Smith v. Philip Morris Companies

A class action lawsuit against major tobacco companies argued that the companies fixed prices following “Marlboro Friday,” a day in 1993 in which a Philip Morris retail promotion lowered the price of Marlboros by approximately 20 percent. The class action represented Kansas purchasers of cigarettes who alleged that the tobacco companies conspired to fix the wholesale price of cigarettes in violation of state law. The court ruled that the class had failed to provide evidence proving price fixing and affirmed an earlier judgment in favor of the tobacco companies. In particular, the court found that the class failed to provide evidence that the tobacco companies were actively colluding with each other and not acting independently in changing prices.

Smith v. Philip Morris Companies, Inc., No. 108,491, Kan. Ct. App. (July 18, 2014).

  • United States
  • Jul 18, 2014
  • Court of Appeals of Kansas
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Parties

Plaintiff Daric Smith, on behalf of himself, and all others similarly situated

Defendant

  • British American Tobacco Co. Ltd.
  • Brooke Group, Ltd.
  • Brown & Williamson Tobacco Corp.
  • Liggett Group, Inc.
  • Lorillard Tobacco Co.
  • Philip Morris Companies, Inc.
  • Philip Morris Incorporated
  • Philip Morris International, Inc.
  • R.J. Reynolds Tobacco Company

Legislation Cited

Kansas Restraint of Trade Act, K.S.A. 50-101 et seq.

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"The tobacco manufacturers apparently hung together to the bitter end in carrying out the health conspiracy. Yet in the price­fixing conspiracy that allegedly arose after 40 years of hiding the facts about the health effects of tobacco, competition among the claimed coconspirators resulted in dramatic shifts in market share, rendering some of them winners and others clear losers. All of this leads us to conclude that the existence of the health conspiracy does not have a tendency in reason to prove that Defendants also engaged in the alleged price­fixing conspiracy. The health conspiracy does not constitute a plus factor."