More Nicaragua Suit Info. (fwd)

[Robert Weissman <rob@essential.org>]

Thursday December 10, 11:51 am Eastern Time

Company Press Release

Another Latin American Country Files Suit in the
U.S. Against Tobacco Companies

HOUSTON--(BUSINESS WIRE)--Dec. 10, 1998--The Republic of Nicaragua today
filed suit in Puerto Rico against 11 tobacco organizations -- nine
manufacturers and
distributors of tobacco and two related entities -- becoming the second
country in Latin America to seek restitution in the
United States for costs associated with the treatment of smoking-related
illnesses. Filed in federal district court by the
Houston law firm of Fleming, Hovenkamp, & Grayson, P.C., the suit pursues
damages on behalf of Nicaraguan public health
care organizations for past and future costs resulting from the conduct of
foreign tobacco companies that virtually control the
cigarette market in Nicaragua. The Republic of Guatemala filed a similar
suit in Washington, D.C., last May. 

The defendants in the lawsuit include: the Liggett Group, Brooke Group,
British American Tobacco/B.A.T. Industries, British
American Tobacco (Investments) Limited/British American Tobacco Co., Brown &
Williamson Tobacco Corporation, Philip
Morris Companies, Philip Morris Incorporated, Philip Morris Sales, Philip
Morris International, The Tobacco Institute, and
the Council for Tobacco Research-U.S.A. 

Dr. Julio Centeno Gomez, the Attorney General of Nicaragua, said he retained
Fleming, Hovenkamp, & Grayson to represent
his country against the tobacco companies because Nicaragua, with its
population of more than four million people, has been
forced to incur substantial expenses for decades in order to provide public
health care and related benefits to its residents for
tobacco-related illnesses. ``Nicotine consumption in Nicaragua is like a
permanent Hurricane Mitch plague on the society of
our country,'' he said. ``We want to prevent tobacco companies from
profiting at our expense, creating a financial burden on
our resources that becomes the legacy we leave our children and the future
generations of Nicaraguans.'' 

Nicaragua's lawsuit alleges that the defendants have conspired to conceal
scientific and medical information about the health
risks associated with their tobacco products for the sole purpose of
ensuring, maintaining and maximizing their profits. In order
to carry out their conspiracy, the defendants formed The Tobacco Institute
and the Council for Tobacco Research, which
actively participated in the campaign to conceal and suppress the hazards of
cigarette smoking. In addition, the lawsuit claims
that the defendants have violated the provisions of the Racketeering
Influenced and Corrupt Organizations Act (RICO) and
the Sherman Act. 

``We can show that these defendants have conspired to deceive Nicaragua as
to the negative effects of cigarette smoking and
the addictive properties of nicotine since at least December 1953 in order
to continue profiting from the sale of cigarettes to
Nicaraguan residents,'' said Attorney George M. Fleming. ``In 45 years,
incalculable damage has been done to this country
that could have been prevented if the defendants had not conspired to
control competition and conceal important independent
research that identified the true dangers associated with tobacco use --
chronic disease and death -- for which the Republic of
Nicaragua has had to pay the price.'' 

The law firm of Fleming, Hovenkamp & Grayson, P.C. focuses on complex
litigation matters. In addition to representing the
Republics of Guatemala and Nicaragua, Fleming, Hovenkamp, & Grayson
represents the Union Health and Welfare Funds
for the states of Louisiana and Georgia against tobacco companies for
similar costs associated with smoking-related illnesses,
as well as serving on the Executive Committee for U.S. national union
pension fund tobacco litigation. 

For a complete copy of the lawsuit filed on behalf of Nicaragua in federal
district court in Puerto Rico, visit Fleming,
Hovenkamp & Grayson's Website at http://www.fhg-law.com. 

Contact: 

     Fleming Hovenkamp & Grayson P.C., Houston
     D'Lisa R. Simmons or Andres C. Pereira, 800/654-7139
     http://www.fhg-law.com