Philip Morris Sued for Consumer Fraud, Marketing `Light' Cigarettes with Health Claims; Suit Claims Industry Documents Show Deliberate Consumer Deception.

PHOENIX--(BUSINESS WIRE)--May 13, 1999--

A new class action lawsuit filed against Philip Morris claims "light" cigarettes are as potent and dangerous as regular cigarettes, and that the company has tricked consumers -- many of them teenagers -- into believing these "low yield" cigarettes are healthier.

Internal memos quoted in the suit suggest that Philip Morris has known for decades that "light" cigarettes offer no health benefits, but the company continues to mount advertising campaigns claiming the products expose smokers to less tar and nicotine.

The lawsuit was filed May 13 in Arizona's Maricopa County Superior Court by plaintiffs Julie Cocca, Lee Rappleyea, and Nancy Stinnett, represented by attorney Steve Berman of Hagens Berman & Mitchell. The lawsuit seeks class action status for all "light" and "ultra-light" cigarette consumers in the state of Arizona.

The plaintiffs allege they switched to light cigarettes believing they were less dangerous and delivered less nicotine and tar than regular cigarettes. According to Berman, Philip Morris violated the Arizona Consumer Fraud Act with misleading advertising containing implied health benefits, then unlawfully profited from booming "light" cigarette sales at the expense of plaintiffs' health.

Philip Morris' own research documents show that cigarette and filter designs -- not tobacco chemistry -- differentiate "light" or "low yield" cigarettes from regular cigarettes. According to Berman, Philip Morris deliberately designed "light" cigarettes to produce less tar and nicotine on Federal Trade Commission (FTC) smoke testing machines than in the hands and mouths of human smokers.

"Philip Morris knew they had to design light cigarettes to deliver as much nicotine as regular cigarettes or they would wean  their fastest-growing market off the drug," said Berman, who recently represented Arizona in the Attorney General's lawsuit against Big Tobacco.

"Evidence we uncovered in the Arizona state suit shows that tobacco companies knew the designs were deceptive, and that FTC tar and nicotine ratings published in ads were false, but they never communicated this to consumers. When you compare this evidence with the health claims Philip Morris is still making in light cigarette advertising today, it's blatantly deceptive behavior," said Berman.

Berman also claims the industry recognizes "light" cigarettes as particularly effective for encouraging adolescents to smoke. A Philip Morris document Berman uncovered during the Arizona state suit states, "As low-yield brands become more popular among adults (given that they may) modeling behavior may lead adolescents to smoke them as well. Furthermore, such brands may become considered `safer,' thus leading teenagers to pay less attention to public health campaigns designed to encourage initiation."

The lawsuit also refers to "compensation," a smoking phenomenon virtually unknown to the public. Philip Morris' own research cited in the suit finds that smokers typically have daily nicotine intake quotas and compensate for "light" cigarette designs by smoking more often and inhaling more deeply to get the drug their bodies crave.

In addition to damages for consumers, the class action demands public health action from Philip Morris, including funding a corrective public education campaign on "light" cigarettes, and smoking cessation programs in the state of Arizona. If successful, the suit will also force Philip Morris to publicly disclose all research and findings on "light" cigarettes and stop marketing these tobacco products as "light" or "ultra light."

Steve Berman represented Arizona and 12 other states against Big Tobacco in attorney general lawsuits filed between 1994 and 1998. Berman spearheaded the Washington State tobacco trial in the fall of 1998, and with partner Steve Mitchell was an inside negotiator in the watershed Liggett and national settlements that brought more than $360 billion in damages for the states.