California Tobacco Class Action Certified

SAN DIEGO (May 15, 2001) -- A lawsuit seeking restitution from tobacco companies for every Californian who's bought cigarettes can proceed, a state judge ruled.

Superior Court Judge Ronald Prager in San Diego has certified class-action claims on behalf of California smokers who contend that Philip Morris Cos. and other cigarette makers broke the state's unfair business practices laws, Bloomberg News reported.

Smokers may be eligible for billions of dollars in restitution if the suit succeeds, plaintiffs' lawyers said. While allowing the restitution claims to proceed, Prager refused to allow a class of smokers to seek punitive damages under state consumer-protection laws. Liability for addiction and smoking-related health-care costs, the grounds for many of the suits across the U.S. against tobacco companies, are not issues in the case, the report said.

"Say what you want about tobacco advertising. It's really image advertising. It's not the kind of advertising that most people would look at and say it is unfair or misleading on its face," said William Ohlemeyer, Philip Morris' general counsel, who added that his company will appeal.

The amount of potential damages may reach the billions of dollars, said plaintiffs' attorney Sharon Arkin. Prager is expected to rule in June on whether the class should include smokers back to 1992 or as far back as 1954, Arkin said.

Also named in the suit are American Tobacco Company, now British American Tobacco Plc; R.J. Reynolds Tobacco Holdings Inc.; and Brown & Williamson Tobacco Corp.