The judge overseeing a US$ 200 billion lawsuit by smokers of ‘light’ cigarettes against Altria Group's Philip Morris unit said the case will not go forward until an appeals court rules on whether it may proceed as a class action.
The decision means it is unlikely that US District Judge Jack B. Weinstein in Brooklyn, New York, will be asked to block Altria's planned spin-off of its Kraft Foods unit, which is scheduled for March 30.
Michael Hausfeld, who represents the nationwide class of light cigarette smokers suing tobacco companies in the Brooklyn case, said he is considering a legal move to block the Kraft deal, to help ensure that Altria can pay if he wins the case. An injunction blocking the spin-off, which would likely be overturned on appeal, could delay the spin-off.
In addition to Altria, defendants in the Schwab case include Reynolds American, Brown & Williamson Tobacco, Lorillard Tobacco, BAT and Liggett Group. (pi)