A federal court judge has given the go-ahead for a class action lawsuit against the tobacco industry. The lawsuit claims that tobacco companies mislead customers by marketing light cigarettes as healthier than regular cigarettes. This comes after a series of wins for the tobacco industry.
By certifying Schwab v. Philip Morris as class action, the door is opened for any United States resident who ever purchased a light cigarette to join the suit. This means that tens of millions of Americans could potentially become plaintiffs in the lawsuit.
So far, plaintiffs in the case have asked for damages between $20 billion and $200 billion. However, a jury could potentially award damages much higher than this. The lawsuit was filed under the federal Racketeer Influenced Corrupt Organizations Act (RICO). Under RICO, defendants found liable have to pay triple damages to plaintiffs.
Lawyers for the plaintiffs argue that tobacco companies marketed their light cigarettes as being safer or less addictive than regular cigarettes. The lawsuit alleges that tobacco companies knew that light cigarettes are just as addictive and dangerous as regular cigarettes.
In giving his decision, the judge said that there was no way to practically try each fraud claim individually.
This decision comes after a July ruling in which the Florida Supreme Court upheld an earlier decision overturning a $145 billion personal-injury judgment against the tobacco industry. In its decision, the Florida Supreme Court said that the $145 billion award would "result in an unlawful crippling of defendant companies."
Then, in September, Judge Gladys Kessler said she did not have the authority to award damages in a suit against the tobacco industry. However, she did find that tobacco companies deliberately mislead consumers about the health risks of low-tar cigarettes. Judge Kessler stated that tobacco companies marketed their products, "with deception, with a single-minded focus on their financial success, and without regard for the human tragedy or social costs that success exacted."
What makes Schwab v. Philip Morris different from previous lawsuits against the tobacco industry is that in this case, the plaintiffs are claiming economic damages. In other cases, plaintiffs sued for compensation for death or disease brought on by smoking. Another major difference is that previous cases were often brought in individual states, such as Florida. This suit represents the entire United States.
Light cigarettes were introduced on the market in 1971 when Marlboro Lights were first sold. According to the plaintiffs' lawyers, as recently as 2002 light cigarettes made up 85% of the tobacco industry's sales. Approximately 45% of smokers currently smoke light cigarettes.
The lead plaintiff in the case is Barbara Schwab. The original lawsuit was filed in 2004. Defendants in the case include Philip Morris, R.J. Reynolds, Brown & Williamson, and Lorrilard.
In addition to this class action suit, tobacco companies still face thousands of other lawsuits. Although tobacco companies won in Florida, the judge in that case left the opportunity for plaintiffs to file their suits separately. That leaves the possibility of tens of thousands of suits to be filed against tobacco companies.