Attached files
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10-Q - FORM 10-Q - VECTOR GROUP LTD | g23693e10vq.htm |
EX-31.2 - EX-31.2 - VECTOR GROUP LTD | g23693exv31w2.htm |
EX-32.1 - EX-32.1 - VECTOR GROUP LTD | g23693exv32w1.htm |
EX-32.2 - EX-32.2 - VECTOR GROUP LTD | g23693exv32w2.htm |
EX-31.1 - EX-31.1 - VECTOR GROUP LTD | g23693exv31w1.htm |
EXCEL - IDEA: XBRL DOCUMENT - VECTOR GROUP LTD | Financial_Report.xls |
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 June 30, 2010, Liggett
and/or the Company were named in approximately 7,014 Engle progeny cases in both state and
federal courts in Florida. These cases include approximately 8,284 plaintiffs,
approximately 3,862 of whom have claims pending in federal court and 5,082 in state court.
Duplicate cases were filed in federal and state court on behalf of approximately 660 of
these plaintiffs. 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 5. Contingencies. As of June 30, 2010, 43
alleged Engle progeny cases, where Liggett is currently a named defendant, were scheduled
for trial in 2010 and 2011. These cases, and cases that have been tried and are currently
on appeal, or will be appealed, are described below:
Allen v. R.J. Reynolds, et al., Case No. 16-2007-CA-008311-AXXX-MA, Circuit Court
of the 4th Judicial Circuit, Florida, Duval County (case filed 09/18/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 08/16/10.
Allen v. R.J. Reynolds, et al., Case No. 08-6848, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 03/28/08). One
smoker suing on behalf of the estate and survivors of a deceased smoker. The case is set for
trial starting 10/04/10.
Alvarez v. R.J. Reynolds, et al., Case No. 07-30302, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 09/17/07). Two
individuals suing. The case is scheduled for trial in 04/11/11.
Antal v. R.J. Reynolds, et al., Case No. 2007-CA-3025, Circuit Court of the
1st Judicial Circuit, Florida, Escambia County (case filed 12/13/07). One
individual suing. The case is scheduled for trial in 03/11.
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 scheduled for trial starting 12/06/10.
Campbell v. R.J. Reynolds., et al., Case No. 2008-CA-2147, Circuit Court of the
1st Judicial Circuit, Florida, Escambia County (case filed 07/08/08). This is a
wrongful death action which proceeded to jury trial in July 2009. In August 2009, the jury
returned a verdict in favor of the plaintiff and awarded compensatory damages in the amount
of $7,800,000. The jury apportioned damages as follows: plaintiff 57%, R.J. Reynolds
39%, Philip Morris 2%, and Liggett 2% ($156,000). No punitive damages were awarded
against Liggett. Plaintiff moved for an award of attorneys fees against Liggett pursuant
to the fee shifting provisions of Floridas proposal for
settlement statute based on a
settlement offer that was not accepted by Liggett. Entitlement to an attorney fee award,
and the amount of such an award, will be determined in a separate proceeding, which
scheduled for August 16, 2010. Defendants appealed the judgment.
Campbell v. R.J. Reynolds, et al., Case No. 09-CA-000493, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 01/09/09). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 10/04/10.
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. Trial
commenced on March 22, 2010. On April 13, 2010, the jury returned a verdict in favor of
the plaintiff and awarded compensatory damages in the amount of $3,490,000. The jury
apportioned damages as follows: plaintiff 30%, Liggett 10% ($349,000), R.J. Reynolds
60%. The jury found Liggett liable for $1,000,000 in punitive damages. Entitlement to an
attorney fee award, and the amount of such an award, will be determined in a separate
proceeding.
Cohen v. Philip Morris, Inc., et al., Case No. 07-46336, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/28/07). One
individual suing. The case is scheduled for trial starting 12/06/10.
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
scheduled for trial in 12/06/10.
Delgado v. R.J. Reynolds, et al., Case No. 07-29094, Circuit Court of the
11th Judicial Circuit Florida, Miami-Dade County (case filed 09/07/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 05/02/11.
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. On March 10,
2010, the jury returned a verdict in favor of the plaintiff and awarded compensatory
damages in the amount of $5,000,000. The jury apportioned damages as follows: plaintiff
50%, Liggett 27% ($1,350,000), Philip Morris 18% and R.J. Reynolds 5%. No punitive
damages were awarded. Plaintiff moved for an award of attorneys fees against Liggett
pursuant to the fee shifting provisions of Floridas proposal for settlement statute based
on a settlement offer that was not accepted by Liggett. Entitlement to an attorney fee
award, and the amount of such an award, will be determined in a separate proceeding which
is currently scheduled in August 2010. Defendants appealed the judgment.
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 scheduled for the two week trial period starting 09/20/10.
Esclavon v. R.J. Reynolds, et al., Case No. 2007-33129, Circuit Court of the
7th Judicial Circuit, Florida, Volusia County (case filed 12/10/07). Two
individuals suing. The case is scheduled for trial starting 12/06/10.
Fausel v. R.J. Reynolds, et al., Case No. 38-2010-CA-0130, Circuit Court of the
8th Judicial Circuit, Florida, Levy County (case filed 02/11/10). One
individual suing. The case is scheduled for trial starting 01/03/11.
2
Forman v. Philip Morris, et al., Case No. 07-46345, 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
scheduled for the two week trial period starting 09/20/10.
Gafney 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 scheduled for trial starting 10/12/10.
Gregory v. R.J. Reynolds, et al., Case No. 08-10-CA, Circuit Court of the
14th Judicial Circuit, Florida, Holmes County (case filed 01/10/08). One
individual suing. The case is scheduled for trial starting 03/21/11.
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
scheduled for the two week trial period starting 11/08/10.
Harewood v. Philip Morris, et al., Case No. 07-46331, 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
scheduled for the four week trial period starting 10/04/10.
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
scheduled for the trial period of 09/27/10 12/17/10.
Huish v. R.J. Reynolds, et al., Case No. 01-2008-CA-003714, Circuit Court of the
8th Judicial Circuit, Florida, Alachua County (case filed 07/10/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 02/07/11.
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 scheduled for the trial period 09/27/10 12/17/10.
Katz v. R.J. Reynolds, et al., Case No. 2009-CA-004037, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 02/04/09). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 11/29/10.
Kirchen-Hawkins v. R.J. Reynolds, et al., Case No. 50 2008-CA-039473, Circuit Court
of the 15th Judicial Circuit, Florida, Palm Beach County (case filed 12/08/10).
One individual suing on behalf of the estate and survivors of a deceased smoker. The case
is scheduled for trial starting 09/12/11.
Koonce v. R.J. Reynolds, et al., Case No. 38-2009-CA-1117, Circuit Court of the
8th Judicial Circuit, Florida, Levy County (case filed 10/02/09). One
individual suing as personal representative of the estate and survivors of a deceased
smoker. The case is scheduled for trial starting 12/06/10.
3
Larkin v. R.J. Reynolds, et al., Case No. 02-02829, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 01/31/02). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 03/14/11.
Leeth v. R.J. Reynolds, et al., Case No. 07-18501, Circuit Court of the
13th Judicial Circuit, Florida, Hillsborough County (case filed 12/21/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 02/14/11.
Lowe v. R.J. Reynolds, et al., Case No. 07-3801, Circuit Court of the
5th Judicial Circuit, Florida, Marion County (case filed 12/07/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 05/16/11.
Marraffino (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 may be scheduled for trial in 09/10.
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 is
scheduled for trial starting 01/11.
ODwyer-Harkins v. R.J. Reynolds, et al., Case No. 16-2008-CA-000009-XXXX-MA,
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 likely to be scheduled for trial in 2011.
Ojeda v. Philip Morris USA Inc. et al., Case No. 09-07143, Circuit Court of the
11th Judicial Circuit , Florida, Miami-Dade County (case filed 01/29/09). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 11/22/10.
Palmieri v. R.J. Reynolds, et al., Case No. 07-26287, Circuit Court of the
17th Judicial Circuit, Florida, Broward County (case filed 10/10/07). Two
individuals suing. The case is scheduled for the trial period of 09/27/10 12/17/10.
Perez v. R.J. Reynolds, et al., Case No. 08-04304, Circuit Court of the
11th Judicial Circuit, Florida, Miami-Dade County (case filed 01/02/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 02/14/11.
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
scheduled for trial starting 11/01/10.
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. Trial
commenced in March 2010. On April 26, 2010, the jury returned a verdict in favor of the
plaintiff and awarded compensatory damages in the amount of $15,000,000. The jury
apportioned damages as follows: plaintiff 35%, Liggett 20% ($3,017,338), Philip Morris
15% and R.J. Reynolds 30%. No punitive damages were awarded against Liggett. Plaintiff
moved for an award of attorneys fees against Liggett pursuant to the fee shifting
provisions of Floridas proposal for settlement statute based on a settlement offer that
4
was not accepted by Liggett. Entitlement to an attorney fee award, and the amount of such
an award, will be determined in a separate proceeding.
Richter v. R.J. Reynolds, et al., Case No. 50 2008-CA-038650, 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 trial on 09/12/11.
Rizzuto v. R.J. Reynolds, 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 scheduled for trial starting 10/25/10.
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
scheduled for the trial period of 06/28/10 09/24/10.
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 scheduled for trial starting 01/18/11.
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 12/08/08). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 05/05/11.
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
scheduled for trial starting 03/07/11.
Sulcer v. R.J. Reynolds, et al., Case No. 2007-CA-2540, Circuit Court of the
1st Judicial Circuit, Florida, Escambia County (case filed 10/26/07). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 01/31/11.
Sury v. R.J. Reynolds, et al., Case No. 16-2007-CA-011175-IXXXMA, Circuit Court of
the 4th Judicial Circuit, Florida, Duval County (case filed 11/29/10). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 09/13/10.
Tullo v. R.J. Reynolds Tobacco Co., Case No. 2008-CA-035457, Circuit Court of the
15th Judicial Circuit, Florida, Palm Beach County (case filed 11/14/08). One
individual suing. The case is scheduled for trial starting 11/01/10.
Webb v. R.J. Reynolds, et al., Case No. 38-2009-1285, Circuit Court of the
8th Judicial Circuit, Florida, Levy County (case filed 11/13/09). One
individual suing on behalf of the estate and survivors of a deceased smoker. The case is
scheduled for trial starting 11/01/10.
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
scheduled for trial starting 02/14/11.
5
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.
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 concluded in February 2009 and 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 to $815,972. 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. A hearing to set the amount of attorneys fees is scheduled for 09/13/10.
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. An amended complaint was filed by the plaintiffs. In January
2006, defendants filed motions to dismiss the amended complaint.
McKeever v. R.J. Reynolds Tobacco Co., et al., Case No. 09-87681, Circuit Court of
the 11th Judicial Circuit, Florida, Miami-Dade County (case filed 12/04/09).
Two individuals suing.
6
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.
Spry 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.
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
Burik, et al. v. John-Crane Houdaille, Inc. et al., Case No. 24-X-08-000429,
Circuit Court, Maryland, Baltimore City (case filed 06/09/10). 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. Defendants response to Plaintiffs complaint is due on
August 13, 2010. Liggett will file an adoption of Cigarette Defendants Motion to Dismiss.
Love, et al. v. John-Crane Houdaille, Inc. et al., Case No. 24-X-08-000120, Circuit
Court, Maryland, Baltimore City (case filed 06/01/10). Plaintiff and his wife seek damages
allegedly caused by exposure to asbestos and cigarettes, with claims against certain
asbestos manufacturer defendants and certain tobacco company defendants, including Liggett.
Defendants response to Plaintiffs complaint is due on August 6, 2010. Liggett will file
an adoption of Cigarette Defendants Motion to Dismiss.
7
Missouri
Nuzum, et al. 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.
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. In
December 2008, the trial court granted defendants motion to dismiss plaintiffs claims for
punitive damages as barred by the prior settlement with the New York Attorney General, but
denied the defendants motion to dismiss the case. The dismissal of the punitive damages
claim was affirmed by the intermediate appellate court in May 2010. Plaintiffs filed a
motion seeking to reargue this decision before the appellate court. A hearing is scheduled
for 07/30/10.
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. In
June 2009, the trial court granted defendants motion to dismiss plaintiffs claims for
punitive damages as barred by the prior settlement with the New York Attorney General, but
denied the defendants motion to dismiss the case. The dismissal of the punitive damages
claim was affirmed by the intermediate appellate court in May 2010. Plaintiffs filed a
motion seeking to reargue this decision before the appellate court. A hearing is scheduled
for 07/30/10.
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 12/17/10.
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.
8
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). 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. In April 2001, under the California Unfair
Competition Laws and the Consumer Legal Remedies Act, the court granted 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. 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, and plaintiffs appealed that decertification order. In September 2006, the
California Court of Appeal affirmed the class decertification order. In May 2009, the
California Supreme Court reversed the class decertification order and remanded the case for
further proceedings regarding whether there are class representatives that 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. Additionally, in September
2009, plaintiffs counsel informed the trial court that plaintiffs intend to seek
reconsideration of the trial courts September 2004 order finding that plaintiffs
allegations regarding lights cigarettes are 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 September 2004 preemption ruling. In
March 2010, the trial court granted reconsideration of its September 2004 order granting
partial summary judgment to defendants with respect to plaintiffs lights claims on the
basis of judicial decisions issued since its order was issued, including the United States
Supreme Courts ruling in Altria v Good, thereby reinstating plaintiffs lights claims.
Since the trial courts prior ruling decertifying the class was reversed on appeal by the
California Supreme Court, the parties and the court are treating all claims currently being
asserted by the plaintiffs as certified, subject, however, to defendants challenge to the
class representatives standing to assert their claims. In June 2010, plaintiffs filed a
motion seeking collateral estoppel effect from the findings in the case brought by the
Department of Justice (see DOJ lawsuit described below). Trial is scheduled to start May 6,
2011. Trial is scheduled to start on 05/06/11.
Calistro, et al. v. Altria Group, Inc., et al., Case No. 358/2010, Superior Court
of the Virgin Islands, Division of St. Thomas & St. John (case filed 07/07/10). The action
was brought on behalf of a putative class of smokers who contend they were injured by the
defendants alleged
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fraudulent concealment and other purported misconduct regarding the
addictive nature of nicotine and the promotion of light cigarettes. The plaintiffs seek
equitable relief, compensatory and punitive damages, including, without limitation, damages
for medical monitoring and nicotine rehabilitation programs.
Cleary, et al. v. Philip Morris, Inc., et al., Case No. 09-cv-01596, 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 seek disgorgement of
all profits unjustly received through defendants sale of cigarettes to plaintiffs. 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 November 2009, plaintiffs
filed a revised motion for class certification. On February 1, 2010, the court granted
summary judgment in favor of defendants as to all claims, other than a lights claim
involving another cigarette manufacturer. On February 22, 2010, the court denied
plaintiffs motion for class certification as to each purported class of plaintiffs, but,
allowed plaintiffs an opportunity to reinstate the motion as to the addiction claim, if the
plaintiffs identified a new class representative, which they did, on April 13, 2010.
Plaintiffs filed a Fourth Amended Complaint in an attempt to resurrect their addiction
claims. On June 22, 2010, the court granted defendants motion to dismiss the Fourth
Amended Complaint. On July 20, 2010, plaintiffs moved for reconsideration. The court
denied the motion for reconsideration on July 23, 2010.
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. Trial commenced in June 2010 and ended in a mistrial.
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.
Young, et al. v. American Brands Inc., et al., Case No. 97-19984cv, 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. For more information on
the Scott case, see Note 5. Contingencies.
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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. The
case is set for a status conference on 08/30/10.
III. HEALTH CARE COST RECOVERY 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 11/16/98). The City
of St. Louis and approximately 38 hospitals and former hospitals seek to recover past and
future costs expended to provide healthcare to charity and bad debt patients suffering from
tobacco-related illnesses, as well as the increased costs associated with the treatment of
all patients, from 16 remaining defendants, including Liggett Group LLC and Liggett & Myers
Inc. In June 2005, the court granted defendants motion for summary judgment as to claims
for damages which accrued prior to November 16, 1993. In April 2010, the court further
determined that each plaintiff is barred from seeking any damages which accrued more than
five years prior to the time that that plaintiff joined the suit. In that same order, the
court granted partial summary judgment for defendants barring plaintiffs claim for future
damages, which include damages that may accrue after August 23, 2007 or a later date (but
prior to trial) as the court may determine by subsequent order. In June 2010, the court
denied plaintiffs motion for summary judgment asserting collateral estoppel. In July 2010,
the court granted in part defendants motion for partial summary judgment based on
preemption regarding: (1) all of plaintiffs failure to warn claims, whether sounding in
negligence or in strict liability; (2) plaintiffs claim for negligent omission (although
not including the negligent misrepresentation or fraudulent omission claims); and (3) all
of Plaintiffs so-called targeted marketing claims and allegations. Defendants have filed
other summary judgment motions that remain pending. Trial is scheduled to start on
01/10/11.
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 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.
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.
National Committee to Preserve Social Security and Medicare, et al. v. Philip Morris
USA, Inc., et al., 08-cv-02021, 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. In July 2008,
defendants filed a
motion to
motion to
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dismiss and plaintiffs filed a motion for partial summary
judgment. In March 2009, the court granted defendants motion to dismiss. In May 2009,
plaintiffs noticed an appeal to the United States Court of Appeals for the Second Circuit.
In February 2010, defendants moved to dismiss the appeal. Oral argument is scheduled in
September 2010.
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