Jump to full article: Reuters, 2001-06-04
Intro: 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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