to claims for damages which accrued prior to November 16, 1993. The claims for damages
which accrued after November 16, 1993 are pending. Discovery is proceeding. Trial is
scheduled to commence on June 7, 2010.
Crow Creek Sioux Tribe v. The American Tobacco Company, et al., Case No.
CV-97-09-082, Tribal Court of the Crow Creek Sioux Tribe, South Dakota (case filed
09/26/97). The plaintiff
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seeks to recover actual and punitive damages, restitution,
funding of a clinical cessation program, funding of a corrective public education program
and disgorgement of unjust profits from sales to minors. The case is dormant.
IV. THIRD-PARTY PAYOR ACTIONS
General Health Services (Kupat Holim Clalit) v. Philip Morris, Inc., et al., Case
No. 1571/98, District Court, Jerusalem, Israel (case filed 09/28/98). General Health
Services seeks to recover the past and future value of the total expenditures for
health-care services provided to residents of Israel resulting from tobacco related disease
along with interest, increased and/or exemplary damages and costs. Motions filed by the
defendants are pending before the Israel Supreme Court, seeking appeal from a lower courts
decision granting leave to plaintiff for foreign service of process. A hearing occurred in
March 2005. A decision is pending. For more information on the General Health Services
case, see Note 8. Contingencies.
National Committee to Preserve Social Security and Medicare, et al. v. Philip Morris
USA, Inc., et al., 08-CV-02021-RJD-JO, USDC, Eastern District of New York (case filed
05/20/08). Plaintiffs filed this action pursuant to the Medicare as Secondary Payer statute
to recover for Medicare expenditures made from May 21, 2002 to the present. Defendants
Motion to Dismiss and Plaintiffs Motion for Partial Summary Judgment were filed in July
2008. In March 2009, the court granted the Defendants Motion to Dismiss the case. In April
2009, the court denied plaintiffs motion for reconsideration. Plaintiffs appealed to the
United States Court of Appeals for the Second Circuit.
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