Venezuela Sues Tobacco Cos. (fwd)

[Robert Weissman <rob@essential.org>]

 January 27, 1999 

 Dow Jones Newswires

 Venezuela Sues U.S. Tobacco Industry For
 Treatment Costs

 Dow Jones Newswires

 MIAMI (AP)--The Venezuelan government sued Philip Morris Inc. (MO),
 R.J. Reynolds Tobacco Co. and others in the U.S. tobacco industry
 Wednesday, becoming the second country seeking to recover the public
 health-care costs of treating sick smokers.

 "For decades, Big Tobacco's conduct has caused an incalculable loss of life,
 disease, disability, pain, suffering, illness and economic loss to the
users of Big
 Tobacco's products," said the suit filed in Miami-Dade County Circuit Court.

 The suit seeks billions of dollars in damages, said attorney Steven Marks,
 who is representing Venezuela in the claim. "We have hired economists who
 have participated with the World Health Organization to calculate the
 damages."

 Venezuela claims it suffered economic losses because of decreased
 productivity of its labor force, lost taxes and lost gross national product.

 "It mirrors the state and federal claims that were filed against the tobacco
 companies," Marks said. "It's similar to what we've seen across the country ...
 Venezuelan lives are worth just as much as American lives."

 Defendant British American Tobacco Co. Ltd. (BTI), which makes Lucky
 Strike, Kent and other cigarettes, controls about 76% of the Venezuelan
 cigarette market. Philip Morris Inc. controls most of the remaining market,
 the suit said.

 Venezuela tried to negotiate for 10 months with the tobacco companies -
 seeking restrictions or limits on cigarette marketing, increased education on
 the dangers of smoking and additional cancer research and awareness, Marks
 said.

 "We sought a lot of political solutions before bringing the suit," Marks said.

 "They had no interest in trying to even address any of our concerns. Many of
 the companies refused to even meet to discuss the concerns of the
 government," he said.

 He said the few that did respond "had absolutely no intention of even
 discussing a settlement of economic or non-economic concerns. We never
 discussed dollars and cents. They immediatly closed that door."

 The suit was filed in Miami because defendant the Brooke Group Ltd. Inc. is
 based in the city and the city has ties to Venezuelan government and business
 offices. Miami is also better suited to hear a case involving a
 Spanish-speaking country, Marks said.

 Big Tobacco has controlled virtually the entire cigarette market in
 Venezuela. The companies also knew their products were addictive and
 caused illness that killed Venezuelans, the suit said.

 "For decades, Big Tobacco's has conspired to conceal the truth about their
 tobacco products, information ... regarding the health risks associated with
 and caused by their tobacco products, for the sole purpose of ensuring,
 maintaining and maximizing their profits," the suit said.

 Tobacco companies have also attempted to thwart or delay the country's
 attempts to reduce tobacco use, the suit claimed.

 Marks said his law firm - Podhurst, Orseck, Josefsberg, Eaton, Meadow,
 Olin and Perwin of Miami - is also preparing lawsuits on behalf of Ecuador
 and the Russian Federation.

 R.J. Reynolds hasn't seen the lawsuit and declined to comment, said company
 spokesman Nat Walker.

 The Brooke Group (BGL), which owns defendant Liggett Group Inc., also
 declined to comment, said Brooke spokesman Paul Caminiti.

 Guatemala became the first country last May to sue U.S. cigarette-makers to
 recover damages for treating sick smokers, and Brazil announced last month
 that it was planning to sue cigarette manufacturers operating there.


Wednesday January 27, 1:20 pm Eastern Time

Venezuela sues tobacco industry in Miami

MIAMI, Jan 27 (Reuters) - The government of Venezuela sued the tobacco industry
Wednesday to recover the costs of treating sick smokers, a lawyer
representing Venezuela
said.

The lawsuit filed in Miami-Dade County Circuit Court named 20 tobacco
companies, affiliated companies and industry
institutions including Philip Morris Cos. Inc. (NYSE:MO - news), the largest
U.S. cigarette maker. It will seek ``many billions of
dollars'' in damages, attorney Steve Marks said.

Marks said the lawsuit seeks to recoup the costs to the state of treating
sick smokers, similar to claims made in lawsuits filed by
U.S. states against the industry.

Nicaragua and Guatemala have filed similar lawsuits against the tobacco
industry, which settled the U.S. claims last year.

``The claims are similar to other state governments' lawsuits,'' Marks said.
``The tobacco companies marketed to and targeted
children, they knowingly concealed the addictive and dangerous nature of
their products.''

Marks said his Miami law firm also was consulting with the governments of
Ecuador and Russia and would likely file lawsuits on
behalf of those countries.