PM USA Says 'Lights' Cases Still 'Manageable'

Dec 16, 2008-Philip Morris USA said yesterday that 'lights' cases were still manageable despite a Supreme Court decision that allows a Maine suit to go ahead. But Jess Bravin, writing in the Wall Street Journal, said similar suits were pending in other states, exposing the tobacco industry to a new avenue of attack by smoking opponents. He said the Supreme Court decision had undercut a legal strategy that the wider business community had used to insulate itself from consumer lawsuits filed in state courts. 'With increasing success, companies have been arguing that federal regulation of their products implicitly barred state action, whether by consumers or state government, to hold them liable for injury,' Bravin wrote. In a 5-4 decision the Supreme Court ruled on Monday that a lawsuit involving 'lights' cigarettes brought under the Maine Unfair Trade Practices Act, Altria Group, Inc. v. Good, was not barred by federal law. "While we had hoped for a dismissal based upon federal pre-emption, it is important to note that the Supreme Court made no finding of liability," said Murray Garnick, Altria Client Services senior vice president and associate general counsel, speaking on behalf of PM USA. "We continue to view these cases as manageable, and the company will assert many of the strong defenses used successfully in the past to defend against this very type of case," The Court said that the plaintiffs "still must prove that [the companies'] use of 'lights' and 'lowered tar' descriptors in fact violated the state deceptive practices statute," PM USA added in a note posted on its website. Enditem