Philip Morris U.S.A. says it will prevail against Kansas Attorney General's Medicaid suit

Business Wire, August 20, 1996

NEW YORK--(BUSINESS WIRE)--Aug. 20, 1996--Philip Morris U.S.A. will vigorously defend this copycat lawsuit, and the company firmly believes it will ultimately prevail. The Kansas Attorney General has cast her lot with an unusual assortment of plaintiffs' lawyers and politicians from other states who believe they can ignore established product liability law and use courts to legislate public policy on tobacco.

"In her zealousness to jump on the bandwagon, the attorney general has ignored the fact that the state has no viable legal basis upon which to sue the cigarette manufacturers," said Gregory G. Little, senior assistant general counsel for Philip Morris. "The law does not follow what is perceived by some to be politically correct and ultimately the state of Kansas will lose and in the process waste millions of taxpayer dollars in time and costs," Little added.

All companies doing business in Kansas are now on notice that regardless of how minimal the existing legal support is for a lawsuit, if there are sufficient political grounds to be gained, the risk of being the target of a politically motivated suit is unavoidable. -0-

News advisory: Philip Morris U.S.A. today filed suit in New Jersey challenging the authority of that state's attorney general to file a similar lawsuit and to hire contingency fee lawyers.

CONTACT: Philip Morris U.S.A.

Dolly Colby, 212/878-2144