Vending Machine Firms Sue Philip Morris

Six cigarette vending machine companies filed a $100-million lawsuit against Philip Morris Cos. for alleged price discrimination in the sale of cigarettes. The suit claims that New York-based Philip Morris discriminates against the vending machine owners by giving rebates, buybacks and other promotional fees to other merchants that result in lower wholesale cigarette prices. The companies, which filed the suit in U.S. District Court in Nashville, claim Philip Morris’ rebate practices caused $100 million in damage to vending companies nationwide. The six companies include B&G; Enterprises of Los Angeles. Philip Morris shares rose 56 cents to close at $46.81 on the New York Stock Exchange.