Tobacco.org

• CORRECTED: Big Tobacco Found Guilty 

Several tobacco companies were found guilty of deceptive business practices on Monday in a case brought by Blue Cross Blue Shield, which sought to be reimbursed for funds it allegedly spent on smoking-related costs, as a jury ruled that the companies must pay up to $17.8 million in damages.

In the case -- a third-party payor complaint on behalf of health care plans -- Blue Cross Blue Shield sought reimbursement of alleged smoking-related medical care costs that were incurred by health care plans. Blue Cross sued in a Brooklyn, N.Y. court for direct claims on their own behalf and on behalf of their subscribers.

All of the defendants except for British American Tobacco Plc (BATS.L) (AMEX:BTI - news) were found guilty of deceptive business practices. The companies were ordered to pay Blue Cross Blue Shield either $17.8 million in direct liability or $11.8 million in non-direct liability, which would go to Blue Cross Blue Shield's subsidiary companies.

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• Empire BlueCross Tobacco Suit in Closing Arguments (Update1) 

Lawyers for U.S. tobacco companies told a Brooklyn, New York jury that cigarette makers didn't mislead Empire BlueCross Blue Shield customers and should not have to pay damages to the insurer for the cost of treating sick smokers.

In closing arguments today in federal court in Brooklyn, Peter Bleakley, an attorney for Philip Morris Cos., said the insurer, New York's largest, is not entitled to recover anything. In addition, Bleakley said the company has made efforts to produce a safer cigarette. . .

``Empire has the burden of demonstrating that Empire is entitled to a whole bunch of money,'' Bleakley said. ``(I expect) you're going to conclude that Empire has failed to reach its burden.''

In arguments earlier today, Empire's attorney, Vincent Fitzpatrick, said cigarette makers put profits ahead of the safety of their customers, resulting in the deaths of hundreds of thousands of Americans every year.

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