CIGoutlet.NET News: Philip Morris faces 21% rise in Tobacco-Related Suits

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Philip Morris faces 21% rise in Tobacco-Related Suits

03/23/99

The annual 10-K filing of Philip Morris with the Securities and Exchange Commission reveals that the number of tobacco-related lawsuits pending against the company in the US increased by 21 % for the year ended March 1, 1999.

The number has risen from 545 cases last year to 660 cases this year, of which about 500 were brought by individuals alleging personal injury caused by smoking. Last November, the company agreed to pay $206 billion to the states to recover the costs of treating sick smokers on Medicaid. "The November settlement was just a taste of what the companies are going to be facing," said Richard Daynard, head of the Tobacco Products Liability Project and a law professor at Northeastern University Law School in Boston. He believes that the $206 billion settlement with the states takes care of only about 10% of potential lawsuits against the company.

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