By Rich McHugh and Likhitha Butchireddygari The lawyer who took down Big Tobacco 20 years ago has another intimidating foe in his sights. In the 1990s, as Mississippi's attorney general, Mike Moore launched a lawsuit against 13 tobacco companies that eventually resulted in a $246 billion, 50-state settlement.
The First Lawsuits Against Cigarette Manufacturers. When the first reports emerged linking cigarettes to cancer emerged in the 1950s, plaintiffs began suing cigarette manufacturers. Plaintiffs in these early cases -- usually smokers with lung cancer -- typically employed several legal theories in their lawsuits:
The Mississippi lawyers got the highest percentage award, 33 percent, after the panel determined that they had taken the greatest risk by representing the first state to sue the tobacco industry, in 1994.
Although Cipollone died in 1984, her family pursued legal action and was awarded $400,000 in damage, marking the first time a tobacco company had to pay damages to the family of a smoker. The tobacco company appealed, and the verdict was eventually reversed.
Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs.
TEXARKANA (April 14) – Twenty years ago, then-Texas Attorney General Dan Morales filed an historic federal lawsuit accusing the tobacco industry of racketeering and fraud.
Big Tobacco Guilty As Charged. In a landmark 2006 judgment, U.S. District Judge Gladys Kessler found the major U.S. tobacco companies had violated civil racketeering laws (RICO) and engaged in a decades-long conspiracy to deceive the American public about the health effects of smoking and their marketing to children.
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
$206 billion The largest civil litigation settlement in U.S. history occurred in 1998 between the attorneys general of 46 states, Washington, D.C., and five U.S. territories, and the nation's four largest tobacco companies.
Despite these changes, smokers and non-smokers can still pursue a case against tobacco companies. Lawsuits may be more limited than in the past in terms of the claims made, but there are new products and forms of nicotine available, such as e-cigarettes, that may give rise to lawsuits.
On February 25th, 2015, a settlement was reached on behalf of more than 400 Florida smoker lawsuits against the major cigarette companies Philip Morris USA Inc., R.J. Reynolds Tobacco Company, and Lorillard Tobacco Company.
In Fiscal Year 2020, the most recent data available, states received $5.8 billion from the MSA and spent roughly 13% of it on anti-tobacco initiatives. That $656 million is barely one-fifth the amount that the Centers for Disease Control and Prevention recommends the states spend.
Pamela Laramie bought a civil lawsuit alleging that Philip Morris sold “defectively designed” cigarettes, because they were addictive and unreasonably dangerous. Over Philip Morris' objections that Laramie knew the dangers of smoking and smoked anyway, a jury awarded Laramie $21 million. Philip Morris appealed.
Jeffrey WigandJeffrey WigandEducationMA/PhDAlma materUniversity at BuffaloOccupationExpert witness, consultantKnown forWhistleblower on the tobacco industry4 more rows
After his landmark disclosures, Dr. Wigand briefly taught chemistry and Japanese at duPont Manuel Magnet High School in Louisville, Kentucky and was named 1996 Teacher of the Year for the state of Kentucky. Dr. Wigand now is a lecturer, expert witness, and consultant on tobacco-related issues.
Mike MooreIn the mid-1990s, Mississippi was the undisputed leader on the tobacco issue. In 1994, Mike Moore, the state attorney general, filed the first state lawsuit against big tobacco.
It’s one of many Florida lawsuits referred to as an “Engle progeny,” stemming from a 2000 $145 billion verdict in a class action suit led Dr. Howard A. Engle, a Miami Beach pediatrician who smoked, and eventually died of chronic obstructive pulmonary disease.
Cynthia Robinson with her attorneys Willie Gary (left) and Christopher Chestnut (right) as she speaks during an interview on July 21, 2014 in New York City. Bebeto Matthews—AP. By Alexandra Sifferlin. July 22, 2014 11:29 AM EDT.
But the Engle case established that the tobacco industry had deceived Americans, by knowingly putting addictive and cancerous products on the market, and paved the way for thousands of individual Florida cases to take on Big Tobacco. On Friday July 18, Robinson did, and won her bittersweet victory. “It was justice.
When you’re on oxygen and you have to step outside for a cigarette, you can’t stop. You’re addicted.”. Johnson tried multiple times to stop smoking with no success. During one of her husband’s hospital visits, Robinson knew something was wrong when he began sweating and one of his eyes started to droop.
The Johnson case stems from a class-action lawsuit involving Miami Beach pediatrician Howard Engle, who sued the tobacco companies for misleading the public and government as to the dangers of smoking. He was awarded $145 billion in a landmark verdict in July 2000 — the largest punitive damage ever awarded in U.S. history at the time. It was overturned in 2003 after an appeals court ruled that it shouldn't have gone forward as a class-action suit. J. Jeffery Raborn, vice president and assistant general counsel for R.J. Reynolds, said the latest verdict of $23.6 billion was “far beyond the realm of reasonableness and fairness.” Raborn said the company plans to file post-trial motions to appeal the decision and verdict.
The Johnson case stems from a class-action lawsuit involving Miami Beach pediatrician Howard Engle, who sued the tobacco companies for misleading the public and government as to the dangers of smoking. He was awarded $145 billion in a landmark verdict in July 2000 — the largest punitive damage ever awarded in U.S. history at the time.
R.J. Reynolds Tobacco Company must pay $23.6 billion to the widow of a man who died of lung cancer in one of the largest wrongful death verdicts for a single plaintiff in Florida state history, according to attorneys.
A state jury awarded the punitive damages Friday to the estate of Michael Johnson Sr., who died in 1996 from lung cancer after years of chain smoking, attorney Christopher Chestnut told NBC News. Johnson's estate previously won a $17 million verdict as compensation for his family’s loss.
The Texas lawsuit was the next tobacco case set for trial.
On March 29, 1996, Texas was the sixth state to sue Big Tobacco seeking reimbursement for health care costs related to smoking. Mississippi filed first in 1994, followed by Minnesota, Florida, West Virginia and Louisiana. The lawsuits were considered extreme long shots for success.
“The Texas case had the potential to bring the tobacco companies to their knees, ” Daynard says.
Under the settlement agreement, the payments will continue in perpetuity, surpassing $15 billion in 2023. To pay for the settlement and lawyers’ fees, tobacco companies increased the price of cigarettes by $1.40 per pack, which impacted cash-strapped teenagers. As a result, teen smoking plummeted.
“Texas suddenly became so very important because it had an actual trial date and that scared the tobacco companies silly, ” says Joe Rice, a partner at a South Carolina law firm that represented 31 states, including Texas, involved in the tobacco litigation.
By 1998, more than 40 states had filed suit. Each state lawsuit sought hundreds of millions or even billions of dollars in damages. No case was bigger than Texas’, which legal analysts predicted would bankrupt the tobacco companies if the state were to prevail.
As a result, teen smoking plummeted. Surveys showed that nearly 36 percent of teens smoked in 1996, but only 12 percent of them do today. Myers and others point out that Texas budgeted only $10.2 million of the $490 million payment — or two percent — to be used for anti-smoking efforts in 2016.
The lawyers who represented the first states to settle with the tobacco industry over health care costs were awarded $8.2 billion in fees yesterday, the richest legal payday in the nation's history.
The neutral member, John Calhoun Wells , said in a telephone interview yesterday that the unhappiness of tobacco and plaintiffs' lawyers over the awards indicated that the arbitration process had worked.
In Minnesota, where the state and a health insurer settled their cases this year for $6.5 billion, tobacco companies agreed to pay the plaintiffs' lawyers $427 million, or about 7.1 percent of the recovery. Those lawyers were highly regarded by many observers and the size of Minnesota's settlement increased the recoveries by Florida, ...
The state lawsuits were based on novel legal theories. Lawyers spent tens of millions of dollars pursuing them but all the cases were settled before their legal merit could be decided.
John Coffee, a law professor at Columbia University, said that his concern was not so much size of the fees but the fact that some state attorneys general had hired trial lawyers who had contributed to their campaigns.
Steven Yerrid, a plaintiffs' lawyer in Tampa, who had helped represent Florida in its case said that he believed that the $3.4 billion paid to him and his colleagues was justified. He said that the costs come from the industry, rather than the state, and added that he would have received nothing if the lawsuit had failed.
The Texas lawsuit was the next tobacco case set for trial.
The lawsuits were considered extreme long shots for success. The tobacco companies had been sued more than 400 times and had never lost nor settled a single case. In addition, the legal theories at the heart of the state cases were novel and untested.
TLR, in a white paper authored by its general counsel, criticized the deal because it allowed the cigarette makers to “shift the entire cost of the settlement – trillions of dollars over the life of the settlement – not onto the tobacco companies, but onto smokers compelled to pay a de facto tax.”
Instead, the panel awarded $3.3 billion to be paid by the cigarette makers over 25 years.
In January 1998, the Texas lawsuit settled on the eve of trial for a record $15.3 billion, which is the largest settlement of a single case in U.S. history.
Potter remembers the day Liggett Tobacco Co. turned over millions of pages of internal industry documents to a state court in Mississippi.
Mithoff represented Harris County in demanding that the cigarette makers also make payments to counties in the state for their smoking-related healthcare costs.
His firm, Hagens Berman, represented 14 states, including Washington and Arizona, and will collect an average $10 million a year for 25 years. Now lead counsel in a class action alleging Japanese companies like Mitsubishi Heavy Industries used slave labor during World War II. The Seattle attorney will also defend Microsoft against class suits spurred by the federal antitrust case. His wife, an executive there, reports to Microsoft Chief Steve Ballmer.
His total gross earnings in 2000: $60 million.
Blame Joe Rice, 47, if tobacco legal fees seem high. A partner at South Carolina's Ness Motley Loadholt Richardson & Poole, he negotiated the $246 billion tobacco settlement. Rice's firm's take-approximately $2 billion over 25 years-plus millions more from asbestos, toxic torts and medical negligence cases, will finance litigation against the lead paint industry (see Turning Lead Into Gold ), Firestone and other deep-pocket targets.
They argued that tobacco wasn’t harmful or that the diseases had other sources .
Tobacco lawsuits have a unique place in the history of litigation. At one point in history, manufacturers of cigarettes, chew and other tobacco products were considered untouchable. Then, a tipping point was reached, and these once-invincible companies were forced to pay out millions of dollars to individuals, their families, and their estates.
He joined a class of 100,000 Florida smokers to seek damages on the basis that manufacturers failed to disclose the addictive nature of nicotine after they became aware of it .
Smoking became a near-universal activity that was driven by social pressure and ad campaigns. Smoking was permitted nearly everywhere, including in restaurants, at the sports stadium and even on commercial flights.
The combination of widespread use driven by ads and heavy use driven by other factors quickly revealed serious adverse health effects including. Throat Cancer. Cancers of the throat can include tobacco-caused laryngeal cancer, as well as pharynx (upper throat).
The following is a brief walkthrough of the lawsuit developments through the years. The first litigants to sue tobacco manufacturers started filing in the 1950s.
The first litigants to sue tobacco manufacturers started filing in the 1950s. At this time, the role that tobacco played in the previously named medical conditions was not fully understood or accepted. Manufacturers were charged with making cigarettes incorrectly or failing to advertise the dangers.
Tobacco manufacturers responded in full force, fighting each lawsuit and refusing to settle out of court. They relied on several defense strategies, arguing that:
In allowing the Maine case to proceed, the Supreme Court ruled that federal legislation does not preempt plaintiffs from suing under certain state unfair business practice laws. This will open the door for similar lawsuits against tobacco companies. The Supreme Court, however, didn't rule on any of the underlying claims -- plaintiffs will still have to prove that the cigarette companies violated Maine's consumer protection laws. (To learn more about the legal theories underlying light cigarette litigation, see Nolo's article Tobacco Litigation: Claims Involving Light Cigarettes .)
This ruling paved the way for over 8,000 smokers and their families to bring individual lawsuits against the tobacco companies. By 2015, according to RJ Reynolds regulatory filings, the company faced jury verdicts totaling almost $300 million, although many of those cases are in various stages of appeal.
Liggett, the plaintiff and her family alleged that cigarette manufacturers knew -- but did not warn consumers -- that smoking caused lung cancer and that cigarettes were addictive. Although Rose Cipollone's husband was awarded $400,000, an appellate court reversed the decision. Other plaintiffs also sued, claiming that tobacco companies knew cigarettes were addictive and caused cancer.
These states argued that cigarettes contributed to health problems that triggered significant costs for public health systems. In these lawsuits, the tobacco companies could not use the defense that had proven so successful in lawsuits brought by individuals -- that the smoker was aware of the risks and decided to smoke anyway.
In the 1990s, plaintiffs began to have limited success in tobacco lawsuits, partly because some cigarette company documents were leaked showing the companies were aware of the addictive nature of tobacco. The first big win for plaintiffs in a tobacco lawsuit occurred in February 2000, when a California jury ordered Philip Morris to pay $51.5 million to a California smoker with inoperable lung cancer.
negligent manufacture - the tobacco companies failed to act with reasonable care in making and marketing cigarettes. product liability - the tobacco companies made and marketed a product that was unfit to use. negligent advertising - the tobacco companies failed to warn consumers of the risks of smoking cigarettes.
For more than 50 years, tobacco users, their families and government entities have been filing lawsuits against tobacco companies due to the products’ connection with various types of cancer and other diseases.
Tobacco litigation reemerged in the 1980s and 90s when plaintiffs began filing lawsuits claiming that big tobacco companies knew cigarette smoking caused lung cancer and that cigarettes were addictive. In most cases, tobacco companies argued that smokers knowingly assumed the risks associated with smoking. Tobacco companies were largely successful in defending these lawsuits.
Smoking has the potential to harm every organ of the body, affecting a person’s overall health. According to the CDC, other serious health risks linked to cigarettes and smoking include: 1 Risks associated with pregnancy, including preterm delivery, stillbirth, low birth weight, sudden infant death syndrome (SIDS or crib death), ectopic pregnancy and orofacial clefts in infants 2 Problems affecting men’s sperm, which can lead to a reduction in fertility and an increase for birth defects and miscarriage 3 Greater risks affecting bone health 4 Tooth loss 5 Increased risk for cataracts and age-related macular degeneration, a condition characterized by damage to a small spot near the center of the retina 6 Risk of developing type 2 diabetes 7 Adverse effects such as inflammation and decreased immune function 8 Risk of rheumatoid arthritis
Prior to FDA regulation, tobacco products were primarily controlled by individual states and congressional regulation. Key statistics and facts regarding the use of cigarettes in the U.S., according to the Centers for Disease Control and Prevention (CDC) and the U.S. Department of Health and Human Services include:
announced a voluntary recall of 36 cigarette product lines in May 1995. Approximately 8 billion cigarettes were recalled because the company detected unusual tastes and peculiar odors during production and identified methyl isothiocyanate (MITC), a poisonous chemical that may cause severe eye, respiratory, and skin irritation as well as pain, vomiting, and blindness. Recalled cigarettes were manufactured between May 13, 1995 and May 22, 1995.
Additionally, people who smoke cigarettes are 15 to 30 times more likely to get lung cancer or die from lung cancer than people who do not smoke. Call to Get Help Today: (888) 888-0612.
Likewise, smoking causes more deaths each year than HIV, illegal drug use, alcohol use, motor vehicle injuries and firearm-related incidents combined. Smoking is also estimated to increase to increase the risk for coronary disease, stroke and lung cancer.