DOCKET for USA v. PHILIP MORRIS USA, et al May 12-May 14, 2015

May 18, 2015 10:45 pm by Gene Borio

Date Filed # Docket Text

05/12/2015 MINUTE ORDER: A Motions Hearing is hereby set in this case for May 19, 2015, at 10:30 a.m. Signed by Judge Gladys Kessler on 5/12/15. (CL, ) (Entered: 05/12/2015)

05/12/2015 Set/Reset Hearings: Motion Hearing set for 5/19/2015 10:30 AM in Courtroom 26A before Judge Gladys Kessler. (CL, ) (Entered: 05/12/2015)

05/14/2015 6144 NOTICE of Appearance by Amir Cameron Tayrani on behalf of ALTRIA GROUP, INC., PHILIP MORRIS USA INC. (Tayrani, Amir) (Entered: 05/14/2015)

6143 - STATEMENT OF POINTS AND AUTHORITIES IN SUPPORT OF UNOPPOSED MOTION FOR AN ORDER AUTHORIZING TRANSFER OF CERTAIN CIGARETTE BRANDS AND BUSINESSES TO ITG BRANDS, LLC 4/30/15

May 11, 2015 1:28 pm by Gene Borio

The PDF is Here

EXCERPT:

This Court’s Final Judgment and Remedial Order, Order #1015, allows a defendant to transfer cigarette brands and businesses to a non-defendant when the entity acquiring the assets “submits itself to the jurisdiction of the Court” and “applies for and obtains” an order from the Court “subjecting it to the provisions” of Order #1015 as of the date of transfer. Non-party ITG Brands, LLC (“ITG Brands”) seeks to acquire certain cigarette brands and businesses from two defendants. Accordingly ITG Brands seeks an order permitting it and two of its U.S. affiliates to submit to this Court’s jurisdiction . . .

The moving parties have met and conferred with plaintiffs, the United States and Intervenors, regarding their motion. Plaintiffs have authorized the moving parties to state that plaintiffs do not oppose the motion or the relief requested. The moving parties are also authorized to state that defendants Altria Group Inc. and Philip Morris U.S.A., Inc. do not oppose the motion or the relief requested.

The moving parties also respectfully request expedited consideration of their motion and related pleadings.

END EXCERPT

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6142 - UNOPPOSED MOTION FOR AN ORDER AUTHORIZING TRANSFER OF CERTAIN CIGARETTE BRANDS AND BUSINESSES TO ITG BRANDS, LLC 4/30/15

May 11, 2015 1:19 pm by Gene Borio

The PDF is Here

EXCERPT:

Three affiliated entities engaged in U.S. cigarette operations, ITG Brands, LLC (“ITG Brands”), Commonwealth Brands, Inc. (“Commonwealth”), and Commonwealth-Altadis, Inc. (“Commonwealth-Altadis”) (collectively the “(Proposed) Post-Judgment Parties Regarding Remedies”), respectfully ask this Court to make them parties to this litigation for the sole and limited purpose of submitting to this Court’s jurisdiction and becoming subject to certain provisions of Order #1015, as supplemented and modified by later orders (collectively “Order #1015”), to allow the orderly transfer of certain cigarette brands, brand names, cigarette product formulas, and cigarette businesses.

END EXCERPT

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Special Master Order #91 - EXTENDING TIME FOR PLAINTIFFS’ FIRST PRIVILEGE CHALLENGE AGAINST LORILLARD MINNESOTA DOCUMENTS 4/4/15

May 11, 2015 1:11 pm by Gene Borio

The PDF is Here

EXCERPT:

Upon consideration of Plaintiffs’ Unopposed Motion For Extension of Time to Serve and File Their First Privilege Challenge Against Lorillard Documents Removed from the Minnesota Depository [ECF Doc. 6139] , and the entire record in this case, it is hereby

ORDERED that the Unopposed Motion is GRANTED; and it is further

ORDERED that Plaintiffs’ First Motion to Compel Production of Lorillard Documents Removed from the Minnesota Depository is now DUE April 22, 2015.

END EXCERPT

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6141 - NOTICE OF TRANSACTION INVOLVING DEFENDANTS R. J. REYNOLDS TOBACCO COMPANY AND LORILLARD TOBACCO COMPANY 4/7/15

May 11, 2015 1:04 pm by Gene Borio

The PDF is Here

EXCERPT:

[RJRT and LTC] have agreed to participate in a transaction that, as described below, will ultimately result in one Defendant-LTC-merging into another Defendant-RJRT. Set forth below are (A) a description of the transaction, (B) a brief explanation for why, in accordance with the terms described below, RJRT and LTC do not believe that this transaction requires this Court’s approval . . . the Government stated that “the United States is generally willing to accept [RJRT and Lorillard’s] representations,” but requested “that RJRT and Lorillard provide similar explanations and representations directly to the Court.” This Notice fulfills that request. Defendants have consulted with Plaintiffs, who have authorized RJRT and Lorillard to state that, based on the representations made in RJRT and Lorillard’s January 29 letter and set out herein, the United States and Intervenors concur that Court approval is not required under Paragraph 20 of Order #1015.

END EXCERPT

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DOCKET for USA v. PHILIP MORRIS USA, et al Apr 6-May 10, 2015

May 11, 2015 10:24 am by Gene Borio

Date Filed # Docket Text

04/06/2015 Set/Reset Deadlines: Motion to compel production of Lorillard documents removed from the Minnesota depository due by 4/22/2015. (zmm, ) (Entered: 04/06/2015)

04/07/2015 6141 NOTICE of Transaction by LORILLARD TOBACCO COMPANY, R.J. REYNOLDS TOBACCO COMPANY (Francisco, Noel) (Entered: 04/07/2015)

04/30/2015 6142 Unopposed MOTION for Order Authorizing Transfer of Certain Cigarette Brands and Businesses to ITG Brands, LLC, Pursuant to Order #1015, Paragraph 20 by LORILLARD TOBACCO COMPANY, R.J. REYNOLDS TOBACCO COMPANY (Attachments: # 1 Text of Proposed Order)(Francisco, Noel) (Entered: 04/30/2015)

04/30/2015 6143 MEMORANDUM re 6142 Unopposed MOTION for Order Authorizing Transfer of Certain Cigarette Brands and Businesses to ITG Brands, LLC, Pursuant to Order #1015, Paragraph 20 filed by R.J. REYNOLDS TOBACCO COMPANY, LORILLARD TOBACCO COMPANY by LORILLARD TOBACCO COMPANY, R.J. REYNOLDS TOBACCO COMPANY. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10)(Francisco, Noel) (Entered: 04/30/2015)

ORDER #91 granting 6139 Motion for Extension of Time to File

April 6, 2015 2:19 pm by Gene Borio

The PDF is Here

EXCERPT:

Upon consideration of Plaintiffs’ Unopposed Motion For Extension of Time to Serve and File Their First Privilege Challenge Against Lorillard Documents Removed from the Minnesota Depository [ECF Doc. 6139] , and the entire record in this case, it is hereby

ORDERED that the Unopposed Motion is GRANTED; and it is further

ORDERED that Plaintiffs’ First Motion to Compel Production of Lorillard Documents Removed from the Minnesota Depository is now DUE April 22, 2015.

END EXCERPT

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DOCKET for USA v. PHILIP MORRIS USA, et al Jan 1-Apr 6, 2015

April 6, 2015 2:12 pm by Gene Borio

EXCERPT:

04/03/2015 6139 Unopposed MOTION for Extension of Time to File and Serve Their First Privilege Challenge Against Lorillard Documents Removed from the Minnesota Depository by AMERICAN CANCER SOCIETY, AMERICAN HEART ASSOCIATION, AMERICAN LUNG ASSOCIATION, AMERICANS FOR NONSMOKERS’ RIGHTS, NATIONAL AFRICAN AMERICAN TOBACCO PREVENTION NETWORK, TOBACCO-FREE KIDS ACTION FUND, UNITED STATES OF AMERICA (Attachments: # 1 Text of Proposed Order)(Crane-Hirsch, Daniel) (Entered: 04/03/2015)

04/06/2015 6140 ORDER granting 6139 Motion for Extension of Time to File. Signed by Judge Richard Levie (Ret.) on 4/4/2015. (Levie, Richard) (Entered: 04/06/2015)

END EXCERPT

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US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT: BRIEF FOR THE UNITED STATES (Dec 1, 2014)

February 22, 2015 6:44 pm by Gene Borio

The PDF is Here

EXCERPT:

In this civil action under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961 et seq. (RICO), the district court found that Defendants for decades operated an illegal racketeering enterprise in violation of 18 U.S.C. § 1962(c) and conspired to do so in violation of 18 U.S.C. § 1962(d). Exercising its remedial authority under 18 U.S.C. § 1964(a), the court ordered Defendants to issue corrective statements to prevent and restrain them from committing future RICO violations, as the district court found them likely to do. The issue presented is whether the text of the corrective statements is consistent with this Court’s prior decision upholding the district court’s use of a correctivestatement remedy under 18 U.S.C. § 1964(a) and the Constitution.

END EXCERPT

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What We Talk about When We Talk about Corrective Statements

February 22, 2015 6:15 pm by Gene Borio

These are the statements at issue in the proceeding Monday morning—primarily the phrase,”deliberately deceived the American public” in the preamble to each statement.

EXCERPT FROM:

BRIEF FOR THE UNITED STATES

Dec 1, 2014

B. PROCEEDINGS ON REMAND

1. On remand, the district court determined the text of the five corrective statements:

A. Adverse Health Effects of Smoking

A Federal Court has ruled that the Defendant tobacco companies4 deliberately deceived the American public about the health effects of smoking, and has ordered those companies to make this statement. Here is the truth:

• Smoking kills, on average, 1200 Americans. Every day.

• More people die every year from smoking than from murder, AIDS, suicide, drugs, car crashes, and alcohol, combined.

• Smoking causes heart disease, emphysema, acute myeloid leukemia, and cancer of the mouth, esophagus, larynx, lung, stomach, kidney, bladder, and pancreas.

• Smoking also causes reduced fertility, low birth weight in newborns, and cancer of the cervix.

B. Addictiveness of Smoking and Nicotine

A Federal Court has ruled that the Defendant tobacco companies deliberately deceived the American public about the addictiveness of smoking and nicotine, and has ordered those companies to make this statement. Here is the truth:

• Smoking is highly addictive. Nicotine is the addictive drug in tobacco.

• Cigarette companies intentionally designed cigarettes with enough nicotine to create and sustain addiction.

• It’s not easy to quit.

• When you smoke, the nicotine actually changes the brain—that’s why quitting is so hard.

C. Lack of Significant Health Benefit From Smoking “Low Tar,” “Light,” “Ultra Light,” “Mild,” and “Natural” Cigarettes

A Federal Court has ruled that the Defendant tobacco companies deliberately deceived the American public by falsely selling and advertising low tar and light cigarettes as less harmful than regular cigarettes, and has ordered those companies to make this statement. Here is the truth:

• Many smokers switch to low tar and light cigarettes rather than quitting because they think low tar and light cigarettes are less harmful. They are not.

• “Low tar” and filtered cigarette smokers inhale essentially the same amount of tar and nicotine as they would from regular cigarettes.

•All cigarettes cause cancer, lung disease, heart attacks, and premature death—lights, low tar, ultra lights, and naturals. There is no safe cigarette.

D. Manipulation of Cigarette Design and Composition to Ensure Optimum Nicotine Delivery

A Federal Court has ruled that the Defendant tobacco companies deliberately deceived the American public about designing cigarettes to enhance the delivery of nicotine, and has ordered those companies to make this statement. Here is the truth:

• Defendant tobacco companies intentionally designed cigarettes to make them more addictive.

• Cigarette companies control the impact and delivery of nicotine in many ways, including designing filters and selecting cigarette paper to maximize the ingestion of nicotine, adding ammonia to make the cigarette taste less harsh, and controlling the physical and chemical make-up of the tobacco blend.

• When you smoke, the nicotine actually changes the brain—that’s why quitting is so hard.

E. Adverse Health Effects of Exposure to Secondhand Smoke

A Federal Court has ruled that the Defendant tobacco companies deliberately deceived the American public about the health effects of secondhand smoke, and has ordered those companies to make this statement. Here is the truth:

• Secondhand smoke kills over 38,000 Americans per year.

• Secondhand smoke causes lung cancer and coronary heart disease in adults who do not smoke.

• Children exposed to secondhand smoke are at an increased risk for sudden infant death syndrome (SIDS), acute respiratory infections, ear problems, severe asthma, and reduced lung function.

• There is no safe level of exposure to secondhand smoke.

JA 169-72 (November 2012 order setting out text of statements), JA437 (June 2014 order making small modifications to the text at the parties’ request).

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4 The statements disseminated by newspaper and television will specify Defendants—Altria, R.J. Reynolds Tobacco, Lorillard, and Philip Morris USA—in a rotating order. See, e.g., JA438, 440. The statements disseminated as package “onserts” and on company websites will list first the Defendant manufacturer of the relevant brand. See, e.g., JA446, 453.