R.J. Reynolds Tobacco Company Applauds Dismissal of Third-party Lawsuit in Pennsylvania
11/05/99
Allegheny General had sued the industry claiming that industry actions increased the costs and lowered the effectiveness of treatment provided to Medicaid, indigent and non-paying patients who allegedly suffered from tobacco-related illnesses.
In its decision, the District Court dismissed all federal antitrust and RICO claims. The Court also dismissed a wide range of additional state-law claims, including fraudulent misrepresentation, fraudulent concealment, negligent misrepresentation and omission, breach of special duty, public nuisance, aiding and abetting, civil conspiracy, restitution/unjust enrichment, indemnity and quantum meruit.
``We applaud the court's thorough analysis and ultimate conclusion that there was no merit to any of the hospital's claims against the
tobacco industry,'' said Thomas F. McKim, assistant general counsel for R.J. Reynolds
Tobacco Company.
``This ruling is consistent with at least a dozen state and federal rulings (including three federal appellate court decisions -- the 2nd, 3rd, and 9th Circuits), that third-party payers, like Allegheny General Hospital, are too remote from any alleged damage to have standing to sue,'' he said. ``All of these courts have correctly determined that cases of this type have absolutely no basis in law.''
R.J. Reynolds
Tobacco Company is a wholly owned subsidiary of R.J. Reynolds
Tobacco Holdings, Inc.. R.J. Reynolds
Tobacco Company is the second-largest
tobacco company in the United States, manufacturing about one of every four
cigarettes sold in the United States. Reynolds Tobacco's product line includes four of the nation's ten best-selling cigarette brands: Winston, Camel,
Salem and Doral.