West Virginia court dismisses key claims in state Medicaid suit against tobacco industry, criticizes attorney general for misleading public

Business Wire, May 3, 1995

NEW YORK--(BUSINESS WIRE)--A West Virginia Circuit Judge today dismissed the key elements of the state's Attorney General's lawsuit against the tobacco industry. The suit, one of four pending in states across the country, sought to recover money spent on behalf of Medicaid recipients who smoke cigarettes.

In dismissing the claims, Circuit Judge Irene C. Berger harshly criticized the lawsuit as well as public statements by West Virginia Attorney General Darrell McGraw, Jr. The judge said it was improper for the attorney general to have implied that he would recover millions of dollars from the tobacco industry. Such remarks by state officials, the judge said, undermine the public confidence in the judiciary and the legal profession.

The judge's decision was based on the Attorney General's lack of authority to assert the claims that were dismissed.

Today's decision left only two claims remaining, those for alleged consumer fraud and antitrust violations. Philip Morris will ask the court to dismiss those claims as well.

"We welcome today's ruling, and we believe the judge properly dismissed these claims," said Charles Wall, senior vice president and associate general counsel for Philip Morris. "We believe the remainder of the case also is improper as a matter of law, and we are hopeful those claims, too, will be dismissed."

Claims dismissed are: restitution-unjust enrichment; public nuisance; negligent performance of a voluntary undertaking; fraud and intentional misrepresentation; conspiracy; concert of action; injunctive relief; and declaratory judgment.

CONTACT: Philip Morris Companies Inc.

Ellis Woodward, 212/880-3568 (Office)

212/687-7132 (Home)