R.J. Reynolds fights $23.6 billion verdict
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Camel, a Reynolds American brand, and Newport, a Lorillard brand, cigarettes are arranged for a photo Tuesday, July 15, 2014 in Philadelphia. Reynolds American Inc. is planning to buy rival Lorillard Inc. for about $25 billion in a deal to combine two of the nation's oldest and biggest tobacco companies.(Photo: Matt Rourke AP)R.J. Reynolds, a subsidiary of Reynolds American, is following through with its vow to fight a court verdict totaling $23.6 billion in punitive damages.On July 28, the second-largest tobacco company filed for a post-trial hearing in a Florida federal appeals court to challenge a July 19 lawsuit verdict for a widow whose husband who was a longtime smoker.In its post-trial filing, the maker of Camel, Winston and Newport brand cigarettes said that the punitive award would result in "economic castigation" to the company, asserting that its "stipulated net worth between 2006 and 2008 averaged approximately $8 billion.""We feel that this (the verdict) is grossly excessive," Reynolds American CEO Susan Cameron told CNBC on Friday. "We believe that it is not legal in the state of Florida, nor constitutionally. We feel the court will and should set it aside."But the plaintiff's attorney, Christopher Chestnut, insisted that "no one lawsuit was going to cripple the company.""They (Reynolds) were making billions of dollars in the '50s," Chestnut said. "The company made it clear that $100 million wasn't big enough to send a message. They're arrogant."The case was originally a part of the class-action Engle-Progeny lawsuit against big tobacco companies in 1994. The Florida Supreme Court rejected the…
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