As a former smoker, I still don't understand this.
In a blow to Big Tobacco, a federal judge on Monday granted class action status to tens of millions of “light cigarette” smokers for a potential $200 billion lawsuit against cigarette makers.
Big Tobacco today, Big Burgers tomorrow? Big Tanning Salons? Big Sugar? Big Candy? Big Stilettos?
The ramifications are significant.
U.S. District Judge Jack Weinstein in Brooklyn 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.
Of course they were trying to preserve revenues, they're a business.
In arguing last week for the class certification, smokers’ attorney Michael D. Hausfeld said the manufacturers used a marketing strategy that promoted light cigarettes as a lower-risk alternative to regular cigarettes, even though their own internal documents showed they knew the risks were about the same.
I'm grateful to Mr. Hausfeld for watching out for us stupid consumers, but we knew the risks were about the same. My morning coughing fit was the same after I went to 'lights'.
A separate study found that smokers, had they known the truth about the health risks, would have expected discounts of 50 to 80 percent per pack, part of the basis for a demand for between $120 billion and $200 billion in damages, he said.
Hmmm. When I go to the grocery store, I seem to recall that just about everything "light" or "less" anything is about the same price as the regular. Many times it's more because it's a "premium" item.
The nation’s two biggest cigarette makers, Philip Morris USA Inc. and R.J. Reynolds Tobacco Co., said they plan top appeal.
But at least the legal profession will get another economic shot in the arm. That can't be said for the Market.
Marlboro maker Philip Morris, a unit of Altria Group Inc., said the ruling “runs counter to the overwhelming weight of federal and state case law regarding class actions in smokers’ litigation and must be reversed.”
Nonetheless, the judge’s decision drove tobacco stock prices lower.
Anyone surprised?
Maybe it's just me, but I'd love to see the final numbers on these class action suits. I think the percentage that ends up in the lawyers hands would be eye opening.
Listen, if tobacco is that bad for all of us, then make it an illegal substance. That will never happen because that would kill the lawyers golden goose, and cost many a politician - whose constituencies earn a boatload of tax revenue off tobacco - their career.
Sorry for my opinion sneaking in here, but this has always been a scam, pure and simple.
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