Executive Summary of the Case Against the Tobacco Industry

In: Business and Management

Submitted By khahmad
Words 2252
Pages 10
Contents Key Players 2 Prosecution 2 Defense 2 The Case 2 Available Statistics 3 Political Spending 3 Prior Litigation 3 The Strategy 4 Liggett Breaks Away 4 First Round of Talks 5 First Round Negotiations 6 Problem Assessment after First Round of Negotiations 6 Solutions 6 Second Round of Talks 7 Second Round Negotiations 7 Problems during the Second Round of Negotiations 7 Third Round of Talks 8 Resolution of Issues 8 The Settlement 8

Key Players
Prosecution
1. Mike Moore, Attorney General Mississippi 2. Bob Butterworth, Attorney General Florida 3. Dickie Scruggs, Plaintiff Lawyer 4. Scott Harshbarger, Attorney General Massachusetts

Defense 1. Steven Goldstone, CEO RJR Nabiasco 2. Geoffrey Bible, CEO Philip Morris 3. Martin Broughton, Head of B. A. T. (parent company of Brown and Williamson)

The Case
The negotiation took place between the five largest tobacco companies of the United States, namely, Philip Morris, R. J. Reynolds, Brown and Williamson, U. S. Tobacco and Lorillard, and the Attorneys General of several states of America, where the later accused the former of burdening the taxpayer with costs of tobacco-related illnesses through the Medicaid Program, and for breaking the law by selling their product to children under the age of 18.
The prosecution wished for the defense to: 1. Accept the responsibility of the illnesses and deaths caused due to the use of their product. 2. Pay a heavy compensation for the Medicaid costs of tobacco-related illnesses, in product liability. 3. Fund massive antismoking campaigns aimed particularly at teens. 4. Be liable to pay penalties if the targets of reduction in the underage usage of their product were not achieved. 5. Be regulated by the Food and Drug Administration (FDA) in terms of manufacture, marketing and distribution…...

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