$28-Million Ruling Against Altria Upheld

A California appeals court Friday upheld a $28-million punitive damage award against Altria Group Inc.’s Philip Morris USA Inc. in the case of a longtime smoker who died three years ago.

The ruling comes in the case of Betty Bullock, who was awarded $28 billion by an L.A. jury in 2002; the award was reduced to $28 million by the trial judge.

On Friday the state appeals court rejected a request to overturn the reduced award by Philip Morris, which argued it was excessive based on the $850,000 in compensatory damages Bullock was awarded. Punitive damages in most cases have been capped at a 10-1 ratio by the U.S. Supreme Court.

The lawsuit was brought by Bullock, who smoked Philip Morris’ Marlboro and Benson & Hedges cigarettes from 1956 until she was diagnosed with lung cancer in 2001.

Shares of New York-based Altria rose 50 cents to $70.54.