Tobacco Industry Found Liable

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Thursday | June 7, 2001

Tobacco industry found liable in health insurer suit 06/05/2001 From Wire Reports NEW YORK – A jury has found tobacco companies liable for deceptive business practices and ordered them to pay to up to $17.8 million to help cover the costs of treating ailing New York smokers. The mixed verdict on Monday followed a two-month trial in U.S. District Court pitting Empire Blue Cross and Blue Shield against Philip , R.J. Reynolds Co. and other cigarette makers.

The jury also decided that Empire had failed to prove fraud and other charges.

Philip attorney Bleakley said Empire was awarded only a fraction of the $800 million in damages it had sought.

Attorneys for Empire said they were disappointed with the outcome. But one, Bschorr, said the verdict was significant because it marked the first time a so-called "third-party payor" had prevailed against the tobacco industry for any amount.

Tobacco attorneys, who plan to appeal, claim such cases have no legal basis, noting that appeals courts have ruled that third-party plaintiffs are too remote to seek damages.

Martha Murdock, DirectorNational Silicone Implant FoundationDallas, Texas Headquarters

Purposes for which the Corporation (NSIF) is organized are to perform the charitable activities within the meaning of Internal Revenue Code Section 501©(3) and Texas Tax Code Section 11.18 ©(1).Specifically, the Corporation is organized for the purposes of education and research of Silicone-related disease.

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