Humphrey explains Minnesota's Tobacco Lawsuit

by Attorney General Hubert H. Humphrey III

In August of 1994, Minnesota joined with Blue Cross and Blue Shield of Minnesota to become the first state to launch a unique consumer fraud and antitrust lawsuit against seven tobacco companies and two tobacco trade associations. Here are some of the most common questions that I encounter about our allegations.

What's this case about?
Here is the bottom line: We allege that the tobacco industry broke laws, caused tremendous harm in the process, and must now clean up and pay up just like anyone who breaks the law.

Here is what the case is about: Consumer fraud laws say you can't lie to consumers, but documents show the tobacco industry lied about the health effects of tobacco. Antitrust laws say you can't get together to manipulate the market, but documents show that the industry got together to keep safer products off the market. It's that simple.

Don't smokers knowingly take the risk?
That's not the question posed in this case. This case is about the industry's behavior, not smokers'. It's about whether the industry lied and broke the law. That is what makes it unique.

What are you seeking?
The same thing we expect of all people who break the law-for the tobacco industry to clean up their act and pay up for the harm caused by illegal behavior.

How much money are you seeking?
In 1994, the annual tobacco-related health costs were $470 billion. We're now calculating how much of that is born by taxpayers and Blue Cross customers. But we want more than just money. We want them to stop marketing to kids. We want them to fund programs to help people to stop smoking. We want them to disclose the truth.

But don't tobacco taxes more than pay for the health costs of tobacco borne by the taxpayers?
Paying taxes does not give anyone a license to break the law. We all pay taxes, but we all are still expected to obey the law. The tobacco industry is no exception.

Isn't this antibusiness?
Absolutely not. Businesses are paying more of the health-related tobacco costs than anyone through health premiums. The majority of law-abiding businesses shouldn't be forced to subsidize a handful of businesses that profit by breaking the laws that everyone else must obey.

Why are we out to topple a legal business?
We're not. We're out to enforce the law. We expect businesses operating in Minnesota to obey the law, and there is no exception in our laws for the tobacco industry.

What's next, alcohol or other unhealthy products?
Only if there is evidence they illegally lied about their product. This is not about the product; it's about the legality of the industry's behavior.

Why do you think you can win where others have lost?
Minnesota has the strongest state laws, the strongest legal team, and we've won the most early battles. That's why someone the Wall Street Journal called "the top rated tobacco analyst" said the Minnesota suit poses "the biggest threat."

How is your legal team unique?
Between the state, Blue Cross, and our outside counsel, we've got more expertise and resources than anyone who has taken on tobacco.

Why not settle with Liggett Companies like the other states?
Given Minnesota's strong position, we want to see a ban on marketing to kids, damages commensurate to the harm done, and the truth disclosed. That settlement had none of those things.

Where is the case now?
It's moving along. The court rejected the tobacco company's motions to dismiss the case, dismiss Blue Cross as our co-plaintiff, and delay disclosure of tobacco documents. We have five million documents in Minnesota and Great Britain, and we expect to have around 15 million before this is over. We're on-track for a 1998 trial date.

What's up with all the subpoenas being sent to non-profits around the state?
The tobacco companies recently served subpoenas on 32 entities in connection with Minnesota's pending lawsuit. These include numerous local health care organizations and the St. Paul and Minneapolis school boards, as well as several national organizations, including the National Association of Governors and the National Association of Attorneys General. Entities that have received a subpoena may contact Susan Nelson, one of the attorneys at the Robins Kaplan law firm who is representing the State and Blue Cross/Blue Shield, at 612-349-9723.

The tobacco industry broke the laws that everyone else must obey, and we want them to clean up their act and pay for the harm their illegal behavior has caused. For more information about this issue, please feel free to contact my office.

Reprinted with permission from the State of Minnesota, Office of the Attorney General, 1997.


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