LANGUAGE

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.