LABORERS LOCAL 17 HEALTH AND BENEFIT FUND V. PHILIP MORRIS, INC.
191 F.3d 229 (2nd Cir. 1999)
NATURE OF THE CASE: Philip Morris (D) appealed from a judgment denying their motion under
Fed. R. Civ. P. 12 (b)(6) to dismiss Laborers (P) action alleging D engaged in a conspiracy
to deceive the general public, and to deceive Ps specifically, with respect to the health
risks associated with smoking, in order to shift the health-related costs of smoking to Ps.
FACTS: P was organized under ERISA to provide health care benefits to their union
members. P claimed that D engaged in a deceptive advertising campaign designed to mislead
the public as to the true nature of cigarette smoking. P claimed that D actively concealed
information that would have demonstrated the actual health risks and D's own ability to
manufacture less addictive products. P alleged that these facts have not become known until
recently and that P has spent tens of millions of dollars to provide medical services for
its participants suffering from cigarette related diseases. P pled common law fraud, and
RICO violations and sued on its own right to recovery and not as a subrogation of its
members. D filed a motion to dismiss and it was not granted. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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