Sunday, July 20, 2014 3:21:01 AM
FLORIDA JURY SLAMS RJ REYNOLDS WITH $23.6 BILLION IN DAMAGES
MIAMI (AP) — A Florida jury has slammed the nation's No. 2 cigarette maker, R.J. Reynolds Tobacco Co., with $23.6 billion in punitive damages in a lawsuit filed by the widow of a longtime smoker who died of lung cancer in 1996.
The case is one of thousands filed in Florida after the state Supreme Court in 2006 tossed out a $145 billion class action verdict. That ruling also said smokers and their families need only prove addiction and that smoking caused their illnesses or deaths.
Last year, Florida's highest court re-approved that decision, which made it easier for sick smokers or their survivors to pursue lawsuits against tobacco companies without having to prove to the court again that Big Tobacco knowingly sold dangerous products and hid the hazards of cigarette smoking.
The damages a Pensacola jury awarded Friday to Cynthia Robinson after a four-week trial come in addition to $16.8 million in compensatory damages.
Robinson individually sued Reynolds in 2008 on behalf of her late husband, Michael Johnson Sr. Her attorneys said the punitive damages are the largest of any individual case stemming from the original class action lawsuit.
"The jury wanted to send a statement that tobacco cannot continue to lie to the American people and the American government about the addictiveness of and the deadly chemicals in their cigarettes," said one of the woman's attorneys, Christopher Chestnut.
Reynolds' vice president and assistant general counsel, J. Jeffery Raborn, called the damages in Robinson's case "grossly excessive and impermissible under state and constitutional law."
"This verdict goes far beyond the realm of reasonableness and fairness, and is completely inconsistent with the evidence presented," Raborn said in a statement. "We plan to file post-trial motions with the trial court promptly, and are confident that the court will follow the law and not allow this runaway verdict to stand."
The lawsuit's goal was to stop tobacco companies from targeting children and young people with their advertising, said Willie Gary, another attorney representing Robinson.
"If we don't get a dime, that's OK, if we can make a difference and save some lives," Gary said.
The verdict comes the same week that Reynolds American Inc., which owns R.J. Reynolds Tobacco Company, announced it was purchasing Lorillard Tobacco Co., the country's No. 3 cigarette maker, in a $25 billion deal. That would create a tobacco company second only in the U.S. to Marlboro maker Altria Group Inc., which owns Philip Morris USA Inc. and is based in Richmond, Virginia.
The deal is expected to close in the first half of 2015 and likely will face regulatory scrutiny.
"I would rather see the tobacco industry punished to the tune of $24 billion than see them spend $25 billion to consolidate their power," said Scott P. Schlesinger, a Fort Lauderdale attorney who has sued tobacco companies in Florida.
He's won damages ranging from a few million dollars up to $75 million, but he said Friday's verdict was inspiring.
"I have such admiration because they followed through. They let the jury speak without restricting them. We were afraid — we asked for smaller amounts," said Schlesinger, who added, "If I get to the punishment phase (in another case), I'm going to be mighty tempted."
In June, the U.S. Supreme Court turned away cigarette manufacturers' appeals of more than $70 million in court judgments to Florida smokers. Reynolds, Philip Morris and Lorillard had wanted the court to review cases in which smokers won large damage awards without having to prove that the companies sold a defective and dangerous product or hid the risks of smoking.
The Supreme Court refused to hear another of the companies' appeals last year, wanting the court to consider overturning a $2.5 million Tampa jury verdict in the death of a smoker.
Other Florida juries have hit tobacco companies with tens of millions of dollars in punitive damages in lawsuits stemming from the original class action lawsuit.
In August, a Fort Lauderdale jury awarded $37.5 million, including $22.5 million in punitive damages against Reynolds, to the family of a smoker who died at age 38 of lung cancer in 1995.
Attorneys for Reynolds said they would appeal, arguing that the woman knew the dangers of smoking because cigarettes had warning labels when she started. The attorney for the woman's family said teenagers like her were targeted by tobacco companies.
Some large jury verdicts awarding tens of millions of dollars in damages to relatives of smokers have been upheld by appeals courts.
In September, the 3rd District Court of Appeals affirmed $25 million in punitive damages and $10 million in compensatory damages against Lorillard for Dorothy Alexander, whose husband died in 1996 of lung cancer. Lorillard, based in Greensboro, North Carolina, unsuccessfully argued the damages were excessive and raised a number of other claims.
The 1st District Court of Appeals upheld in June 2013 a $20 million punitive damage award to another smoker's widow, more than a year after reversing a $40.8 million award in the same case against Reynolds, based in Winston-Salem, North Carolina. After the appeals court rejected the first award as excessive the award amount was recalculated. The tobacco company still objected.
Messages left Saturday for spokesmen for Lorillard and Altria were not immediately returned.
Recent XXII News
- Form 8-K - Current report • Edgar (US Regulatory) • 06/04/2024 09:00:16 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/30/2024 08:05:23 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 10:08:59 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/10/2024 09:22:05 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 05/10/2024 04:15:19 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/09/2024 08:30:44 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 09:30:52 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/14/2024 09:10:59 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/13/2024 09:30:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/25/2024 01:30:13 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 01/24/2024 09:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/24/2024 09:30:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/09/2024 01:04:11 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/28/2023 09:30:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/21/2023 10:02:41 PM
- 22nd Century Secures $3.2 Million to Date in Warrant Exchange Transaction • GlobeNewswire Inc. • 12/04/2023 12:07:00 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 12/01/2023 10:18:00 PM
- Pharma Stock Up Big After Second Major Announcement This Week • AllPennyStocks.com • 11/29/2023 03:55:00 PM
- Pharma Stock Up Big After Second Major Announcement This Week • AllPennyStocks.com • 11/29/2023 03:55:00 PM
- 22nd Century Appoints Larry Firestone as Chairman and CEO • GlobeNewswire Inc. • 11/29/2023 12:07:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/27/2023 09:56:49 PM
- 22nd Century Group Enters into Agreement to Sell Hemp/Cannabis Franchise • GlobeNewswire Inc. • 11/27/2023 09:44:27 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/13/2023 11:01:36 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/08/2023 10:19:32 PM
- 22nd Century Group Continues VLN® Expansion, Now Retailing in More Than 5,100 Stores • GlobeNewswire Inc. • 11/08/2023 06:15:00 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM