Friday July 24, 4:04 pm Eastern Time
Company Press Release.
Philip Morris Applauds Dismissal of Indiana Case
Decision Follows Trend Against Medicaid Lawsuits
NEW YORK--(BUSINESS WIRE)--July 24, 1998--In a sweeping decision that should have a profound impact across the country, an Indiana court today dismissed in its entirety the state attorney general's case seeking Medicaid reimbursement from cigarette manufacturers.
''Today's decision extends a string of victories in which state and federal courts recognized that the so-called ''health care reimbursement cases'' are based on flawed legal theories,'' said Gregory G. Little, associate general counsel for Philip Morris, the country's largest cigarette company. ''We are delighted to see that courts across the country are following the law and ignoring the politics of tobacco litigation.''
In addition to the common-law claims seeking reimbursement of its Medicaid expenses, the Indiana case sought damages for alleged conspiracy, antitrust violations, consumer protection violations, unjust enrichment, intentional breach of an assumed duty, public nuisance and criminal mischief and deception. All of these claims were dismissed.
In dismissing the entire case, the court said that the state ''cannot recover damages allegedly caused by the Defendants because the injuries are derivative and too remote.''
This rationale has been applied in recent rulings by state and federal courts in Alabama, California, Florida, Iowa, Maryland, Pennsylvania, Washington, and West Virginia, dismissing similar claims.
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