Cigarette Makers Win Ruling in Federal Case

A federal judge refused to let Illinois smokers sue the tobacco industry as a group for the cost of monitoring their health, just days after a West Virginia judge allowed a similar class-action case to proceed. In a victory for Philip Morris Cos. and other cigarette makers, U.S. District Judge Ronald Guzman said the claims are too diverse to be grouped in one case. The class would include current and former smokers in varying states of health, Guzman wrote in his decision. The plaintiffs would have to “demonstrate a causal connection between the alleged misconduct and the damages--namely that the defendants’ deceptive advertising caused each class member to smoke,” Guzman said. “On a class-wide basis, this will be impossible to prove.” Philip Morris said the ruling is just the latest in a series of similar decisions by federal judges. Only state courts have permitted class-action suits to proceed against the industry. On the NYSE, shares of Philip Morris rose $1.98 to close at $47.23, R.J. Reynolds Tobacco Holdings Inc. rose $1.13 to close at $55.98, and Loews Corp. rose 74 cents to close at $56.73. British American Tobacco’s American depositary receipts rose 51 cents to close at $15.60 on the American Stock Exchange.