|
Big Tobacco ready to deal?
|
 |
September 7, 2000: 5:29 p.m. ET
Two firms reportedly in preliminary talks for nationwide settlement
|
NEW YORK (CNNfn) - Two cigarette makers, Lorillard Tobacco and the Liggett Group, are reportedly in preliminary talks with plaintiffs' attorneys to reach a nationwide settlement of all smokers' claims against the tobacco industry.
The New York Times, citing unidentified lawyers involved in the talks, reported Thursday the two companies have entered preliminary discussions with the plaintiffs' lawyers.
The newspaper reported that the three biggest cigarette companies, Philip Morris Cos. Inc., R.J. Reynolds, and Brown & Williamson, said they did not intend to settle.
Lorillard and Liggett declined comment to the newspaper. Liggett, a unit of the holding company Vector Group and the smallest of the major tobacco firms, also declined comment to CNNfn.com. Lorillard, a subsidiary of the Loews Corp., did not immediately respond to a request for comment.
Meanwhile, a federal judge in New York on Wednesday ordered Big Tobacco and lawyers for plaintiffs in 10 smoking lawsuits to appear at a hearing Monday to discuss whether to consolidate all punitive damage cases into a nationwide class-action suit. Plaintiffs' lawyers have asked that the cases be consolidated.
The 10 lawsuits, all pending before U.S. District Judge Jack B. Weinstein, include class-action cases brought by smokers as well as by union health funds and insurers that paid smokers' medical costs. None of the cases has yet gone to trial.
William S. Ohlemeyer, associate general counsel for Philip Morris, said the company would fight moves to consolidate the cases. He said the plaintiffs' move was an "inappropriate attempt to combine invalid claims that have been rejected time and again by federal appellate courts."
In April, Weinstein urged lawyers for both sides to sketch out a framework for a global settlement designed to end all major tobacco litigation in the country. Cigarette makers declined to participate.
In July, a Florida state jury issued a $145 billion award to members of a class action lawsuit brought on behalf of all Florida residents with smoking-related illnesses. Tobacco companies have appealed the verdict.
In Thursday trading, Loews (LTR: Research, Estimates) shares fell $1 to $80.13, Vector Group (VGR: Research, Estimates) stock was unchanged at $20.38, Dow component Philip Morris (MO: Research, Estimates) stock was unchanged at $29.75, and RJR (RJR: Research, Estimates) shares also were unchanged, at $36.62. British American Tobacco Corp. (BTI: Research, Estimates), parent of Brown & Williamson, slipped 12 cents to $12.81. 
-- from staff and wire reports
|
|
|
|
|
|
Lorillard
Liggett Group
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
