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September 25, 2006:
Today in Brooklyn, U.S. District Judge Jack Weinstein made the ruling on a 2004 lawsuit that alleges Philip Morris, R.J. Reynolds Tobacco, Lorillard Tobacco Co. and other defendants duped smokers, and responded to consumers' mounting health concerns with a campaign of deception designed to preserve revenue. Tobacco companies duped smokers into purchasing "light cigarette" products with advertising that suggested these were healthier than "regular cigarettes." Their internal documents prove they knew this was false advertising.
Tobacco companies knew that the way customers used their "light cigarette" products provided little or no health benefits over using the "regular cigarette" product. To advertise otherwise is false, misleading and illegal.
In his ruling, Judge Weinstein ruled class action certification was "critical to plaintiffs' case." He wrote "No other method of aggregation of tens of millions of smokers' claims is practicable. The small amount of possible recovery for each smoker could not justify the expensive and time-consuming pretrial and trial procedures required."
The offending tobacco companies include:
- BTI: British American Tobacco Plc's British American Tobacco (Investments) Ltd
- CG: Carolina Group - tracking stock for Lorillard Tobacco
- KFT: Owned by parent company Altria (MO)
- LTR: Loews Corp.'s Lorillard
- MO: Philip Morris USA is a subsidiary of Altria Group Inc
- RAI: Reynolds American Inc., the parent of R.J. Reynolds Tobacco
- VGR: Vector Group Ltd.'s Liggett Group
Detailed Quotes for BTI, CG, KFT, LTR, MO, RAI and RAI
I am an ex smoker who will have 10 years of no smoking on December 30, 2006. Yes, I quit the day before New Years Eve just to be different and I knew I was ready. I have NEVER blamed anyone but myself for my poor decision to smoke. I smoked light products for most of the years I smoked thinking they were better for me than regular cigarettes. I switched to Marlboro regulars in my final years after so many places went smokeless and I found I would smoke fewer cigarettes if I smoked the stronger version to satisfy my addiction. I used the "scientific information I gathered myself" to stop lying to myself about being addicted to nicotine as a way to quit for good.
Since I was a victim of false advertising to get more dollars from me, I want those dollars back with interest. I hope to use the attached discussion forum for this article to track this case and help others join the class action suit.
This pending settlement for illegal advertising is one of the biggest reasons I've not thought tobacco stocks were a good investment. False advertising is illegal and money gained by illegal methods should always be returned with interest and penalties. This risk is why the companies have to pay such a high dividend.
DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.
Kirk Lindstrom - With my writing, I hope to help you too reach AND MAINTAIN critical mass where your investments earn enough money that you don't have to ...
