Good news on litigation front-
Friday February 14 4:52 PM EDT
Philip Morris U.S.A. applauds dismissal of West Virginia reimbursement
claims
NEW YORK--(BUSINESS WIRE)--Feb. 14, 1997--A West Virginia judge has dismissed the essential claims of the attorney general's Medicaid lawsuit against the tobacco companies, ruling that two state agencies have no independent right to sue for personal injuries allegedly caused by smoking. The ruling, issued February 13, could have wide implications in every other state where similar lawsuits are pending.
Circuit Judge Irene C. Berger yesterday granted, in its entirety, the tobacco industry's motion to dismiss 11 of the 14 counts of a lawsuit brought by the state agencies. A motion to dismiss two of the remaining counts of this lawsuit is scheduled to be heard later this month.
In a six-page decision, Judge Berger ruled that the state agencies have no direct cause of action against cigarette manufacturers
to recover costs incurred in paying for the health care of individuals treated for alleged smoking-related diseases.
"This suit, like the other so-called Medicaid reimbursement suits filed by various attorneys general throughout the country is a
thinly disguised attempt to ignore established law," said Gregory G. Little, senior assistant general counsel for Philip Morris.
"We are delighted with Judge Berger's opinion, and we look forward to seeing a wave of similar dismissals of these baseless claims throughout the country in the coming months," said Mr. Little.
The stock was trading a few points higher in after hours trading on Friday. Let's hope that this news will lead to a further expansion in this company's price:earnings ratio. |
