Louisiana U.S. District Court certifies largest class action suit in history against 16 tobacco companies

Business Wire, Feb 20, 1995

NEW ORLEANS--(BUSINESS WIRE)--Feb. 20, 1995--When Dianne Castano decided to sue the tobacco companies for the death of her nicotine-dependent husband, Peter, she didn't know she would be speaking for tens of millions of smokers worldwide dependent on nicotine. Today, U.S. District Court Judge Okla Jones, II gave the go ahead to proceed with a history-making, nationwide class action lawsuit against the tobacco companies.

"Unlike earlier tobacco cases, the tobacco industry was able to place blame on smokers by claiming that they chose to smoke, thus inflicting harm upon themselves. In the Castano Tobacco Litigation, the tobacco industry will have to take responsibility for its conduct and malicious actions. The industry should receive a message that it can no longer engage in this sort of behavior," said Elizabeth Cabraser of Lieff, Cabraser & Heimann in San Francisco, a member of the Castano Tobacco Plaintiffs' Legal Committee (PLC). Cabraser along with another PLC member Diane Nast of Kohn Nast & Graf, P.C. of Philadelphia argued the case in front of Judge Jones in December, 1994.

The Castano Tobacco Litigation charges the tobacco companies with fraud and misrepresentation, alleging that these companies concealed from the public facts that the amount of nicotine in manufactured cigarettes can be controlled and manipulated. The case further argues that this was done knowingly by the tobacco companies to create and sustain dependency to tobacco products. In addition, millions of advertising and promotional dollars are spent by the tobacco companies annually to target highly impressionable population segments, such as youth, women and minorities in order to ensure a next generation of smokers. An estimated three thousand new smokers are needed daily for tobacco companies to maintain their current profit margins.

Judge Jones' Class Certification Order reads as follows:

It is ordered that plaintiffs' motion for class

certification is granted in part, pursuant to

Fed.R.Civ.P 23(b) (3) and 23 (c) (4), only in regard to

the liability issues of fraud, breach of warranty

(express or implied), intentional tort, negligence,

strict liability and consumer protection and punitive

damages issues.

It is further ordered that plaintiffs' motion for class

certification is denied in all other respects.

It is further ordered that the court defines the class

as follows;

(a) All nicotine-dependent persons in the United

States, its territories, possessions and the

Commonwealth of Puerto Rico, who have purchased

and smoked cigarettes manufactured by the

defendants;

(b) the estates, representatives, and

administrators, of these nicotine-dependent

cigarette smokers; and,

(c) the spouses, children, relatives and

"significant others" of these nicotine-dependent

cigarette smokers as their heirs or survivors.

It is further ordered that "nicotine-dependent," as

used in the class definition, shall be defined as:

(a) all cigarette smokers who have been diagnosed

by a medical practitioner as nicotine-dependent;

and/or

(b) all regular cigarette smokers who were or have

been advised by a medical practitioner that

smoking has had or will have adverse health

consequences who thereafter do not or have not

quit smoking.

It is further ordered that the forgoing certification

shall be deemed conditional only and may be altered,

amended or set aside at any time before a decision on

the merits.

It is further ordered that, pursuant to Fed.R.Civ.P. 23

(c) (2), plaintiffs show cause as to the best notice

practicable to all members of the class.

It is further ordered that plaintiffs propose a

discovery plan to the United States Magistrate Judge by

March 15, 1995.

It is further ordered that defendants file objections,

if any, to this discovery plan with an alternative

discovery plan by April 1, 1995.

It is further Ordered that the United States Magistrate

Judge conduct a hearing as soon thereafter as feasible

with respect to the proposed discovery plan(s) and,

following this hearing, issue a Discovery Order to

guide discovery in this matter. It is further ordered

that the Clerk of Court establish a Pleadings

Depository in accord with the decision.

Peter Castano, one of the persons for whom the case was filed, was a lifelong resident of New Orleans and began smoking as a teenager. Castano, died at the age of 47 from lung cancer leaving behind his wife, Dianne and two young children. Despite numerous attempts to quit, Castano was dependent on nicotine and unable to quit smoking cigarettes. His wife Dianne approached longtime family friend and in fact, Peter's best friend, Wendell Gauthier to consider filing a lawsuit against the tobacco companies. Information uncovered in the Congressional Hearings in the Spring of 1994 opened the door for a group led by Wendell Gauthier to file the Castano lawsuit, revealing that the tobacco industry knew that nicotine was addictive and created dependency, long before they were required to post warnings on cigarette packaging, and then concealed this information from the public.