Tobacco On Trial

Monday, April 25, 2005

The defense questioned FTC economist Dr. Mulholland on his written direct examination this morning. Phillip Morris lawyer Dan Webb established FTC’s policy of encouraging the advertisement of tar and nicotine levels with the aim to increase consumer demand for low tar cigarettes therefore encouraging competition in the development of this product. It was also established that the FTC believed that advertising the Tar and nicotine levels was a communication of health information to the consumer.

On Thursday, April 21, the Defense offered its list of 17 witnesses whom it may call to rebut DOJ’s proposed remedies, should Defendants be found guilty of RICO violations.
The DOJ’s remedies are concentrated on public health and on removing the companies’ incentives to profit from any damage their actions may cause to the health […]

The following is illustrative of the level of contentiousness we may hear at the live testimony of long-time FTC economist Dr. Joseph Mulholland on Monday.
The below is from Dr. Mulholland’s Written Direct Examination, as prepared by the Defense:
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Q: Dr. Mulholland, do you believe that the FTC has been effective in its regulation of the […]

Apr 22, 2005, 9:20 AM (Corrected file download)
Get ready for some contentious testimony this Monday, April 25. Dr. Mulholland is testifying under subpoena, against the wishes of both himself and the FTC, and his written direct, prepared by the Defense, is riddled with markups and corrections.
The testimony covers the history of FTC investigations and […]

Apr 21, 2005, 10:57 PM
If I know anything about Judge Kessler, who is not exactly Judge Poker-Face, and if I know anything about body language, it’s that when you see Judge Kessler holding her head up with both hands, you know something is going terribly wrong, and you’d better find a way to change your […]

B&W/Reynolds lawyer David Bernick began the defense’s Interim Summation this morning by saying the DOJ’s RICO case is “in a shambles” and can’t “legally or factually be salvaged.”
He said there is no proven RICO “enterprise.” The government’s “association in fact” cannot be construed as a RICO enterprise. He said even at the Plaza hotel meeting […]

Last Wednesday, April 13, Defense brought in another economist to shoot holes in DOJ expert witness testimony; this time the target was Dr. Michael Eriksen’s testimony that “defendants’ advertising and marketing are ’substantial contributing factors’ to youth smoking initiation.”
But this time the marksman did not seem a tobacco-chewing denizen of the academic backwoods, but was […]

Monday: Howard Willard (cont’d), David Beran (Philip Morris USA Executive Vice President of Strategy, Communications and Consumer Contact)

Tuesday: Order 924 (Remedies schedule) issues in AM; then Beran (cont’d)

Wednesday: Recess

Thursday: Interim Summations
2 hours each side, we will break by 2:45 PM.

Next week (April 25): Recess
I don’t know where this leaves the testimony of FTC witness Dr. […]

Judge Kessler on Sunday issued Order #924, setting the schedule for production of remedies witnesses, documents and depositions for each side.
She notes in her order that Defense remedies witnesses will be called the week of May 23.
She denied most of the Defense requests for discovery, but allowed limited discovery of Dr. Gruber documents, and […]

Apr 12, 2005, 10:07 PM
DOJ attorney Renee Brooker seems to have done some damage to the testimony of Howard Willard, Philip Morris USA’s Senior Vice President, Youth Smoking Prevention and Corporate Responsibility
She attacked PM-USA’s “YSP Partition Policy,” which is intended to wall off the YSP department’s teen smoking information from the rest of the company. […]