Even More Lawsuits Hit Big Tobacco
Big tobacco companies are no stranger to lawsuits. Indeed, Altria (NYSE: MO ) and Reynolds American (NYSE: RAI ) take the threat of lawsuits in stride, as it is just an occupational hazard of working in the tobacco industry.
However, it seemed as if tobacco companies were catching a break last year when Reynolds reported that the number of pending "smoking and health" cases against the company had fallen from 352 in 2001 to just 69 in the third quarter of 2013. The number of health-care reimbursement cases fell from 62 to two over the same period.
Unfortunately, this revelation was followed by an order from a federal court. This order obliged the major U.S. tobacco companies to publish a series of corrective statements through advertisements on television, newspapers, and the Internet which stated that the companies had deceived customers about the health risks of smoking.
Now, yet more suits face the industry.