Philip Morris USA, RJ Reynolds Tobacco and Lorillard negotiated a USD 100 million (EUR 88.3 million) settlement of nearly all Engle progeny cases pending in federal courts, the tobacco companies said.
“This agreement presented a unique opportunity to essentially close out the federal docket, and we are pleased to put the federal Engle litigation behind us,” said Jeff Raborn, vice president and assistant general counsel for RJ Reynolds. "With respect to the cases pending in state court, we will continue to defend them vigorously, which includes appealing adverse verdicts.”
PM USA and RJRT each will pay USD 42.5 million and Lorillard USD 15 million under terms of the agreement, which requires approval of all parties, PM USA said.
Engle progeny cases stem from a class action on behalf of Florida smokers bearing the name of Howard Engle, a deceased physician. A Miami jury initially held the tobacco companies liable for USD 145 billion in punitive damages, but the judgement later was ruled excessive by the Florida Supreme Court. The court allowed plaintiffs to file individual damage suits making use of findings from the initial trial.