EXHIBIT 99.1
CERTAIN PENDING LITIGATION MATTERS AND RECENT DEVELOPMENTS
As described in Item 3 of this Annual Report on Form 10-K and Note 16 to the
Company's consolidated financial statements included as Exhibit 13 hereto, there
are legal proceedings covering a wide range of matters pending in various U.S.
and foreign jurisdictions against the Company, its subsidiaries and affiliates,
including PM Inc. and Philip Morris International, and their respective
indemnitees. Various types of claims are raised in these proceedings, including
product liability, consumer protection, antitrust, tax, patent infringement,
employment matters, claims for contribution and claims of competitors and
distributors. Pending claims related to tobacco products generally fall within
three categories: (i) smoking and health cases alleging personal injury brought
on behalf of individual plaintiffs, (ii) smoking and health cases alleging
personal injury and purporting to be brought on behalf of a class of individual
plaintiffs, and (iii) health care cost recovery cases brought by governmental
and non-governmental plaintiffs seeking reimbursement for health care
expenditures allegedly caused by cigarette smoking. Governmental plaintiffs have
included local, state and certain foreign governmental entities.
Non-governmental plaintiffs in these cases include union health and welfare
trust funds, Blue Cross/Blue Shield groups, health maintenance organizations,
hospitals, native American tribes, taxpayers and others. The following lists the
pending claims included in the latter two of these categories and certain other
pending claims. Certain developments in these cases since October 1, 1998, are
also described. Prior developments in these cases are described in the Company's
Quarterly Reports on Form 10-Q.
SMOKING AND HEALTH LITIGATION
The following lists the smoking and health class actions pending against PM Inc.
and, in some cases, the Company and/or its other subsidiaries and affiliates,
including Philip Morris International, as of March 1, 1999, and describes
certain developments since October 1, 1998.
ENGLE, ET AL. V. R.J. REYNOLDS TOBACCO CO., ET AL., CIRCUIT COURT, DADE COUNTY,
FLORIDA, FILED MAY 5, 1994. The trial is currently underway.
GRANIER, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT, LOUISIANA, FILED SEPTEMBER 26, 1994.
CAPUTO (formerly LETOURNEAU) V. IMPERIAL TOBACCO LIMITED, ET AL., ONTARIO COURT
OF JUSTICE, TORONTO, CANADA, FILED JANUARY 13, 1995.
THE SMOKER HEALTH DEFENSE ASSOCIATION, ET AL. V. SOUZA CRUZ, S.A. AND PHILIP
MORRIS MARKETING, S.A., 19TH LOWER CIVIL COURT OF THE CENTRAL COURTS OF THE
JUDICIARY DISTRICT OF SAO PAULO, BRAZIL, FILED JULY 25, 1995.
NORTON, ET AL. V. RJR NABISCO HOLDINGS CORPORATION, ET AL., SUPERIOR COURT,
MADISON COUNTY, INDIANA, FILED MAY 3, 1996.
RICHARDSON, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., CIRCUIT COURT,
BALTIMORE CITY, MARYLAND, FILED MAY 24, 1996.
SCOTT, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., DISTRICT COURT, ORLEANS
PARISH, LOUISIANA, FILED MAY 24, 1996. In November 1998, the intermediate
appellate court
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affirmed the trial court's certification of the medical monitoring class. In
February 1999, the Louisiana Supreme Court declined to hear defendants' appeal
of the class certification ruling.
FROSINA, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., SUPREME COURT, NEW YORK
COUNTY, NEW YORK, FILED JUNE 19, 1996.
REED, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., SUPERIOR COURT, DISTRICT OF
COLUMBIA, FILED JUNE 21, 1996.
BARNES (formerly ARCH), ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED
STATES DISTRICT COURT, EASTERN DISTRICT, PENNSYLVANIA, FILED AUGUST 8, 1996. In
November 1998, the appellate court upheld the trial court's decertification of
the class and dismissal of the case.
LYONS, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT, ALABAMA, FILED AUGUST 8, 1996.
BLAYLOCK (formerly HOLMES and formerly CROZIER) V. THE AMERICAN TOBACCO COMPANY,
ET AL., CIRCUIT COURT, MONTGOMERY COUNTY, ALABAMA, FILED AUGUST 8, 1996. In
March 1999, the court dismissed this case without prejudice.
CHAMBERLAIN, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES
DISTRICT COURT, NORTHERN DISTRICT, OHIO, FILED AUGUST 14, 1996.
THOMPSON, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., UNITED STATES
DISTRICT COURT, MINNESOTA, FILED SEPTEMBER 4, 1996.
PERRY/CHAMPION, ET AL. V. AMERICAN TOBACCO CO., INC., ET AL., CIRCUIT COURT FOR
COFFEE COUNTY, TENNESSEE, AT MANCHESTER, FILED SEPTEMBER 6, 1996.
CONNOR, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., SECOND JUDICIAL DISTRICT
COURT, BERNALILLO COUNTY, NEW MEXICO, FILED OCTOBER 10, 1996.
HANSEN, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT, ARKANSAS, FILED NOVEMBER 4, 1996.
MCCUNE, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., CIRCUIT COURT OF KANAWHA
COUNTY, WEST VIRGINIA, FILED JANUARY 31, 1997.
MUNCY (formerly INGLE and formerly WOODS), ET AL. V. PHILIP MORRIS INCORPORATED,
ET AL., CIRCUIT COURT, MCDOWELL COUNTY, WEST VIRGINIA, FILED FEBRUARY 4, 1997.
EMIG (formerly GREEN), ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED
STATES DISTRICT COURT, KANSAS, FILED FEBRUARY 6, 1997. In December 1998, the
court denied plaintiffs' motion for class certification.
PETERSON, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, HAWAII, FILED FEBRUARY 6, 1997.
WALLS, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, NORTHERN DISTRICT, OKLAHOMA, FILED FEBRUARY 6, 1997.
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SELCER, ET AL. V. R.J. REYNOLDS TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, NEVADA, FILED MARCH 3, 1997.
INSOLIA, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., UNITED STATES DISTRICT
COURT, WESTERN DISTRICT, WISCONSIN, FILED APRIL 21, 1997. In December 1998, the
court denied plaintiffs' motion for class certification.
GEIGER, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., SUPREME COURT, QUEENS
COUNTY, NEW YORK, FILED APRIL 30, 1997.
COLE, ET AL. V. THE TOBACCO INSTITUTE, INC., ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT, TEXAS, TEXARKANA DIVISION, FILED MAY 5, 1997.
COSENTINO, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., SUPERIOR COURT,
MIDDLESEX COUNTY, NEW JERSEY, FILED MAY 21, 1997. In October 1998, the trial
court denied plaintiffs' motion for class certification.
CLAY, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., UNITED STATES
DISTRICT COURT, SOUTHERN DISTRICT, ILLINOIS, BENTON DIVISION, FILED MAY 22,
1997.
ANDERSON, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., UNITED STATES
DISTRICT COURT, EASTERN DISTRICT, TENNESSEE, FILED MAY 23, 1997.
TAYLOR, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., CIRCUIT COURT,
WAYNE COUNTY, MICHIGAN, FILED MAY 23, 1997.
LYONS, ET AL. V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET AL., UNITED STATES
DISTRICT COURT, NORTHERN DISTRICT, GEORGIA, FILED MAY 27, 1997. In December
1998, plaintiffs voluntarily dismissed this case without prejudice.
KIRSTEIN (formerly ENRIGHT), ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET
AL., SUPERIOR COURT, MIDDLESEX COUNTY, NEW JERSEY, FILED MAY 28, 1997. In
October 1998, the court denied plaintiffs' motion for class certification.
TEPPER, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., SUPERIOR COURT, MIDDLESEX
COUNTY, NEW JERSEY, FILED MAY 28, 1997. In October 1998, the court denied
plaintiffs' motion for class certification.
BROWN, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., SUPERIOR COURT, SAN
DIEGO COUNTY, CALIFORNIA, FILED JUNE 10, 1997.
LIPPINCOTT, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., SUPERIOR
COURT, MIDDLESEX COUNTY, NEW JERSEY, FILED JUNE 13, 1997. In October 1998, the
court denied plaintiffs' motion for class certification.
BRAMMER, ET AL. V. R.J. REYNOLDS TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT, IOWA, FILED JUNE 20, 1997.
KNOWLES, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT, LOUISIANA, FILED JUNE 30, 1997. In December 1998,
plaintiffs voluntarily dismissed this case without prejudice.
DALEY, ET AL. V. AMERICAN BRANDS, INC., ET AL., UNITED STATES DISTRICT COURT,
NORTHERN DISTRICT, ILLINOIS, FILED JULY 7, 1997.
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PISCITELLO, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., SUPERIOR COURT,
MIDDLESEX COUNTY, NEW JERSEY, FILED JULY 28, 1997. In October 1998, the court
denied plaintiffs' motion for class certification.
DASILVA, ET AL. V. NIGERIAN TOBACCO COMPANY, ET AL., HIGH COURT OF LAGOS STATE,
NIGERIA, FILED SEPTEMBER 8, 1997.
BUSH, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT, TEXAS, FILED SEPTEMBER 10, 1997.
NWANZE, ET AL. V. PHILIP MORRIS COMPANIES INC., ET AL., UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT, NEW YORK, FILED SEPTEMBER 29, 1997.
BADILLO, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, NEVADA, FILED OCTOBER 8, 1997.
NEWBORN, ET AL. V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET AL., UNITED STATES
DISTRICT COURT, WESTERN DISTRICT, TENNESSEE, FILED OCTOBER 9, 1997.
YOUNG, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., CIVIL DISTRICT COURT,
ORLEANS PARISH, STATE OF LOUISIANA, FILED NOVEMBER 12, 1997.
AKSAMIT, ET AL. V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET AL., UNITED STATES
DISTRICT COURT, SOUTH CAROLINA, FILED NOVEMBER 20, 1997.
DIENNO, ET AL. V. LIGGETT GROUP, INC., ET AL., UNITED STATES DISTRICT COURT,
NEVADA, FILED DECEMBER 22, 1997. In December 1998, this case was consolidated
with the BADILLO case mentioned above.
JACKSON, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., UNITED STATES DISTRICT
COURT, CENTRAL DISTRICT, UTAH, FILED FEBRUARY 13, 1998.
PARSONS, ET AL. V. A C & S, INC., ET AL., CIRCUIT COURT, KANAWHA COUNTY, WEST
VIRGINIA, FILED FEBRUARY 27, 1998.
NATIONAL ASSOCIATION FOR ASSISTANCE TO CONSUMERS AND WORKERS V. SOUZA CRUZ S.A.
AND PHILIP MORRIS BRASIL S.A., THE FIFTH COURT OF BANKRUPTCIES AND
REORGANIZATIONS OF THE CAPITAL DISTRICT OF THE STATE OF RIO DE JANEIRO, BRAZIL,
FILED MARCH 16, 1998.
BASIK (formerly MENDYS), ET AL. V. LORILLARD TOBACCO COMPANY, ET AL., CIRCUIT
COURT OF COOK COUNTY, ILLINOIS, FILED MARCH 17, 1998.
DANIELS, ET AL. V. PHILIP MORRIS COMPANIES INC., ET AL., SUPERIOR COURT, SAN
DIEGO COUNTY, CALIFORNIA, FILED APRIL 2, 1998.
CHRISTENSEN, ET AL. V. PHILIP MORRIS COMPANIES INC., ET AL., UNITED STATES
DISTRICT COURT, NEVADA, FILED APRIL 3, 1998.
AVALLONE, ET AL. V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., NEW JERSEY
SUPERIOR COURT, ATLANTIC COUNTY LAW DIVISION, FILED APRIL 23, 1998.
4
COLLIER, ET AL. V. PHILIP MORRIS INCORPORATED, UNITED STATES DISTRICT COURT,
SOUTHERN DISTRICT OF MISSISSIPPI, FILED MAY 26, 1998. In March 1999, plaintiffs
filed a motion to voluntarily dismiss this case without prejudice.
CLEARY, ET AL. V. PM INC., ET AL., CIRCUIT COURT, COOK COUNTY ILLINOIS, COUNTY
LAW DEPARTMENT, LAW DIVISION, FILED JUNE 3, 1998.
VAUGHAN, ET AL. V. PHILIP MORRIS INC., ET AL., UNITED STATES DISTRICT COURT,
WESTERN DISTRICT OF VIRGINIA, FILED JULY 30, 1998.
CREEKMORE, ET AL. V. BROWN & WILLIAMSON, ET AL., SUPERIOR COURT OF BUCOMBE
COUNTY, NORTH CAROLINA, FILED JULY 31, 1998.
JIMENEZ, ET AL. V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET AL., SECOND
JUDICIAL DISTRICT COURT, COUNTY OF BERNALILLO, NEW MEXICO, FILED AUGUST 20,
1998.
SMOKERS FOR FAIRNESS, LLC ET AL. V. THE STATE OF CALIFORNIA, ET AL., LOS
ANGELES, SUPERIOR COURT, CALIFORNIA, FILED SEPTEMBER 25, 1998. This purported
class action is brought on behalf of all California smokers. It purports to
allege eight causes of action: two against the State of California and other
California public entities, and six against PM Inc. and other tobacco company
defendants. Against the state and the other public entities, the first cause of
action seeks to prohibit the public entities from concluding any settlements
with the tobacco company defendants; the second cause of action seeks a refund
of all tobacco taxes the purported class has paid. Against PM Inc. and the other
tobacco company defendants, plaintiffs allege causes of action for fraud,
violations of the California Consumers Legal Remedies Act, breach of express and
implied warranties, strict liability, and violations of the California Unfair
Competition Law and False Advertising Law. Plaintiffs seek from the tobacco
companies unspecified general damages, special damages, restitution, a permanent
and preliminary injunction restraining defendants from committing the acts and
offenses alleged in the complaint, and attorneys' fees and costs.
SWEENEY, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, WESTERN DISTRICT, PENNSYLVANIA, FILED OCTOBER 15, 1998.
BROWN, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT,
EASTERN DISTRICT OF PENNSYLVANIA, FILED OCTOBER 16, 1998. In this case,
plaintiffs allege that tobacco companies' "discriminatory targeting of menthol
tobacco product sales to Black Americans" violates federal civil rights
statutes.
GATLIN, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, EASTERN DISTRICT OF MISSOURI, FILED DECEMBER 21, 1998.
JONES, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., CIRCUIT COURT, JACKSON
COUNTY, MISSOURI, FILED DECEMBER 22, 1998.
HEALTH CARE COST RECOVERY LITIGATION
The following lists the health care cost recovery actions pending against PM
Inc. and, in some cases, the Company and/or its other subsidiaries and
affiliates as of March 1, 1999, and describes certain developments since October
1, 1998. Exhibit 99.2 hereto sets forth the status of the Master Settlement
Agreement ("MSA")in each of the respective settling jurisdictions.
5
CITY AND COUNTY OF SAN FRANCISCO, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL.,
UNITED STATES DISTRICT COURT, NORTHERN DISTRICT, CALIFORNIA, FILED JUNE 6, 1996.
COUNTY OF LOS ANGELES V. R.J. REYNOLDS TOBACCO COMPANY, ET AL., SUPERIOR COURT,
SAN DIEGO COUNTY, CALIFORNIA, FILED AUGUST 5, 1996. This case was dismissed with
prejudice in December 1998.
PEOPLE OF THE STATE OF CALIFORNIA V. PHILIP MORRIS INCORPORATED, ET AL.,
SUPERIOR COURT, SAN FRANCISCO COUNTY, CALIFORNIA, FILED SEPTEMBER 5, 1996.
CITY OF NEW YORK, ET AL. V. THE TOBACCO INSTITUTE, ET AL., SUPREME COURT, NEW
YORK COUNTY, NEW YORK, FILED OCTOBER 17, 1996. In January 1999, the court ruled
that the pending motions in this case, including motions to dismiss, were "moot"
as this case has been settled as part of the MSA.
COUNTY OF ERIE V. THE TOBACCO INSTITUTE, INC., ET AL., SUPREME COURT, ERIE
COUNTY, NEW YORK, FILED JANUARY 14, 1997. In February 1999, the court stayed
this action until decision of Erie County's appeal of the New York trial court's
approval of the MSA or until further order of the court.
COUNTY OF COOK V. PHILIP MORRIS, INCORPORATED, ET AL., CIRCUIT COURT, COOK
COUNTY, ILLINOIS, FILED APRIL 18, 1997.
STATIONARY ENGINEERS LOCAL 39 HEALTH AND WELFARE TRUST FUND V. PHILIP MORRIS,
INC., ET AL., UNITED STATES DISTRICT COURT, NORTHERN DISTRICT, CALIFORNIA, FILED
APRIL 25, 1997.
IRON WORKERS LOCAL UNION NO. 17 INSURANCE FUND, ET AL. V. PHILIP MORRIS, INC.,
ET AL., UNITED STATES DISTRICT COURT, NORTHERN DISTRICT, OHIO, EASTERN DIVISION,
FILED MAY 20, 1997. In October 1998, the trial court granted plaintiffs' motion
to certify a class consisting of all Ohio labor health and welfare funds and, in
February 1999, the Court of Appeals declined to review the trial court's class
certification. The trial of this case began on February 22, 1999.
NORTHWEST LABORERS-EMPLOYERS HEALTH AND SECURITY TRUST FUND, ET AL. V. PHILIP
MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, WESTERN DISTRICT,
WASHINGTON, FILED MAY 21, 1997. In December 1998, the court denied defendants'
motion for judgment on the pleadings.
UNIVERSITY OF SOUTHERN ALABAMA V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED
STATES DISTRICT COURT, SOUTHERN DISTRICT, ALABAMA, FILED MAY 23, 1997. In March
1999, the Court of Appeals reversed the trial court's dismissal of this case.
CENTRAL LABORERS WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET AL., CIRCUIT
COURT FOR THE THIRD JUDICIAL CIRCUIT, MADISON COUNTY, ILLINOIS, FILED MAY 30,
1997.
MASSACHUSETTS LABORERS HEALTH AND WELFARE FUND V. PHILIP MORRIS, INC., ET AL.,
UNITED STATES DISTRICT COURT, MASSACHUSETTS, FILED JUNE 2, 1997.
THE LOWER BRULE SIOUX TRIBE V. THE AMERICAN TOBACCO COMPANY, ET AL., TRIBAL
COURT, LOWER BRULE SIOUX TRIBE, FILED JUNE 4, 1997.
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HAWAII HEALTH AND WELFARE TRUST FUND FOR OPERATING ENGINEERS V. PHILIP MORRIS,
INC., ET AL., UNITED STATES DISTRICT COURT, HAWAII, FILED JUNE 13, 1997. In
January 1999, the court granted defendants' motion to dismiss based on the
remoteness doctrine.
LABORERS LOCAL 17 HEALTH AND BENEFIT FUND, ET AL. V. PHILIP MORRIS, INC., ET
AL., UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT, NEW YORK, FILED JUNE 19,
1997.
THE MUSCOGEE CREEK NATION, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL.,
DISTRICT COURT, MUSCOGEE CREEK NATION, OKMULGEE DISTRICT, FILED JUNE 20, 1997.
KENTUCKY LABORERS DISTRICT COUNCIL HEALTH AND WELFARE TRUST FUND, ET AL. V. HILL
& KNOWLTON, INC., ET AL., UNITED STATES DISTRICT COURT, WESTERN DISTRICT,
KENTUCKY, LOUISVILLE DIVISION, FILED JUNE 20, 1997.
OREGON LABORERS -- EMPLOYERS HEALTH AND WELFARE TRUST FUND, ET AL. V. PHILIP
MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, OREGON, FILED JUNE 20, 1997.
UNITED FEDERATION OF TEACHERS WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET
AL., UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT, NEW YORK, FILED JUNE 25,
1997.
LABORERS AND OPERATING ENGINEERS UTILITY AGREEMENT HEALTH AND WELFARE TRUST FUND
FOR ARIZONA V. PHILIP MORRIS INCORPORATED, ET AL., UNITED STATES DISTRICT COURT,
ARIZONA, FILED JULY 7, 1997. In February 1999, the court granted defendants'
motion to dismiss for failure to state a claim.
INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 132, HEALTH AND WELFARE FUND
V. PHILIP MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT,
WEST VIRGINIA, HUNTINGTON DIVISION, FILED JULY 10, 1997. In January 1999, the
court granted plaintiffs' motion to drop its class allegations.
RHODE ISLAND LABORERS HEALTH AND WELFARE FUND V. PHILIP MORRIS INCORPORATED, ET
AL., UNITED STATES DISTRICT COURT, RHODE ISLAND, FILED JULY 20, 1997.
EASTERN STATES HEALTH AND WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET AL.,
SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED JULY 28, 1997.
ASBESTOS WORKERS LOCAL 53 HEALTH AND WELFARE FUND, ET AL. V. PHILIP MORRIS,
INC., ET AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, LOUISIANA, FILED
AUGUST 15, 1997.
STEAMFITTERS LOCAL UNION NO. 420 WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET
AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, PENNSYLVANIA, FILED AUGUST
21, 1997.
CONSTRUCTION LABORERS OF GREATER ST. LOUIS WELFARE FUND, ET AL. V. PHILIP
MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, MISSOURI,
FILED SEPTEMBER 2, 1997.
THE ARKANSAS CARPENTERS HEALTH & WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET
AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, ARKANSAS, FILED SEPTEMBER
4, 1997.
WEST VIRGINIA--OHIO VALLEY AREA INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
WELFARE FUND V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT, WEST VIRGINIA, FILED SEPTEMBER 11, 1997.
7
TEAMSTERS UNION NO. 142 HEALTH AND WELFARE TRUST FUND AND SHEET METAL WORKERS
LOCAL UNION NO. 20 WELFARE AND BENEFIT FUND V. PHILIP MORRIS INCORPORATED, ET
AL., CIRCUIT COURT OF ST. JOSEPH COUNTY, INDIANA, FILED SEPTEMBER 12, 1997.
CROW CREEK SIOUX TRIBE V. THE AMERICAN TOBACCO COMPANY, ET AL., TRIBAL COURT,
CROW CREEK SIOUX TRIBE, FILED SEPTEMBER 14, 1997.
PUERTO RICAN ILGWU HEALTH & WELFARE FUND, ET AL. V. PHILIP MORRIS INC., ET AL.,
SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED SEPTEMBER 17, 1997.
NEW JERSEY CARPENTERS' HEALTH FUND, ET AL. V. PHILIP MORRIS, INC., ET AL.,
UNITED STATES DISTRICT COURT, NEW JERSEY, FILED SEPTEMBER 25, 1997.
NEW MEXICO AND WEST TEXAS MULTI-CRAFT HEALTH AND WELFARE TRUST FUND, ET AL. V.
PHILIP MORRIS, INC., ET AL., SECOND JUDICIAL DISTRICT COURT, BERNALILLO COUNTY,
NEW MEXICO, FILED OCTOBER 10, 1997. In December 1998, the court dismissed the
case with prejudice noting that the "remoteness doctrine was the principle
catalyst for this decision."
REPUBLIC OF THE MARSHALL ISLANDS V. THE AMERICAN TOBACCO COMPANY, ET AL., HIGH
COURT, REPUBLIC OF THE MARSHALL ISLANDS, FILED OCTOBER 20, 1997. In December
1998, the court granted a motion to dismiss for lack of personal jurisdiction
with respect to the "holding company" and "unaffiliated" defendants, including
the Company, but denied the motion with respect to the "manufacturer"
defendants, including PM Inc. and Philip Morris Products Inc.
CENTRAL STATES JOINT BOARD V. PHILIP MORRIS, INC., ET AL., UNITED STATES
DISTRICT COURT, NORTHERN DISTRICT, ILLINOIS, FILED OCTOBER 20, 1997. In December
1998, the court granted defendants' motion to dismiss.
INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL 734 V. PHILIP MORRIS, INC., ET
AL., UNITED STATES DISTRICT COURT, NORTHERN DISTRICT, ILLINOIS, FILED OCTOBER
20, 1997. In December 1998, the court granted defendants' motion to dismiss.
TEXAS CARPENTERS HEALTH BENEFIT FUND, ET AL. V. PHILIP MORRIS, INC., ET AL.,
UNITED STATES DISTRICT COURT, EASTERN DISTRICT, TEXAS, BEAUMONT DIVISION, FILED
OCTOBER 31, 1997.
UNITED FOOD AND COMMERCIAL WORKERS UNIONS AND EMPLOYERS HEALTH AND WELFARE FUND
V. PHILIP MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, NORTHERN DISTRICT,
ALABAMA, FILED NOVEMBER 13, 1997.
B.A.C. LOCAL 32 INSURANCE TRUST FUND, ET AL. V. PHILIP MORRIS, INCORPORATED, ET
AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, MICHIGAN, FILED NOVEMBER
14, 1997.
IBEW LOCAL 25 HEALTH AND BENEFIT FUND V. PHILIP MORRIS, INC., ET AL., SUPREME
COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED NOVEMBER 25, 1997.
IBEW LOCAL 363 WELFARE FUND V. PHILIP MORRIS, INC., ET AL., SUPREME COURT, STATE
OF NEW YORK, COUNTY OF NEW YORK, FILED NOVEMBER 25, 1997.
LOCAL 138, 138A AND 138B INTERNATIONAL UNION OF OPERATING ENGINEERS WELFARE FUND
V. PHILIP MORRIS, INC., ET AL., SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW
YORK, FILED NOVEMBER 25, 1997.
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LOCAL 840, INTERNATIONAL BROTHERHOOD OF TEAMSTERS HEALTH AND INSURANCE FUND V.
PHILIP MORRIS, INC., ET AL., SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW
YORK, FILED NOVEMBER 25, 1997.
LONG ISLAND REGIONAL COUNCIL OF CARPENTERS WELFARE FUND V. PHILIP MORRIS, INC.,
SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED NOVEMBER 25, 1997.
DAY CARE COUNCIL - LOCAL 205 D.C. 1707 WELFARE FUND V. PHILIP MORRIS, INC., ET
AL., SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED DECEMBER 8,
1997.
LOCAL 1199 HOME CARE INDUSTRY BENEFIT FUND V. PHILIP MORRIS, INC., ET AL.,
SUPREME COURT, STATE OF NEW YORK, COUNTY OF NEW YORK, FILED DECEMBER 8, 1997.
LOCAL 1199 NATIONAL BENEFIT FUND FOR HEALTH AND HUMAN SERVICES EMPLOYEES V.
PHILIP MORRIS, INC., ET AL., SUPREME COURT, NEW YORK COUNTY, NEW YORK, FILED
DECEMBER 8, 1997.
MASON, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, NORTHERN DISTRICT, TEXAS, FILED DECEMBER 23, 1997. In January 1999, the
court denied defendants' motion to dismiss for failure to state a claim.
OPERATING ENGINEERS LOCAL 324 HEALTH CARE FUND, ET AL. V. PHILIP MORRIS, INC.,
ET AL., CIRCUIT COURT, WAYNE COUNTY, MICHIGAN, FILED DECEMBER 30, 1997. In
February 1999, the court granted defendants' motion to dismiss.
CARPENTERS & JOINERS WELFARE FUND, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL.,
UNITED STATES DISTRICT COURT, MINNESOTA, FILED DECEMBER 31, 1997.
STEAMFITTERS LOCAL UNION NO. 614 HEALTH & WELFARE FUND, ET AL. V. PHILIP MORRIS,
INC., ET AL., CIRCUIT COURT, THIRTEENTH JUDICIAL DISTRICT, TENNESSEE, FILED
JANUARY 7, 1998. In January 1999, the court granted defendants' motion to
dismiss as to plaintiffs' antitrust claim, but otherwise denied the motion.
WOODS, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL., UNITED STATES DISTRICT
COURT, MIDDLE DISTRICT, NORTH CAROLINA, FILED FEBRUARY 13, 1998.
NATIONAL ASBESTOS WORKERS MEDICAL FUND, ET AL. V. PHILIP MORRIS INCORPORATED, ET
AL., UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK, FILED
FEBRUARY 27, 1998. In October 1998, the court denied defendants' motion to
dismiss.
MILWAUKEE CARPENTERS, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., CIRCUIT
COURT, MILWAUKEE COUNTY, WISCONSIN, FILED MARCH 4, 1998.
GROUP HEALTH PLAN, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED STATES DISTRICT
COURT, MINNESOTA, FILED MARCH 11, 1998.
SERVICE EMPLOYEES INTERNATIONAL UNION HEALTH & WELFARE FUND, ET AL. V. PHILIP
MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, DISTRICT OF COLUMBIA, FILED
MARCH 19, 1998.
GREAT LAKES SALES & MARKETING, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL.
(FORMERLY WILLIAMS & DRAKE COMPANY, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET
AL.), UNITED STATES DISTRICT COURT, WESTERN DISTRICT, PENNSYLVANIA, FILED MARCH
23, 1998. In December 1998, the court dismissed this case with prejudice.
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CONWED CORPORATION AND LEUCADIA, INC. V. RJ REYNOLDS TOBACCO COMPANY, ET AL.,
UNITED STATES DISTRICT COURT, MINNESOTA, FILED APRIL 9, 1998.
IN RE TOBACCO CASES II, SUPERIOR COURT FOR THE STATE OF CALIFORNIA, JUDICIAL
COUNCIL COORDINATION PROCEEDING NO. 4042. The court in this case has
consolidated 30 previously filed cases, including 25 health care cost recovery
actions filed by unions.
ARKANSAS BLUE CROSS AND BLUE SHIELD, ET AL. V. PHILIP MORRIS INCORPORATED, ET
AL., UNITED STATES DISTRICT COURT, NORTHERN DISTRICT, ILLINOIS, FILED APRIL 29,
1998.
BLUE CROSS AND BLUE SHIELD OF NEW JERSEY, INC., ET AL. V. PHILIP MORRIS,
INCORPORATED, ET AL., UNITED STATES DISTRICT COURT, EASTERN DISTRICT, NEW YORK,
FILED APRIL 29, 1998. In February 1999, the court denied certain defendants'
motions to dismiss for failure to state a claim and failure to join necessary
parties.
REGENCE BLUESHIELD, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED STATES
DISTRICT COURT, WESTERN DISTRICT, WASHINGTON, FILED APRIL 29, 1998. In January
1999, the court granted certain defendants' motion to dismiss for failure to
state a claim, holding that plaintiffs do not have standing to bring the action
because the alleged injuries are not distinct and separate from the alleged
injuries to the health care plan members and are, therefore, too remote.
SISSETON-WAHPETON SIOUX TRIBE V. PHILIP MORRIS INCORPORATED, ET AL., TRIBAL
COURT OF THE SISSETON-WAHPETON SIOUX TRIBE, FILED MAY 8, 1998.
STANDING ROCK SIOUX TRIBE V. PHILIP MORRIS INCORPORATED, ET AL., TRIBAL COURT OF
THE STANDING ROCK SIOUX INDIAN RESERVATION, FILED MAY 8, 1998. In March 1999,
the court denied defendants' motion to dismiss.
THE REPUBLIC OF GUATEMALA V. THE TOBACCO INSTITUTE, INC., ET AL., UNITED STATES
DISTRICT COURT, DISTRICT OF COLUMBIA, FILED MAY 11, 1998.
UTAH LABORERS' HEALTH AND WELFARE FUND, ET AL. V. PHILIP MORRIS INCORPORATED, ET
AL., UNITED STATES DISTRICT COURT, UTAH, FILED JUNE 13, 1998.
S.E.I.U. LOCAL 74 WELFARE FUND, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED
STATES DISTRICT COURT, DISTRICT OF COLUMBIA, FILED JUNE 22, 1998.
MICHAEL H. HOLLAND, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED STATES
DISTRICT COURT, DISTRICT OF COLUMBIA, FILED JULY 9, 1998.
CONTRACTORS, LABORERS, TEAMSTERS & ENGINEERS HEALTH & WELFARE PLAN V. PHILIP
MORRIS, INC., ET AL., UNITED STATES DISTRICT COURT, NEBRASKA, FILED AUGUST 11,
1998. In February 1999, the court granted defendants' motion to dismiss for
failure to state a claim.
THE REPUBLIC OF PANAMA V. THE AMERICAN TOBACCO COMPANY, INC., ET AL., UNITED
STATES DISTRICT COURT, EASTERN DISTRICT, LOUISIANA, FILED SEPTEMBER 11, 1998.
KUPAT HOLIM CLALIT V. PHILIP MORRIS, INC., ET AL., JERUSALEM DISTRICT COURT,
ISRAEL, FILED SEPTEMBER 28, 1998.
CITY OF ST. LOUIS V. AMERICAN TOBACCO, ET AL., CIRCUIT COURT OF THE CITY OF ST.
LOUIS, MISSOURI, FILED NOVEMBER 23, 1998.
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COUNTY OF ST. LOUIS V. AMERICAN TOBACCO, ET AL., CIRCUIT COURT OF ST. LOUIS,
MISSOURI, FILED DECEMBER 3, 1998.
ALLEGHENY GENERAL HOSPITAL, ET AL. V. PHILIP MORRIS, INC., ET AL., UNITED STATES
DISTRICT COURT, WESTERN DISTRICT, PENNSYLVANIA, FILED DECEMBER 10, 1998.
THE REPUBLIC OF NICARAGUA V. LIGGETT GROUP, INC., ET AL., UNITED STATES DISTRICT
COURT, PUERTO RICO, FILED DECEMBER 10, 1998.
THE REPUBLIC OF BOLIVIA V. PHILIP MORRIS COMPANIES INC., ET AL., UNITED STATES
DISTRICT COURT, DISTRICT OF COLUMBIA, FILED JANUARY 20, 1999. In March 1999, the
United States District Court for the Southern District of Texas transferred this
case to the United States District Court for the District of Columbia.
THE REPUBLIC OF VENEZUELA V. PHILIP MORRIS COMPANIES INC., ET AL., CIRCUIT COURT
OF THE ELEVENTH JUDICIAL CIRCUIT, MIAMI-DADE COUNTY, FLORIDA, FILED JANUARY 27,
1999.
THE KINGDOM OF THAILAND V. TOBACCO INSTITUTE, ET AL., UNITED STATES DISTRICT
COURT, SOUTHERN DISTRICT, TEXAS, FILED JANUARY 29, 1999.
CERTAIN OTHER ACTIONS
The following lists certain other actions pending against the Company and/or
various subsidiaries and others. The "National Cheese Exchange" cases
referenced below are described in Note 16 to the Company's consolidated
financial statements, and the other categories of cases are described in
Item 3 of this Annual Report on Form 10-K.
NATIONAL CHEESE EXCHANGE CASES
o CONSOLIDATED ACTION
o SERVAIS, ET AL. V. KRAFT FOODS, INC. AND THE NATIONAL CHEESE
EXCHANGE, INC., CIRCUIT COURT OF DANE COUNTY, WISCONSIN, FILED
MAY 5, 1997.
o DODSON, ET AL. V. KRAFT FOODS, INC., ET AL., CIRCUIT COURT OF
DANE COUNTY, WISCONSIN, FILED JULY 1, 1997.
o NOLL, ET AL. V. KRAFT FOODS, INC., ET AL., CIRCUIT COURT OF
DANE COUNTY, WISCONSIN, FILED JULY 11, 1997.
o VINCENT, ET AL. V. KRAFT FOODS, INC., CIRCUIT COURT OF COOK COUNTY,
ILLINOIS, FILED OCTOBER 27, 1997. In December 1998, the court granted
defendant's motion to dismiss.
o KNEVELBOARD DAIRIES, ET AL. V. KRAFT FOODS, INC., ET AL., UNITED STATES
DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, FILED APRIL 14,
1998. In December 1998, the court granted defendants' motion to
dismiss.
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ASBESTOS CONTRIBUTION CASES
o RAYMARK INDUSTRIES, INC. V. R. J. REYNOLDS TOBACCO COMPANY, ET AL.,
CIRCUIT COURT, FOURTH JUDICIAL CIRCUIT, DUVAL COUNTY, FLORIDA, FILED
SEPTEMBER 15, 1997.
o RAYMARK INDUSTRIES, INC. V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET
AL., UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA,
ATLANTA DIVISION, FILED SEPTEMBER 15, 1997.
o FIBREBOARD CORPORATION AND OWENS CORNING V. THE AMERICAN TOBACCO
COMPANY, ET AL., SUPERIOR COURT OF ALAMEDA COUNTY, CALIFORNIA, FILED
DECEMBER 11, 1997.
o KEENE CREDITORS TRUST V. BROWN & WILLIAMSON TOBACCO CORPORATION, ET
AL., SUPREME COURT OF NEW YORK COUNTY, NEW YORK, FILED DECEMBER 19,
1997.
o ROBERT A. FALISE, ET AL. V. THE AMERICAN TOBACCO COMPANY, ET AL.,
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK,
FILED DECEMBER 31, 1997.
o H. K. PORTER COMPANY, INC. V. THE AMERICAN TOBACCO COMPANY, ET AL.,
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK,
FILED DECEMBER 31, 1997.
o RAYMARK INDUSTRIES, INC. V. R. J. REYNOLDS TOBACCO COMPANY, ET. AL.,
CIRCUIT COURT, FOURTH JUDICIAL CIRCUIT, DUVAL COUNTY, FLORIDA, FILED
DECEMBER 31, 1997.
o RAYMARK INDUSTRIES, INC. V. THE AMERICAN TOBACCO COMPANY, ET AL.,
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK,
FILED JANUARY 30, 1998.
o EZELL THOMAS (AS TO ALL DEFENDANTS) AND OWENS CORNING (AS TO ALL
TOBACCO DEFENDANTS ONLY) V. R. J. REYNOLDS TOBACCO COMPANY, ET AL.,
CIRCUIT COURT OF JEFFERSON COUNTY, MISSISSIPPI, FILED AUGUST 30, 1998.
o THE SEIBELS BRUCE GROUP, INC. V. R. J. REYNOLDS TOBACCO COMPANY, ET
AL., UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
CALIFORNIA, FILED DECEMBER 30, 1998.
PROPOSITION 65 CASES
o THE PEOPLE OF THE STATE OF CALIFORNIA, ET AL. V. PHILIP MORRIS
INCORPORATED, ET AL., SUPERIOR COURT OF LOS ANGELES COUNTY, CALIFORNIA,
FILED JULY 14, 1998.
o THE PEOPLE OF THE STATE OF CALIFORNIA, ET AL. V. BROWN & WILLIAMSON
TOBACCO CORPORATION, ET AL., SUPERIOR COURT OF SAN FRANCISCO COUNTY,
CALIFORNIA, FILED JULY 28, 1998. In March 1998, the court coordinated
this case with IN RE TOBACCO CASES II discussed above.
MARLBORO LIGHT/ULTRA LIGHT CASES
o HOGUE, ET AL. V. PHILIP MORRIS COMPANIES, INC. AND PHILIP MORRIS, INC.,
UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, FILED
JUNE 30, 1998.
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o CUMMIS, ET AL. V. PHILIP MORRIS COMPANIES, INC. AND PHILIP MORRIS,
INC., SUPERIOR COURT, MIDDLESEX COUNTY, NEW JERSEY, FILED JULY 9, 1998.
o MCNAMARA, ET AL. V. PHILIP MORRIS COMPANIES, INC. AND PHILIP MORRIS,
INC., UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF
PENNSYLVANIA, FILED JULY 16, 1998.
o ASPINALL, ET AL. V. PHILIP MORRIS COMPANIES, INC. AND PHILIP MORRIS
INCORPORATED, UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
MASSACHUSETTS, FILED NOVEMBER 24, 1998.
o RUSSELL, ET AL. V. PHILIP MORRIS INCORPORATED AND PHILIP MORRIS
COMPANIES, INC., UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT
OF TENNESSEE, FILED NOVEMBER 24, 1998.
o MCCLURE, ET AL. V. PHILIP MORRIS COMPANIES INC. AND PHILIP MORRIS
INCORPORATED, CIRCUIT COURT OF DAVIDSON COUNTY, TENNESSEE, FILED
JANUARY 19, 1999.
MSA-RELATED CASES
o HISE, ET AL. V. PHILIP MORRIS INCORPORATED, ET AL., UNITED DISTRICT
COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA, FILED DECEMBER 15, 1998.
o FORCES ACTION PROJECT, LLC, ET AL., V. THE STATE OF CALIFORNIA, ET.
AL., UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
CALIFORNIA, FILED JANUARY 23, 1999.
o FLOYD V. STATE OF WISCONSIN, ET AL., CIRCUIT COURT OF MILWAUKEE COUNTY,
WISCONSIN, FILED FEBRUARY 10, 1999.
RETAIL LEADERS CASE
o R.J. REYNOLDS TOBACCO COMPANY V. PHILIP MORRIS INCORPORATED, UNITED
STATES DISTRICT COURT, MIDDLE DISTRICT OF NORTH CAROLINA, FILED
MARCH 12, 1999.
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