Tobacco Documents Online

i continued to lead the company's strong volume growth in Germany, while in Italy, Philip Morris products accounted for six of the top ten brands. In France, Chesterfield continued its strong upward share trend, and in Finland, L&M gained considerable share. In the Asia/Pacific region, the company delivered strong growth in Korea, Hong Kong, the Philippines, Indonesia and Japan. In Japan, the company's new ultra-low- tar product, Next, successfully launched last September, continued to grow strongly, reaching over one percent share of market. Coupled with strong growth from a number of the company's U.S.-heritage brands, these gains have driven Philip Morris' market share in Japan to an all-time high. The company continued to expand its international tobacco opera- tions in the second quarter, acquiring a majority interest in the Kharkov Tobacco Factory in the Ukraine. "Weld Signs Cigarette Law Authorizing Massachusetts to Sue Cigarette Makers for Smoking-Related Medicaid Costs" Wall Street Journal (07/12/94) P. B9; Geyelin, Milo Governor William Weld of Massachusetts has signed a measure authorizing the state's attorney general to sue cigarette makers in an effort to recoup smoking-related Medicaid costs. Massachusetts taxpayers spent over $500 million on smoking-related health care in 1988, according to a spokesman for the state Department of Public Health. The state attorney general's office is looking into launching a suit under the new law. The Massachusetts provision doesn't explicitly ban tobacco companies from employing any of their traditional legal defenses, unlike a similar Florida law which is being challenged as unconstitutional. Philip Morris Cos. is challenging the Florida measure. Charles Wall, the company's vice president and associate general counsel, said he doesn't think Philip Morris will go after the Massachusetts law. "Teamsters Say They Won't Attend Philip Morris Meeting" Reuters (07/i 1/94) The International Brotherhood of Teamsters says they have informed Philip Morris Cos. Inc. that they will not be attending a special institu- tional shareholders meeting scheduled for Wednesday. Bart Naylor, national coordinator for public affairs, said that the Teamsters wouldn't attend the meeting because "they would not be able to assure us they would be able to have outside directors." Naylor says the Teamsters were also requesting the presence of former Chief Executive Hamish Maxwell. Philip Morris announced it would be represented by top management, including Chairman William Murray t

and CEO Geoffrey Bible. The Teamsters, who own about $175 million of Philip Morris stock, say they continue to feel that a split of the food and tobacco operations into two separate units is in the best interests of shareholders. "Florida Judge Refuses to Delay or Dismiss Suit by Smokers" Miami Herald (7/9/94) P.28 A Dade judge Friday refused to dismiss or delay a class action suit brought by six Dade smokers who allege that the nation's major tobacco companies intentionally addicted their customers and conspired to hide information about the hazards of cigarette smoking. Attorneys for companies including R. J. Reynolds, Philip Morris, American Tobacco and Brown and Williamson told Dade Circuit Judge Harold Solomon that he is obligated to wait until a related federal case in Louisiana develops further. But Miami attorney Stanley Rosenblatt, who filed the Dade lawsuit in May, called the industry's move a ploy to postpone his clients' complaint forever. After Judge Solomon sided with Rosenblatt, the companies appealed his action to the Third District Court of Appeal. The firms hope the higher court will put off another hearing scheduled for this Tuesday on whether Rosenblatt's suit can be approved as a class action. "Joe Camel on Trial" Advertising Age (07/04/94) Vol. 65, No. 28, P. 1; Colford, Steven W. Last week, California's state Supreme Court declared that an unfair advertising suit against the Joe Camel campaign can go to trail. The court ignored the tobacco industry's longstanding argument that the 1969 Federal Cigarette Labeling & Advertising Act pre-empts state legal actions. Although the judges hearing the case didn't address whether the campaign targets children, Justice Armand Arabian wrote that "Congress left the states free to exercise their police power to protect minors from advertising that encourages them to violate the law." Peggy Carter, An RJR spokesperson, said, "We are quite confident that the facts will prevail and that the campaign is directed at all adult smokers." RJR attorney Joe Escher said a decision on appealing may not come for a month. Plaintiff Janet Mangini is seeking several million 'dollars from the tobacco company, claiming that "if we wiry, we will seek injunctive relief to reverse the impact of the Joe Camel campaign ... and we will ask for disgorgement of the illegally obtained money from the sales of Camels to kids." I