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Florida Ruling Puts Tobacco Industry In A Spot

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The judge in Floridas Medicaid lawsuit claiming $1 billion from cigarette makers refused on Wednesday to force the state government to prove its costs for each of an estimated 400,000 sick smokers.

The grouping of claims is central to Floridas case, now making its way toward an Aug. 4 trial, and the judges denial of the tobacco industry request was one of the few victories he has allowed the state in two weeks of pretrial hearings.

Palm Beach County Circuit Judge Harold Cohen has reduced the number of defendants on some counts, eliminated $16 billion in state claims for future costs of treating sick smokers through Medicaid, and done away with one category of punitive damages based on alleged wrong doing by tobacco makers.

 

In Wednesdays ruling, Cohen turned down a tobacco industry request that Florida prove its costs for each Medicaid patient on an individual basis if cigarette companies should be found liable by a jury.

Cohen also ruled in Wednesdays pretrial hearing that the state cannot use as evidence against the cigarette makers allegedly false statements by industry officials to government bodies such as legislatures.

Florida maintains the tobacco industry conspired to hide the dangers of smoking and misled Americans through advertising and lobbying.

Floridas lawyers may still use advertising and other evidence to prove its case, Cohen said.

Anderson Berly, one of Floridas attorneys, said the tobacco companies had not won much in the pretrial hearings.

They still face punitive damages for (alleged) false statements made to the public about the risks of cigarette smoking and triple the $1 billion in real damages for their (alleged) wrongdoing (under the states racketeering law), Berly said.

Later Wednesday, Cohen ruled that the federal government would have to formally request a share of any monies awarded to Florida on the fraud and conspiracy counts in the lawsuit.

If the federal government doesnt ask for what it is entitled, then it (the money) should go back to the defendants, Cohen said.

Under the present federal/state funding formula for Medicaid in Florida, Washington would be entitled to 55 per cent of the dollars recovered under the lawsuit.

Florida is one of 40 states suing cigarette makers over the public health costs of treating sick smokers.

The lawsuits helped bring about the sweeping settlement pact announced last month in which cigarette makers agreed to pay $368.5 million over 25 years.

Florida is seeking $1 billion in actual damages, which could be tripled if the state can prove the tobacco companies engaged in criminal conduct in the sale and marketing of cigarettes.

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First Published: Jul 04 1997 | 12:00 AM IST

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