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Tobacco Exec Stuns Observers Deposition Says Nicotine Can Be Addictive Drug

Date: 19970822/P
Length: 4 pages
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Abstract

While testifying in Florida's lawsuit against the tobacco industry in 1997, Philip Morris CEO Geoffrey Bible admitted that cigarettes were addictive and may have killed more than 100,000 smokers. He also said under oath that when scientists prove that cigarettes caused lung cancer, he would order the company's plants to stop production immediately. Here are the key portions of Mr. Bible's testimony: Mr. Motley [plaintiff's attorney]: Would Philip Morris agree that a single American citizen who smoked their products for 30 or more years has ever died of a disease caused in part by smoking cigarettes?

Mr. Bible: I think there's a fair chance that one would have, yes. Might have.

Mr. Motley: How about a thousand?

Mr. Bible: Might have.

Mr. Motley: A hundred thousand?

Mr. Bible: Might have.

Asked what he would do with his manufacturing plants if scientists proved "that cigarettes were a cause of lung cancer," Mr. Bible said he would "shut it down instantly."

Lorillard chairman and CEO Alexander Spears also testified in the same trial. He said he "didn't think any Americans dies of diseases caused by cigarette smoking." He also said that if scientists proved cigarettes were cancer-causing, he would continue to make cigarettes "until the government padlocked his doors."

Today, in 2003, under a section entitled "Health Issues," Philip Morris's web site says:

"We agree with the overwhelming medical and scientific consensus that cigarette smoking causes lung cancer, heart disease, emphysema and other serious diseases in smokers." http://www.philipmorrisusa.com/health_issues/cigarette_smoking_and_disease.asp According to attorney Dick Daynard of the Tobacco Products Liability Project at Northeastern University School of Law in Boston, Bible's testimony doesn't have any force of law, but could be "damned persuasive to a jury."

Fields

Notes

Thanks to Bert Hirschhorn for reminding us about this important testimony.

Quotes

Tobacco Exec Stuns Observers Deposition says nicotine can be addictive drug

08/22/97 by Mark Cerriden/The Dallas Morning news

The top executive of the nation's largest cigarette maker stunned lawyers and political observers Thursday when he said under oath that nicotine is a drug and could be addictive and that cigarettes may have killed more than 100,000 smokers.

Geoffrey Bible, chief executive officer of Philip Morris cos., testified in a deposition that if and when scientists prove that cigarettes were causing lung cancer, he would order the company's manufacturing plants to stop production immediately.

Mr. Bible's testimony in West Palm Beach, Fla., represents a dramatic shift in legal strategy by the tobacco industry from earlier sworn testimony by cigarette executives that their products are neither dangerous nor addictive.

Although Mr. Bible's comments were surprising, including to many of his company's defense lawyers, legal analysts say the testimony was undoubtedly preplanned and well-calculated to gain support in Congress for the proposed $368.5 billion legal settlement. My making these limited concessions, the industry is trying to show that it will be more cooperative and more truthful with investigators, experts say.

Plaintiff's lawyers suing Big Tobacco believe the statements can only strengthen their court cases.

"I was shocked at his admissions," said trial lawyer Ron Motley, who questioned Mr. Bible in the state of Florida's lawsuit against the tobacco companies. Florida, Texas and 37 other states have sued the industry seeking reimbursement of the tens of billions of dollars they have spent in Medicaid costs due to smoking-related illnesses.

"This is a complete reversal in the tobacco industry's stance," said Mr. Motley. "I think they know legally that they are in trouble with their long-held position of total denial."

Mr. Bible and Philip Morris officials declined to comment on the deposition. An industry lawyer downplayed the testimony, calling it "pretty uneventful."

Steven Goldstone, the CEO of RJR Nabisco Inc., the nation's No. 2 cigarette maker, was scheduled to be questioned under oath Friday morning.

Earlier this month, Bennett S. LeBow, chief executive officer of Liggett Group Inc., the smallest of the U.S. cigarette manufacturers, testified under oath that nicotine is addictive and causes cancer. However, the other tobacco companies downplayed Mr. LeBow's admissions as being influenced by the financial settlement his company reached with the state attorneys general in March.

In contrast, Lorillard chairman and CEO Alexander Spear testified in April that he "didn't think any Americans die of diseases caused by cigarette smoking." And he said even if scientists proved they were cancer-causing, he would continue making cigarettes until the government padlocked his doors.

Also earlier this year, another Philip Morris executive compared cigarettes to gummy bears candy in addictiveness.

Legal experts say Thursday's disclosures by Mr. Bible are considerably more significant because Philip Morris, which controls more than 50 percent of the nation's cigarette sales, dictates the financial, legal and political strategies for the industry....

...Although Mr. Motley and other anti-smoking lawyers have noticed a gradual evolution by tobacco lawyers toward admitting the risks of cigarettes, many were shocked Thursday when the words actually left Mr. Bible's lips.

Mr. Motley: Would Philip Morris agree that a single American citizen who smoked their products for 30 or more years has ever died of a disease caused in part by smoking cigarettes?

Mr. Bible: I think there's a fair chance that one would have, yes. Might have.

Mr. Motley: How about a thousand?

Mr. Bible: Might have.

Mr. Motley: A hundred thousand?

Mr. Bible: Might have.

Asked what he would do with his manufacturing plants if scientists proved "that cigarettes were a cause of lung cancer," Mr. Bible said he would "shut it down instantly."

"I think if that were to happen, my first reaction would be to very quickly see what it was that was causing the difficulty, and see quickly if we could remove it, address it satisfactorily," he said.

Mr. Bible was also asked whether he believes cigarettes are addictive. "Behaviorally it is, perhaps," he answered. "It certainly is not pharmacologically addictive."

He did not explain the legal disparity between the two, though lawyers said it gives the industry a little "wiggle room" in the courtroom to assert that smokers can quit if they really want to.

Company
Lorillard
Author
Mark Cerriden, The Dallas Morning News
Recipient
Grefe & Sidney
Region
United States
Named Organization
Philip Morris
Liggett Group
RJR Nabisco
Litigation
Feda/Produced
Named Person
Motley, Ronald, L., ESQ. (Attorney)
Helped states sue tobacco companies to help recoup Medicaid costs of treating sick smokers. Helped bring about Master Settlement Agreement.
Bible, Geoffrey C. (PM President & CEO (1994-2002))
After a long career with Philip Morris, the Australian-born Bible served as the company's CEO from 1994 until he reached the company's mandatory retirement age in 2002.
Spears, Alexander White, III (LOR President & CEO)
Associated with CTR, used as an expert in the Mississippi case.
LeBow, Bennett S. (Liggett, President & CEO, 1990-93)
Bennett S. LeBow was President and Chief Executive Officer of Liggett Group, Inc. from 1990 through 1993. He was on the Board of Directors from 1988 to 1989. He was employed by Brook Group, Ltd. and served as Chairman, President, Chief Executive Officer, Treasurer and was on the Board of Directors from 1994 to 1995. (N.M., L & M Liability Notebook, Section 3, Personnel List). LeBow was an investor who purchased the Liggett Group Inc. from Grand Metropolitan PLC in 1986 (L. White, Merchants 1988). Grand Metropolitan PLC was the parent of the Liggett Group and Liggett & Myers Inc. from 1980 to 1986 (E. Whelan 1984, Merchants 1988). The Liggett Group was sold by Grand Metropolitan PLC to investors Robert E. Gillis and Bennett S. LeBow in 1986. GrandMet kept Alpo (L. White, Merchants 1988).
Goldstone, Stephen F. (CEO of RJR/Nabisco - 1997-)
Type
COMP, COMPUTER PRINTOUT
NEWS, NEWSPAPER ARTICLE
Subject
addiction
health effects
cancer
lawsuit
settlement
Corporate strategy
corporate responsibility
Corporate image

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Page 1: gpt68c00
08/23/97 SAT 11:26 FAX 515 245 4452 GREFE & SIDNEY . 3045 obacco exec stuns observers ® http://w,-,--,4allasnews.eom/in-the-news-nf/bizl2.htm Mr. Bible: I think there's a fair chance that one would have, yes. Might have. Mr. Motley: How about a thousand? Mr. Bible: Might have. Mr. Motley: A hundred thousand? Mr. Bible: Might have. Asked what he would do with his manufacturing plants if scientists proved "that cigarettes were a cause of lung cancer," Mr. Bible said he would "shut it.down instantly. "I think if that were to happen, my first reaction would be to very quickly see what it was that was causing the difficulty, and see quickly if we could remove it, address it satisfactorily," he said. Mr. Bible was also asked whether he believes cigarettes are addictive. "Behaviorally it is, perhaps," he answered. "It certainly is not pharmacologically addictive." He did not explain the legal disparity between the two, though lawyers said it gives the industry a little "wiggle room" in the courtroom to continue to assert that smokers can quit if they really want to. 0 Back to Top 0 Send a letter to the editor about this stoev C16ack to Too story Sndexes ma -~~CYCy4Sa+v ~ h.iF..eti10.. ® 1991 The Dallas MomingNcws I~CtL[L~.R9:@SVl ~L'.ilfl ZI sitss.„no : .C«n,aoL 4 of4 08n7/97 os58:07
Page 2: gpt68c00
08/23/97 SAT 11:25 FAX 515 245 4452 Lobacco exec stum observers 0 Top stoty summaries The Front Pa¢e GREFE & SIDNEY JDDd3 http;//w* allasnews. c om/imthe-news-n f/bizl2.htm Tobacco exec stuns observers Deposition says nicotine can be addictive drug 08/22/97 By Mark Curriden I The Dallas Morning News The top executive of the nation's largest cigarette maker stunned lawyers and political observers Thursday when he said under oath that nicotine is a drug and could be addictive and that cigarettes may have killed more than 100,000 smokers. Geoffrey Bible, chief executive officer of Philip Morris Cos., testified in a deposition that if and when scientists prove that cigarettes were causing lung cancer, he would order the company's rnanufacturin.g plants to stop production immediately. Mr. Bible's testimony in West Palm Beach, Fla., represents a dramatic shift in legal strategy by the tobacco industry from earlier sworn testimony by cigarette executives that their products are neither dangerous nor addictive. Although Mr. Bible's comments were . surprising, including to many of his company's defense lawyers, legal analysts say the testimony was undoubtedly preplanned and well-calculated to gain support in Congress for the proposed $368.5 billion global settlement By making these limited concessions, the industry is trying to show that it will be more cooperative and more truthflil with investigators, experts say. Plaintiffs' lawyers suing Big Tobacco believe the statements can only strengthen their court cases. "I was shocked at his admissions," said trial ' lawyer Ron Motley, who questioned Mr. Bible in the state of Florida's lawsuit against the ; tobacco companies. Florida, Texas and 37 other~ states have sued the industry seeking I of4 08rZ2/97c8:57:57
Page 3: gpt68c00
08/23/97 SAT 11:26 F.4S 57.5 245 4452 GREFE & SIDNEY ®p4,{ i obacco exec stuns observers - ~ http://waim-iaIlasnews.com/in-the-news-nf/bizt2.hlm on how Mr. Bible s sworn testimony might affect the case. But legal experts say having the industry's leader admit that their product "might have" killed 100,000 people cannot be helpful to the defense in a courtroom filled with jurors. "This is extremely prejudicial to the industry's defense in their trials, but extremely beneficial in the passage of the settlement," said Mr. Morales. "With all the political, legal and health care pressures, it is difficult for the tobacco companies to continue the lie. Three years ago, they could credibly lie about these things. Essentially, they now know they have been caught and are backed up against the wall." Mr. Morales said people should realize that Ms. Bible's admissions were not part of some "sudden, on-the-spot confession," but part of a "calculated, well-thought-out response" designed to curry favor as Congress and the president consider the global settlerrient. The deal, which is awaiting President Clinton's approval, would require the tobacco companies to pay $368.5 billion over the next 25 years to pay for smoking-related health care costs, cessation and anti-smoking campaigns, and to eliminate most forms of cigarette advertising. ?n return, the industry would be immune from all future class action lawsuits and would receive futuse financial predictability. Mr. Bible and Mr. Goldstone played key roles in convincing anti-smoking lawyers that their companies were serious about negotiating a settlement agreement by meeting with the other side on April 1. Industry officials say . Thursday's statements were simply an extension of that. "We're trying to show the politicians in Washington that this is the new,kinder, more truthful and responsible cigarette maker," said ann industry lawyer who spoke on the condition he not be identified. Although Mr. Motley and other anti-smoking lawyers have noticed a gradual evolution by tobacco lawyers toward admitting the risks of cigarettes, many were shocked Thursday when the words actually left Mr. Bible's lips. Mr. Motley: Would Philip Morris agree that a single American citizen who smoked their products for 30 or more years has ever died of a disease caused in part by smoking cigarettes? 3 of 4 08/22f47 09:59:06
Page 4: gpt68c00
08/23/97 SAT 11:25 FAX 515 245 4452 GREFE & SIDNEY 3 DAa exec stuns observers r http://wvnS lasnews.com/.in-tbe-news-r.f/bizI2.htrn reimbursement of the tens of billions of dollars they have, spent in Medicaid costs due to smoking-related illnesses. "This is a complete reversall in the tobacco industry's stance," said Mr. Motley. "I think they know legally that they are in trouble with their long held position of total denial" Mr. Bible and Philip Mon•is officials declined to comment on the deposition. An industry lawyer downplayed the testimony, calling it "pretty uneventful." Steven Goldstone, the CEO of RJR Nabisco Inc., the nation's No. 2 cigarette maker, was scheduled to be questioned under oath Friday morning. Earlier this month, Bennett S. LeBow, chief executive officer of Liggett Group Inc., the smallest of the U.S. cigarette manufacturers, testified under oath that nicotine is addictive and causes cancer. However, the other tobacco companies downplayed Mr. LeBov~s admissions as being influenced by the financial settlement his company reached with the state attorneys general in March. In contrast, Lorillard chairman and CEO Alexander Spears testified in April that he didn't "think any Americans die of diseases caused by cigarette smoking." And he said even if scientists proved they were cancer-causing, he would continue making cigarettes until the government padlocked his doors. Also earlier this year, another Philip Morris executive compared cigarettes to gummy bears candy in addictiveness. Legal experts say Thursday's disclosures by Mr. Bible are considerably more significant because Philip Morris, which controls more than 50 percent of the nation's cigarette sales, dictates the financial, legal and political strategies for the industry. CX) "This is a 180-degree change by the industry," ~ said Texas Attorney General Dan Morales, N~l whose Medicaid lawsuit against the industry is \1p scheduled to begin trial Sept. 29. "This is co clearly a signif cant development helping the 0\ states' cases." 014 Lawyers representing Phi lip Morris in the Texas Medicaid lawsuit declined to comment of4 08122197 Q8:58:06

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