Illinois Court Reinstates $10B Judgment Against Philip Morris Over ‘Light’ Cigarettes
From the Legal Newsline
An Illinois appellate court has reinstated a $10.1 billion verdict in a class action lawsuit against Philip Morris USA that alleges the company misled consumers about “light” and “low tar” cigarettes.
The class action lawsuit, which was filed in 2000, alleged Philip Morris deceptively marketed light cigarettes. The lawsuit was the nation’s first to accuse a tobacco company of consumer fraud, and the original verdict awarded attorneys almost $2 billion in fees.
The three-judge panel of the Fifth District Appellate Court reinstated the 2003 verdict Tuesday, concluding that the trial court exceeded the scope of section 2-1401 review when it “attempted to predict how the supreme court would rule on the question of damages,” according to the opinion.
Contrary to the defendant’s assertion, the trial court’s discussion of what the state Supreme Court would have decided had it addressed the issues is “inherently speculative in a way its discussion of the impact of the new information on the issue it actually did decide is not.”
“For these reasons, the order denying the petition for relief from judgment must be reversed,” the judges stated in their opinion.
Philip Morris, which is owned by Altria Company, said it would seek immediate review by the Illinois Supreme Court of the appellate court’s decision. While the review is pending, the appellate court’s decision is stayed automatically.
Read more in our daily News Update...
From the Legal Newsline
An Illinois appellate court has reinstated a $10.1 billion verdict in a class action lawsuit against Philip Morris USA that alleges the company misled consumers about “light” and “low tar” cigarettes.
The class action lawsuit, which was filed in 2000, alleged Philip Morris deceptively marketed light cigarettes. The lawsuit was the nation’s first to accuse a tobacco company of consumer fraud, and the original verdict awarded attorneys almost $2 billion in fees.
The three-judge panel of the Fifth District Appellate Court reinstated the 2003 verdict Tuesday, concluding that the trial court exceeded the scope of section 2-1401 review when it “attempted to predict how the supreme court would rule on the question of damages,” according to the opinion.
Contrary to the defendant’s assertion, the trial court’s discussion of what the state Supreme Court would have decided had it addressed the issues is “inherently speculative in a way its discussion of the impact of the new information on the issue it actually did decide is not.”
“For these reasons, the order denying the petition for relief from judgment must be reversed,” the judges stated in their opinion.
Philip Morris, which is owned by Altria Company, said it would seek immediate review by the Illinois Supreme Court of the appellate court’s decision. While the review is pending, the appellate court’s decision is stayed automatically.
Read more in our daily News Update...