NEW YORK -- A federal judge on Monday granted class-action status to tens of millions of "light cigarette" smokers for a potential $200 billion lawsuit against tobacco companies.
U.S. District Judge Jack Weinstein in Brooklyn made the ruling on a 2004 lawsuit that alleges Philip Morris USA Inc., R.J. Reynolds Tobacco Co., Lorillard Tobacco Co. and other defendants duped smokers, and responded to consumers' mounting health concerns with a campaign of deception designed to preserve revenue, according to the Associated Press.
The class includes anyone who purchased cigarettes that were labeled "light" or "lights" after they were put on the market, beginning in the early 1970s. The judge set a trial date of Jan. 22, 2007.
"Critical to plaintiffs' case is certification as a class action," Weinstein wrote. "No other method of aggregation of tens of millions of smokers' claims is practicable. The small amount of possible recovery for each smoker could not justify the expensive and time-consuming pretrial and trial procedures required."
The judge also said he would "entertain a motion to extend the class ... to encompass smokers of all 'low tar' brands rather than 'lights' alone."
Attorneys from both sides had no immediate comment, AP said.
In arguing last week for the class certification, plaintiff attorney Michael D. Hausfeld said the manufacturers hoped to "move markets" with a cynical marketing strategy promoting light cigarettes as a lower-risk alternative to regular cigarettes, even though their own internal documents showed they knew the risks were about the same.
"They understood that they were selling death," he said. The question, he added, was "how to disguise it. ... They put on 'lights.' "
Hausfeld told the judge that an analysis by plaintiffs' expert witnesses concluded more than 90% of the smokers in the potential class purchased light cigarettes over the past three decades based on health concerns, as opposed to taste or other factors. A separate study found that smokers, had they known the truth about the health risks, would have expected discounts of 50% to 80% per pack, part of the basis for a demand for between $120 billion and $200 billion in damages, he said.
The lawyer noted that because the lawsuit was filed under civil provisions of the Racketeer Influenced and Corrupt Organizations Act, those damages could be automatically tripled, up to a staggering $600 billion, according to AP.
Defense attorneys argued that the lawsuit relied on flawed data. Without surveying each smoker in the lawsuit, it would be impossible to determine their motives for buying light cigarettes, they said.
Bonnie Herzog, tobacco stock analyst with Citigroup Investment Research, said the authorization of the class does not come as a complete surprise given Judge Weinstein's track record in previous cases against the industry. However, she added, in a brief note to investors yesterday, We adamantly believe the 2nd Circuit Ct. will decertify the class given the past success the tobacco industry has experienced in this court.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.