Altria Group (NYSE:MO) had a court victory against claimants seeking class-action status concerning light cigarettes offered by the company, as four lawsuits filed against the cigarette maker were rejected concerning being allowed to proceed in class-action status.
Canaccord said, "A district court of Maine refused to grant class-action status to four suits leveled against Altria’s Philip Morris unit by smokers seeking refunds for light cigarettes. Smokers have alleged the tobacco company relied on deceptive advertisements in marketing its low-tar cigarettes; they claim that Philip Morris used descriptors to suggest the brands were less harmful than regular cigarettes, even though it knew users would be getting the same level of tar or nicotine from them. But the district court of Maine, which is coordinating multi-district litigation from several states on the matter, said that each state’s class includes everyone who purchased light cigarettes in the relevant limitations periods, which necessarily includes people who knew light cigarettes weren’t healthier than others."
The court ruled that "Those class members were not injured by the defendants’ misconduct and thus do not have standing. Furthermore, in view of the proliferation of information decrying the health risks of all cigarettes there is no telling how many potential class members are similarly situated.”
Altria isn't out of the legal waters yet though, as there are 15 more lawsuits waiting in the wings to be ruled on. Lawyers for Altria are optimistic this ruling will be persuasive concerning the remaining lawsuits and believed they'll be denied class status as well.
Altria closed Monday at $24.43, gaining $0.07, or 0.29 percent.
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