Federal Court Dismisses Third-Party Payer Suit Against R.J. Reynolds Tobacco Company/Industry
August 29 2006 - 6:22PM
PR Newswire (US)
WINSTON-SALEM, N.C., Aug. 29 /PRNewswire-FirstCall/ -- R.J.
Reynolds Tobacco Company is pleased that a Federal District Court
in Massachusetts has dismissed a lawsuit brought against the
company and other tobacco manufacturers by United Seniors
Association, Inc. (United Seniors). This is the fourth federal
court to dismiss claims against the tobacco industry under the
Medicare as a Secondary Payer law. United Seniors was seeking to
recover medical expense reimbursements made by Medicare since Aug.
4, 1999, to treat Medicare recipients for illnesses attributable to
cigarette smoking. "This ruling confirms yet again that these types
of lawsuits simply lack merit," says Martin L. Holton III, deputy
general counsel for litigation at R.J. Reynolds. In his ruling,
Judge Richard G. Stearns stated: "This case is a reprise of claims
against the tobacco industry brought by the federal government in
the late 1990's seeking to recoup Medicare costs incurred in
treating smoking- related illnesses ... These efforts by the
government came largely to naught, with most courts rejecting the
government's various theories of tobacco company liability." The
motion to dismiss was argued on June 29. R.J. Reynolds Tobacco
Company, an indirect subsidiary of Reynolds American Inc.
(NYSE:RAI), is the second-largest tobacco company in the United
States, manufacturing about one of every three cigarettes sold in
the country. The company's brands include five of the 10
best-selling U.S. cigarette brands: Camel, Kool, Winston, Salem and
Doral. For more information, visit http://www.rjrt.com/.
DATASOURCE: R.J. Reynolds Tobacco Company CONTACT: David Howard of
R.J. Reynolds Tobacco Company, +1-336-741-3489 Web site:
http://www.rjrt.com/
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