Philip Morris Says Judge Decertifies Class-Action Suit

Altria Group Inc.’s Philip Morris USA, the largest U.S. tobacco company, said it won a bid Wednesday to overturn a ruling that allowed Californians to sue as a group over the marketing of “light” cigarettes.

Superior Court Judge Ronald S. Prager in San Diego County decertified the class, saying that Proposition 64 applied to the case, according to Altria.

The proposition, which was approved by California voters in November, makes it more difficult to sue companies on unfair-competition claims. It requires plaintiffs -- specifically individuals -- to prove that they personally have suffered injury or financial loss because of a company’s behavior before they are allowed to sue for deceptive advertising or other fraudulent behavior.

Since November, companies have asked California judges to dismiss suits filed before the law’s enactment.

Prager’s ruling, if upheld, means that consumers may have to file separate lawsuits. That would be more costly and give them less leverage to negotiate a settlement.

“We believe the judge’s ruling was appropriate in light of the law and should dispose of the case,” said William S. Ohlemeyer, Philip Morris USA’s associate general counsel.

The lawsuit, which began in 1997, claimed that Philip Morris and other tobacco companies targeted minors and misled the public about the dangers of “light” cigarettes. The court dismissed those claims in November 2004.

Donald Hildre, an attorney for the plaintiffs, didn’t return a telephone call seeking comment.

Bloomberg News was used in compiling this report.