Tobacco Agreement Illegal, Federal Class Action Alleges

12/16/1998

Under the above headline an Oklahoma newspaper announced a class action filed in a Tulsa federal court by two Oklahoma attorneys which alleges that "the multibillion-dollar settlement reached between tobacco companies and states is illegal, in part because it penalizes tobacco users rather than producers."

According to the suit the settlement violates antitrust laws because it guarantees tobacco producers will not be damaged economically and claims tobacco companies, acting jointly, raised their prices to pass on the cost of the settlement over health care costs.

Perhaps most importantly, they argue consumers were denied due process because they are paying the settlement costs without having had a chance to be involved in the proceedings and that attorneys general had no authority to sign the agreement because they don't have the legal right to regulate interstate trade.

"This would effect settlements signed by 46 states totalling $206 billion," the article said.

The lawsuit was filed by attorneys Jon D. Sellers and Bill Sellers on behalf of two Oklahoma City men, representing a class that the lawsuit numbered at 40 million smokers in the United States.

The suit wants the settlement declared void and damages of up to $400 million awarded and as much as $1.5 billion returned to people who purchase cigarettes.

The lawsuit describes the settlement agreement as a sham to assess damages and taxes against smokers. It seeks a permanent injunction with damages and other relief plus an injunction to prevent the tobacco companies from collecting any more money from the plaintiffs and $75,000 for costs and attorneys fees from each of the companies as well as a judgment of more than $75,000 against each of the defendants.

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COMMENT

It's about time! Finally someone is doing exactly what needs to be done. Let's wish them 100% success.

We are currently trying to find out how to contact the attorneys and see if there is anything we and similar groups can do to support their effort. It certainly deserves it.

If their suit succeeds we may even be able to overturn Skip Humphrey's deal here in Minnesota!

* * *

If you follow the news it's getting ridiculous. As usual, it's all about money. Not only are attorneys general suing the tobacco industry, there is all sorts of in-fighting within the states as to who gets to keep it.

Now Big Cities want in on the gold rush! At this rate pretty soon every anti-smoker will want a million or two for themselves.

And in St. Louis a case is before the court in which 50 county hospitals want a piece of the action, contending that "to be shut out now could block them from pursuing their own claims against Big Tobacco."

Ha! Unless they are smokers they have no taste at all of what it's like to be "shut out."

"Greed is good!" has become the national mantra.

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