Minnesota, Insurer Claim Tobacco Fraud, Conspiracy

Minnesota and its largest private health insurance provider sued the nation’s tobacco industry Wednesday for conspiracy, fraud and antitrust violations.

The lawsuit filed in Ramsey County District Court seeks to recover the costs incurred by the state and by Blue Cross-Blue Shield for treatment of smoking-related illnesses.

The lawsuit alleges an antitrust conspiracy and consumer fraud against tobacco companies.

“Previous lawsuits have said the tobacco companies should pay because their products are dangerous,” state Atty. Gen. Hubert Humphrey III said. “This suit says they should pay because the conduct . . . is illegal.”

The defendants are Philip Morris Inc., R. J. Reynolds Tobacco Co., Brown & Williamson Tobacco Corp., B. A. T. Industries P. L. C., Lorillard Tobacco Co., The American Tobacco Co., Liggett Group Inc., The Council for Tobacco Research-U.S.A. Inc. and The Tobacco Institute Inc.

“Most of these arguments have been heard and rejected by juries consistently over the last 40 years,” Reynolds said in a statement.

Blue Cross-Blue Shield said it is the first corporate health services buyer to sue the tobacco industry over smoking-related issues.

State officials estimate that more than $350 million is spent annually in Minnesota to pay the health care expenses for cigarette-caused death and disease. Humphrey said about 6,000 people in the state die each year from causes related to smoking.

Humphrey said the tobacco industry conspired to suppress research and keep safer cigarettes off the market. He also said the tobacco industry promised the public it would help discover the truth about the health effects of smoking, then lied for 40 years.

In May, Mississippi became the first state to sue the tobacco industry for money spent treating illnesses caused by smoking.

Last month, Philip Morris began a court challenge to Florida’s anti-tobacco law, considered the nation’s toughest.