Jump to full article: Dunn (NC) Daily Record, 2002-04-05
Author: LISA FARMER / Managing Editor
Intro: A federal judge has ruled that a lawsuit filed by tobacco growers and quota holders alleging bid-rigging against cigarette manufacturers can be class action.
This allows all other quota holders and tobacco holders to be included although they not have signed the original litigation. According to Keith Parrish of Coats, U.S. Judge William Osteen presiding in Greensboro made the ruling Wednesday. This means there are now 500,000 plaintiffs, Mr. Parrish said.
"It's a good day for farmers. A lot of folks were feeling very desperate," he said.
The lawsuit has been several years in progress. First, high-profile attorney Alexander Pires had to get farmers committed. Then, it has been waiting in the court system and going through changes.
Originally, farmers and quota holders were suing because of the master settlement distribution from cigarette manufacturers. That suit maintained the federal and state attorney generals and cigarette companies ignored the farmers in their deliberations and subsequent compensations.
However, Mr. Parrish said, the lawsuit has evolved and now it is an anti-trust suit. . .
The litigation now maintains the cigarette companies acted in collusion by price fixing and creating an environment deterimental to tobacco farmers and quota holders.
Mr. Parrish said no matter where you went in the tobacco market or what state, the prices cigarette companies were offering for tobacco were the same. "Everything was bringing the same price," he said.
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