Summary
finding that “[e]ach cigarette manufacturing company gains a small amount (less than 10%) of smokers through ‘switching’ or changing brands. Only about 9% of adult smokers switch among [the major tobacco manufacturer's] brands.”
Summary of this case from Discount Tobacco City & Lottery, Inc. v. United StatesOpinion
Civil Action No. 99-2496 (GK).
August 17, 2006. CONTINUE TO NEXT DOCUMENT
Sharon Y. Eubanks, Director, Tobacco Litigation Team, Stephen D. Brody, Deputy Director, Tobacco Litigation Team, Reene Brooker, Assistant Director, Tobacco Litigation Team, Bruce G. Ohr, Chief, Organized Crime and Racketeering Section, Criminal Division, Carolyn Clark, Michelle Gluck, Russell B. Kinner, Senior Trial Counsel, Tobacco Litigation Team, Meredith L. Burrell, Allison Cendali, Daniel K. Crane-Hirsch, Elizabeth C. Crocker, James D. Gette, Andrew N. Goldfarb Michelle S. Greif, Carolyn I. Hahn Shannon T. Kelley, Patrick M. Klein, David S. Klontz, Noelle M. Kurtin, Jason Laeser, Siobhan Madison, Brian J. McCabe, Linda M. McMahon, Mary Jo Moltzen, Stasia M. Mosesso, James T. Nelson, Joel D. Schwartz, Gregg M. Schwind, Don G. Scroggin, Kenneth E. Sealls, Andrew A. Steinberg, Ina Strichartz, Armelle Van Dorp, Robert P. Williams, Trial Attorneys, Tobacco Litigation Team, United States Department of Justice, Washington, DC, for United States of America.
FINAL OPINION CONTINUE TO NEXT DOCUMENT
I. INTRODUCTION
A. Overview
On September 22, 1999, the United States brought this massive lawsuit against nine cigarette manufacturers of cigarettes and two tobacco-related trade organizations. The Government alleged that Defendants have violated, and continue to violate, the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. §§ 1961- 1968, by engaging in a lengthy, unlawful conspiracy to deceive the American public about the health effects of smoking and environmental tobacco smoke, the addictiveness of nicotine, the health benefits from low tar, "light" cigarettes, and their manipulation of the design and composition of cigarettes in order to sustain nicotine addiction. As Justice O'Connor noted in Food and Drug Administration, et al. v. Brown Williamson Tobacco Corporation, et al., 529 U.S. 120, 125, 120 S.Ct. 1291, 146 L.Ed.2d 121 (2000), "[t]his case involves one of the most troubling public health problems facing our Nation today: the thousands of premature deaths that occur each year because of tobacco use."
In particular, the Government has argued that, for approximately fifty years, the Defendants have falsely and fraudulently denied: (1) that smoking causes lung cancer and emphysema (also known as chronic obstructive pulmonary disease ("COPD")), as well as many other types of cancer; (2) that environmental tobacco smoke causes lung cancer and endangers the respiratory and auditory systems of children; (3) that nicotine is a highly addictive drug which they manipulated in order to sustain addiction; (4) that they marketed and promoted low tar/light cigarettes as less harmful when in fact they were not; (5) that they intentionally marketed to young people under the age of twenty-one and denied doing so; and (6) that they concealed evidence, destroyed documents, and abused the attorney-client privilege to prevent the public from knowing about the dangers of smoking and to protect the industry from adverse litigation results.
The following voluminous Findings of Fact demonstrate that there is overwhelming evidence to support most of the Government's allegations. As the Conclusions of Law explain in great detail, the Government has established that Defendants (1) have conspired together to violate the substantive provisions of RICO, pursuant to 18 U.S.C. § 1962(d), and (2) have in fact violated those provisions of the statute, pursuant to 18 U.S.C. § 1962(c). Accordingly, the Court is entering a Final Judgment and Remedial Order which seeks to prevent and restrain any such violations of RICO in the future.
In particular, the Court is enjoining Defendants from further use of deceptive brand descriptors which implicitly or explicitly convey to the smoker and potential smoker that they are less hazardous to health than full flavor cigarettes, including the popular descriptors "low tar," "light," "ultra light," "mild," and "natural." The Court is also ordering Defendants to issue corrective statements in major newspapers, on the three leading television networks, on cigarette "onserts," and in retail displays, regarding (1) the adverse health effects of smoking; (2) the addictiveness of smoking and nicotine; (3) the lack of any significant health benefit from smoking "low tar," "light," "ultra light," "mild," and "natural" cigarettes; (4) Defendants' manipulation of cigarette design and composition to ensure optimum nicotine delivery; and (5) the adverse health effects of exposure to secondhand smoke.
Finally, the Court is ordering Defendants to disclose their disaggregated marketing data to the Government in the same form and on the same schedule which they now follow in disclosing this material to the Federal Trade Commission. All such data shall be deemed "confidential" and "highly sensitive trade secret information" subject to the protective Orders which have long been in place in this litigation.
Unfortunately, a number of significant remedies proposed by the Government could not be considered by the Court because of a ruling by the Court of Appeals in United States v. Philip Morris, USA, Inc., et al., 396 F.3d 1196 (D.C. Cir. 2005). In that opinion, the Court held that, because the RICO statute allows only forward-looking remedies to prevent and restrain violations of the Act, and does not allow backward-looking remedies, disgorgement (i.e., forfeiture of ill-gotten gains from past conduct) is not a permissible remedy.
Applying this same legal standard, as it is bound to do, this Court was also precluded from considering other remedies proposed by the Government, such as a comprehensive smoker cessation program to help those addicted to nicotine fight their habit, a counter marketing program run by an independent entity to combat Defendants' seductive appeals to the youth market; and a schedule of monetary penalties for failing to meet pre-set goals for reducing the incidence of youth smoking.
The seven-year history of this extraordinarily complex case involved the exchange of millions of documents, the entry of more than 1,000 Orders, and a trial which lasted approximately nine months with 84 witnesses testifying in open court. Those statistics, and the mountains of paper and millions of dollars of billable lawyer hours they reflect, should not, however, obscure what this case is really about. It is about an industry, and in particular these Defendants, that survives, and profits, from selling a highly addictive product which causes diseases that lead to a staggering number of deaths per year, an immeasurable amount of human suffering and economic loss, and a profound burden on our national health care system. Defendants have known many of these facts for at least 50 years or more. Despite that knowledge, they have consistently, repeatedly, and with enormous skill and sophistication, denied these facts to the public, to the Government, and to the public health community. Moreover, in order to sustain the economic viability of their companies, Defendants have denied that they marketed and advertised their products to children under the age of eighteen and to young people between the ages of eighteen and twenty-one in order to ensure an adequate supply of "replacement smokers," as older ones fall by the wayside through death, illness, or cessation of smoking. In short, Defendants have marketed and sold their lethal product with zeal, with deception, with a single-minded focus on their financial success, and without regard for the human tragedy or social costs that success exacted.
Finally, a word must be said about the role of lawyers in this fifty-year history of deceiving smokers, potential smokers, and the American public about the hazards of smoking and second hand smoke, and the addictiveness of nicotine. At every stage, lawyers played an absolutely central role in the creation and perpetuation of the Enterprise and the implementation of its fraudulent schemes. They devised and coordinated both national and international strategy; they directed scientists as to what research they should and should not undertake; they vetted scientific research papers and reports as well as public relations materials to ensure that the interests of the Enterprise would be protected; they identified "friendly" scientific witnesses, subsidized them with grants from the Center for Tobacco Research and the Center for Indoor Air Research, paid them enormous fees, and often hid the relationship between those witnesses and the industry; and they devised and carried out document destruction policies and took shelter behind baseless assertions of the attorney client privilege.
It would appear this situation continues even to the present. For example, in this very litigation, a former long-time career government lawyer was so intent on representing a company aligned with the Defendants that he grossly misrepresented in his pleadings and declaration to the Court the degree and substance of his earlier participation as government counsel in related litigation involving the Food and Drug Administration. As a result, he was disqualified from representing Defendant-Intervenor BATAS. See Order #915.
What a sad and disquieting chapter in the history of an honorable and often courageous profession.
B. Preliminary Guidance for the Reader
Courts must decide every case that walks in the courthouse door, even when it presents the kind of jurisprudential, public policy, evidentiary, and case management problems inherent in this litigation. From the day this lawsuit was filed, it has garnered much media attention. Recognizing this, the Court hopes to assist the intrepid reader with her task by explaining certain principles and procedures that it has followed.
First and foremost, the Court has decided that, as fact finder, its obligation is to present to the appellate courts, the parties, and the public all the relevant facts which have been proven by a preponderance of this massive body of evidence consisting of testimony (including written direct examination, in-court cross examination, and re-direct examination of witnesses in this trial, as well as deposition and trial testimony of witnesses in related cases), and thousands of exhibits. By virtue of this procedure, the appellate courts will have before them all the factual determinations they need to decide the numerous legal issues which will unquestionably be raised.
Certain consequences flow from the decision to present the most complete factual picture possible. Even though this Opinion is unusually long and detailed, on occasion, there are very few facts presented on important issues and questions leap off the page to the reader. In those instances, it should be understood that the parties presented no further evidence and the Court has stated whatever Findings can be appropriately made on whatever evidence does exist; the record must remain bare as to the unanswered questions and the gaps in the evidence. On other occasions, some individual factual findings may appear unclear or inconsistent with other factual findings. In those instances, the Conclusion to that Section will contain the Court's final Findings, and its reasons for reaching them.
Second, in an effort to make the substance of the Opinion as accessible as possible, almost every Section of the Opinion in both the Findings of Fact and the Conclusions of Law contains an Introduction that provides an overview of the subject matter to be covered and a Conclusion that summarizes what has been found in that Section; the extensive detailed Findings between the Introduction and the Conclusion provide the factual "meat" between the two. In a few instances, Sections are so brief or so self-evident that no Introduction or Conclusion was necessary. Finally, Appendix I contains a Glossary of frequently used terms and concepts; Appendix II contains the relevant Surgeon Generals' Reports and their major findings; and Appendix III contains all the Racketeering Acts charged by the Government.
Third, every effort has been made to make each Section self-contained so that it is complete and understandable in and of itself. Thus, a reader who is interested in only a particular topic, such as youth marketing, can pick up that Section, and obtain the information he needs without having to read the entire Findings of Fact. However, it has been virtually impossible to totally segregate the Findings presented in each Section. At times, the historical data, the scientific data, and the relevant documentary materials overlap subject matter areas and therefore must be repeated in order to ensure that a Section can be read and understood by itself. By the same token, many individuals are identified numerous times in the text in an effort to make it easier for the reader to follow the narrative rather than having to search through many pages to re-familiarize himself with a person's position within either a Government agency or one of the Defendant corporations.
Fourth, specific record citations have been given whenever possible. Many times an individual Finding of Fact is either a direct quote from a witness's written or oral testimony or is taken directly from a proposed finding submitted by one of the parties and supported by the record and proved by at least a preponderance of the evidence. Vast amounts of testimony were given — by eminent and respected scientists, government officials and corporate executives. Only the portions of their testimony specifically cited in the Opinion were affirmatively credited and relied on by the Court. The Court has made it very clear when specific evidence referred to is being rejected or discredited.
Fifth, parties should understand that every Exhibit and Prior Testimony cited in the Findings of Fact is deemed admitted into evidence. A formal Order, accompanying this Opinion, will be entered listing those hundreds (perhaps thousands) of Exhibit numbers and Prior Testimonies, overruling any objections made thereto.
Sixth, several observations need be made about witness bias and credibility. For the most part, each individual Chapter in the Findings of Fact explains why certain facts were found, why certain witnesses were credited, and why the testimony of certain witnesses was either discredited as just plain not believable or, in most instances, outweighed by other more convincing and credible evidence.
Most of the witnesses whose testimony was most vehemently attacked by the Defendants (such as Dr. David R. Kessler, Dr. Michael C. Fiore, Dr. Jeffrey Wigand, and Dr. Cheryl Healton) were only relied upon for undisputed or relatively insignificant background facts (as with Dr. Kessler and Dr. Wigand), or testified about remedies which this Court could not consider on the merits under the Court of Appeals decision discussed above (as in the case of Dr. Fiore and Dr. Healton).
As the Court has noted for the record on numerous occasions, Dr. Kessler is not related in any way.
Much of the Defendants' criticisms of Government witnesses focused on the fact that these witnesses had been long-time, devoted members of "the public health community." To suggest that they were presenting inaccurate, untruthful, or unreliable testimony because they had spent their professional lives trying to improve the public health of this country is patently absurd. It is equivalent to arguing that all the Defendants' witnesses were biased, inaccurate, untruthful, and unreliable because the great majority of them had earned enormous amounts of money working and/or consulting for Defendants and other large corporations, and therefore were so devoted to the cause of corporate America that nothing they testified to, even though presented under oath in a court of law, should be believed. Such simplistic attacks on the credibility of the sophisticated and knowledgeable witnesses who testified in this case are foolish.
All of this is not to deny that there were significant differences in the overall qualifications of the Government's witnesses and the Defendants' witnesses. There were. The Government's witnesses, viewed as a whole, were far more experienced, credentialed, and active in the area of smoking and health, whatever their particular area of specialty, than were the Defendants'. Many of the Government experts had participated extensively, over many years, in the long and drawn-out process of ascertaining the consensus of scientific opinions embodied in each Surgeon General's Report. Virtually every one had taught at a well-regarded academic institution and written numerous peer-reviewed articles in their particular area of specialty. Many of the Government witnesses continued "hands on," clinical work in their fields despite heavy commitments for research, writing, teaching, and lecturing to their peers.
The Defendants' witnesses were obviously well educated in their areas of specialty. Indeed, as was mentioned on many occasions, Defendants even presented the testimony of an impressive Nobel Prize winner. However, rarely did these witnesses have the depth and breadth of experience of the Government witnesses. Many had worked only in large corporations, and many for only one or two such employers. Many — although not all — had written relatively few peer-reviewed articles. Many of the highest paid experts of Defendants, while well credentialed in their particular fields, such as economics, presented relatively narrow testimony tailored to the particular problem or issue they were retained to opine on for purposes of this litigation. A few of Defendants' experts had done virtually no individual research and written virtually no peer-reviewed articles, and a few were unfamiliar with the relevant facts and/or the major scientific literature on the issue about which they testified.
While the testimony of each person — expert or fact witness — was evaluated on its own merits, there can be no denying that, as a group, the Government's witnesses were far more knowledgeable, experienced, and active in their respective fields.
Finally, despite the length and detail of the Findings of Fact, the evidentiary picture must be viewed in its totality in order to fully appreciate how massive the case is against the Defendants, how irresponsible their actions have been, and how heedless they have been of the public welfare and the suffering caused by the cigarettes they sell.
One cannot help wondering whether this litigation was the best vehicle for attempting to hold Defendants accountable for their indifference to the health of American citizens. In a democracy, it is the body elected by the people, namely Congress, that should step up to the plate and address national issues with such enormous economic, public health, commercial, and social ramifications, rather than the courts which are limited to deciding only the particular case presented to them in litigation. However, this will certainly not be the first, nor the last, time that litigants seek to use the courts and existing legislation to address broad-scale economic and social problems which might be far better and more appropriately grappled with by our elected representatives.
II. PROCEDURAL HISTORY
Plaintiff, the United States of America ("the Government") brought this suit in 1999 against eleven tobacco-related entities ("Defendants") to recover health care expenditures the Government has paid or will pay to treat tobacco-related illnesses allegedly caused by Defendants' unlawful conduct. The Government also asked this Court to enjoin Defendants from engaging in fraudulent and other unlawful conduct and to order Defendants to disgorge the proceeds of their past unlawful activity.
The eleven Defendants were: Philip Morris, Inc., now Philip Morris USA, Inc. ("Philip Morris"), R.J. Reynolds Tobacco Co., now Reynolds American ("R.J. Reynolds"), Brown Williamson Tobacco Co., now part of Reynolds American ("Brown Williamson"), Lorillard Tobacco Company ("Lorillard"), The Liggett Group, Inc. ("Liggett"), American Tobacco Co., merged with Brown Williamson which is now part of Reynolds American ("American Tobacco"), Philip Morris Cos., now Altria ("Altria"), B.A.T. Industries p.l.c. ("BAT Ind."), now part of BATCo, British American Tobacco (Investments) Ltd. ("BATCo"), The Council for Tobacco Research — U.S.A., Inc. ("CTR"), and The Tobacco Institute, Inc. ("TI"). The latter two entities do not manufacture or sell tobacco products, but are alleged to be co-conspirators in Defendants' tortious activities. BAT Ind. has been dismissed for lack of personal jurisdiction. All Defendants but Liggett joined together in common defense (the "Joint Defendants"). In 2003, the Court granted the Motion of British American Tobacco Australian Services, Ltd. ("BATAS") to intervene for the limited purpose of asserting and protecting its interests in litigation documents. Order #449.
In its original Complaint, the Government made four claims against Defendants under three federal statutes. The first statute, the Medical Care Recovery Act ("MCRA"), 42 U.S.C. §§ 2651- 2653, provides the Government with a cause of action to recover certain specified health care costs it pays to treat individuals injured by a third-party's tortious conduct (Count 1). The second statute is a series of amendments referred to as the Medicare Secondary Payer provisions ("MSP"), 42 U.S.C. § 1395y, which provides the Government with a cause of action to recover Medicare expenditures when a third-party caused an injury requiring treatment and a "primary payer" was obligated to pay for the treatment (Count 2). The third statute is the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. §§ 1961- 1968 (Counts 3 and 4), which provides private parties with a cause of action to recover treble damages due to injuries they received from a defendant's unlawful racketeering activity and the government with a cause of action to seek other equitable remedies to prevent future unlawful acts. Joint Defendants moved to dismiss the case on all counts. On September 28, 2000, the Motion was granted in part and denied in part, and Counts 1 and 2 were dismissed. United States v. Philip Morris, Inc., 116 F.Supp.2d 131 (D.D.C. 2000).
Continuing its case on Counts 3 and 4, the Government sought injunctive relief and $289 billion in disgorgement of Defendants' ill-gotten gains for what it alleges to be an unlawful conspiracy to deceive the American public. The Government's Amended Complaint describes a four-decade long conspiracy, dating back to at least 1953, to intentionally and willfully deceive and mislead the American public about, inter alia, the harmful nature of tobacco products, the addictive nature of nicotine, and harmfulness of low tar cigarettes. Amended Complaint ("Am. Compl.") at ¶ 3. According to the Government, the underlying strategy Defendants adopted was to deny that smoking caused disease and to consistently maintain that whether smoking caused any kind of disease was still an "open question" for which no scientific consensus existed. Am. Compl. at ¶ 34. In furtherance of that strategy, Defendants allegedly issued deceptive press releases, published false and misleading articles, destroyed and concealed documents which indicated that there was in fact a correlation between smoking and disease, and aggressively targeted children as potential new smokers. Am. Compl. at ¶ 36.
See United States' Preliminary Proposed Findings of Fact at 14.
These allegations have been further described in U.S. v. Philip Morris Inc., 116 F.Supp.2d at 136-38.
The parties engaged in intensive discovery for more than two years, with the assistance of Special Master Richard Levie overseeing disputes and issuing 172 Reports and Recommendations, the majority of which were appealed to this Court. During discovery, the parties exchanged over 4,000 requests for production of documents. Defendant alone made available to the Government over 26 million pages of documents. In addition, the parties each took over 1,000 hours of depositions. As discovery progressed and trial loomed, the Court held regularly scheduled and, when events necessitated it, irregularly scheduled status conferences and conference calls and oversaw the filing of many status reports and praecipes.
In addition, the parties filed, pursuant to limitations imposed by the Court, 18 summary judgment motions and countless motions in limine. The Court granted all of the Government's Motions for partial summary judgment to dismiss Defendants' Affirmative Defenses based on: (1) the assertion that the Federal Trade Commission had exclusive authority over Defendants' marketing activities (Order #356); (2) waiver, equitable estoppel, laches, unclean hands and in pari delicto (Order #476); (3) the assertion that the Government's claims and remedies sought violated the 8th Amendment of the Constitution and the Ex Post Facto Clause (Order #509); (4) the assertion that constitutional separation of powers precludes the Government's claims (Order #510); (5) the assertion that the RICO claims and relief sought are prohibited by the 10th Amendment of the Constitution and by separation of powers and that Defendants are not jointly and severally liable for any disgorgement ordered by the Court (Order #538); and (6) res judicata, collateral estoppel, release, accord and satisfaction, and mootness (Order #586). In addition, the Court granted the Government's Motions for partial summary judgment that each Defendant is distinct from the RICO enterprise (if the Court were to determine that there is an enterprise) and that a Defendants' liability for a RICO conspiracy does not require that Defendant to participate in the operation or management of the Enterprise (Order #591). All other summary judgment motions of the Government and the Defendants were denied because the existence of material facts in dispute rendered summary judgment inappropriate.
Upon resolution of all preliminary matters, trial began on September 21, 2004. Together, the parties presented eighty four witnesses and tens of thousands of exhibits. The trial lasted nine months.
On February 4, 2004, our Circuit rendered a decision on an interlocutory appeal from this case. Defendants had appealed this Court's decision denying summary judgment as to the Government's claim for disgorgement under 18 U.S.C. 1964(a). (Order #550). In that opinion, written by Judge David Sentelle, the Court of Appeals determined that disgorgement is not a permissible remedy in civil RICO cases. United States of America v. Philip Morris USA Inc., et al., 396 F.3d 1190 (D.C. Cir. 2004). As a result, because $280 billion in disgorgement was the centerpiece of its requested relief, the Government moved for leave to reformulate their proposed remedies. The Court granted that motion. After the liability phase of the trial concluded, the parties were allowed to put on evidence pertaining to the remedies sought by the Government.
At the conclusion of the remedies trial, several entities and organizations moved to intervene in order to assert their interests in the proposed relief. The Court granted the Motions to Intervene for the following parties: American Cancer Society; American Heart Association; American Lung Association; Americans for Nonsmokers' Rights; National African American Tobacco Prevention Network; and Tobacco-Free Kids Action Fund. These parties had a clear interest in advancing the public health and in the remedies proposed in this case.
In addition, the Court received numerous motions for leave to appear as amicus curiae, in support of the United States, from organizations who also wanted to assert their views on the appropriate and necessary remedies in this case. The Court granted the Motions of the following states and organizations because of their enormous collective knowledge and experience in the fields of public health, smoking, and disease: Arkansas; Connecticut; Hawaii; Idaho; Iowa; Kentucky; Louisiana; Maryland; Massachusetts; Nevada; New Jersey; New Mexico; New York; Ohio; Oklahoma; Oregon; Tennessee; Vermont; Washington; Wisconsin; Wyoming; and the District of Columbia.; Citizens' Commission to Protect the Truth; Regents of the University of California; Tobacco Control Legal Consortium, including 18 additional nonprofit organizations; Essential Action; the City and County of San Francisco; the Asian Pacific Island American Health Forum; San Francisco African-American Tobacco Free Project; Black Network in Children's Emotional Health.
To the extent that they are relevant, all arguments of the intervenors and amici have been considered and addressed.
On August 8, 2005, each side simultaneously submitted its 2,500 page Proposed Findings of Fact. As August turned into September, the Government filed its 250 page opening Post-trial brief; Defendants filed their 250 page opposition to the Government's brief and their 50 page opening brief on affirmative defenses; the Government filed its 100 page reply brief and 50 page opposition to Defendants' brief on affirmative defenses; and Defendants filed their 20 page reply brief on affirmative defenses.
The Court has issued 1010 Orders during the course of this arduous litigation. Some pundits have opined that this is the largest piece of civil litigation ever brought. The Court will leave that judgment to others.
FINDINGS OF FACT
III. CREATION, NATURE, AND OPERATION OF THE ENTERPRISE
"Enterprise" is a statutory term contained in 18 U.S.C. § 1962(c). The Court's use of it in these Findings does not imply that Defendants' activities meet the statutory definition contained in 18 U.S.C. § 1961(4). That issue will be fully discussed in the Conclusions of Law.
The following Section sets forth in enormous detail the intricate, interlocking, and overlapping web of national and international organizations, committees, affiliations, conferences, research laboratories, funding mechanisms, and repositories for smoking and health information which Defendants established, staffed, and funded in order to accomplish the following goals: counter the growing scientific evidence that smoking causes cancer and other illnesses, avoid liability verdicts in the growing number of plaintiffs' personal injury lawsuits against Defendants, and ensure the future economic viability of the industry.
A. Pre-1953 Overview — The Rise in American Smoking and the Status of Scientific Research on Smoking and Health
1. Tobacco usage in North America dates as far back to at least the 1600s when Christopher Columbus came to America and observed Native Americans smoking tobacco leaves. By the end of the 1800s, scientists observed a noticeable rise in the incidence of cigarette smoking, as well as a noticeable rise in the number of cases of lung cancer. Samet TT, 9/29/04, 1027: 5-13.
2. Prior to 1900, lung cancer was virtually unknown as a cause of death in the United States. By 1935, there were an estimated 4000 lung cancer deaths annually, and by 1945 that figure had almost tripled. VXA1601844-2232 at 1986 (US 64057); Brandt WD, 31:16-32:1. Annual per capita consumption of cigarettes in 1900 was approximately forty-nine; by 1930 that figure had grown to 1300; by 1950, annual per capita consumption had skyrocketed to over 3000 cigarettes. Brandt WD, 32:2-17; Samet TT, 9/29/04, 1031:13-1033:25.
3. By the 1920s, scientists were beginning to investigate the relationship between the concomitant rise in cigarette consumption and lung cancer, and to focus on the health consequences of smoking. Brandt WD, 32:2-17. Id. For example, as early as 1928, researchers conducting a large field study associated heavy smoking with cancer. 2060544267-4274 (US 39010). In 1931, Frederick L. Hoffman, a well-known statistician for the Prudential Insurance Company, linked smoking with cancer. VXA2510202-0219 (US 63597). In 1938, a population biologist and biometrician from Johns Hopkins Medical School, Raymond Pearl, published one of the first significant statistical analyses of the health impact of smoking and concluded that individuals who smoked could expect shorter lives. 503285883-5884 (US 20714). In the 1930s, chest surgeons Alton Oschner and Richard Overholt published observations that the patients they saw with advanced lung malignancies were typically smokers. 85868807-8823 at 8807 (US 63596). By the end of the 1940s and early 1950s, far more evidence linking smoking to disease began to appear, ranging from the ground-breaking statistical studies of two eminent British statisticians, Bradford Hill and Sir Richard Doll, to the Graham and Wynder studies at Washington University, to animal research studies pointing to the carcinogenicity of cigarettes.
All of these studies will be discussed in much greater detail in Section IV, infra.
4. The mainstream media began to pay attention to the growing scientific literature and report on the scientists' findings. For example, in 1953 Readers Digest, which was at the time one of the most popular publications in the country, published a series of articles titled "Cancer by the Carton" which relayed the scientific findings of Drs. Wynder and Graham. The magazine quoted one of the conclusions they reached in their American Cancer Society study which had been published in the American Medical Association's Journal of May 27, 1950 ("JAMA"), namely that "Excessive and prolonged use of tobacco, especially cigarettes, seems to be an important factor in the induction of bronchiogenic carcinoma." 03358234-8235 at 8235 (US 46459). Such mainstream media publicity in popular magazines such as Time, Life, and Reader's Digest triggered understandable public concern. Brandt WD, 48:1-18.
5. In short, by 1953, there had been a very substantial rise in the annual per capita consumption of cigarettes and the number of deaths attributable to lung cancer; scientists were more and more convinced that a relationship existed between cigarette smoking and lung cancer; and the public was growing increasingly aware of and anxious about both developments.
B. Creation of the Enterprise
6. In December 1953, Paul M. Hahn, President of Defendant American, sent telegrams to the presidents of the seven other major tobacco companies and one tobacco growers organization, inviting them to meet and develop an industry response to counter the negative publicity generated by the studies linking cigarette smoking and lung cancer. The telegrams were sent to: Edward A. Darr, President of Defendant Reynolds; Benjamin F. Few, President of Defendant Liggett; William J. Halley, President of Defendant Lorillard; Timothy V. Hartnett, President of Defendant B W; O. Parker McComas, President of Defendant Philip Morris; Joseph F. Cullman, Jr., President of Benson Hedges; J.B. Hutson, President of Tobacco Associates, Inc.; and J. Whitney Peterson, President of United States Tobacco Co. 508775416-5416 (JD 041939); HT0072119-2125 (US 21175), (US 54357); CTRBYL000001-0014 (US 21138); MNAT00609882-9886 (US 59809).
7. Executives from every tobacco company listed above, with the exception of Liggett, met in New York City at the Plaza Hotel on December 14, 1953. The executives discussed (I) the negative publicity from the recent articles in the media, (ii) responding to the problem by jointly engaging a public relations counsel, and (iii) removing health themes from advertising. They also discussed Liggett's decision not to attend the meeting because "in the course of time the whole thing would blow over." The executives also authorized the five members of the group who had their offices in New York to engage the services of Hill Knowlton on behalf of the whole committee; to meet with John Hill at the Plaza Hotel the next day, December 15th, to discuss the negative publicity problem; and to request that Hill Knowlton, if it accepted the assignment, submit recommendations to the full committee at a subsequent meeting as to how to proceed. 680262226-2228 (US 88165); HT0072119-2125 (US 21175); CTRBYL000001-0014 (US 21138); Brandt WD, 50:21-51:23. It is clear from all the surrounding circumstances that representatives of Hill Knowlton had been contacted about taking on this assignment prior to December 14, 1953.
8. The tobacco company executives did not meet, as they have suggested, in an altruistic response to requests from the scientific community that the industry fund research on smoking and health. Rather, they convened a strategy meeting of the highest company officials to formulate an industry-wide response (a) to the public's growing anxiety generated by the negative publicity about the direction of scientific research on cigarettes and cancer, and (b) to what they accurately understood to be a major threat to their corporations' economic future. While it is true that there was a recommendation "to do good science, independent science," Brandt TT, 9/27/04, 740:15-17, the minutes of the meeting reveal that:
It was recommended that this [research] group undertake to enlist the cooperation of the National Institutes of Health of the U.S. Public Health Service in working out a program of scientific investigation through which the facts in the present controversy would be developed. This was considered highly advisable in that it would give to the program an aspect of independence to the program to a degree not obtainable in any other way.
(no bates) (US 88165 at 68026227).
9. At the December 14, 1953 meeting, Paul Hahn of American and Timothy Hartnett of B W told the other company presidents that
they had taken definite steps to remove the health themes from the advertising programs on Pall Mall and Viceroy. Darr [of Reynolds] made the point that he could not concur in sponsoring an industry paid advertising campaign (if this is the course recommended by the Public Relations Counsel) as long as the health theme continued to be featured by any one of the companies represented on the committee.
J. Whitney Peterson of United States Tobacco and Hartnett "expressed their agreement with Mr. Darr's views in this matter." Hill Knowlton wanted to develop some understanding with the Defendants that
none is going to seek a competitive advantage by inferring to its public that its product is less risky than others. (No claims that special filters or toasting, or expert selection of tobacco, or extra length in the butt, or anything else, makes a given brand less likely to cause you-know-what. No "Play-Safe-with-Luckies.)"
TLT0901532-1540 at 1539-1540 (US 87224) (emphasis in original); 680262226-2228 (US 88165); TLT0900422-0430 at 0423 (US 88169); TLT0901564-1572 at 1565 (US 88194); TLT0901541-1545 at 1543 (US 87225); 2048375960-5964 (US 85819); JH000493-0501 at 0500-0501 (US 21179).
10. At the December 15, 1953 meeting, the participants were Paul Hahn of American, O. Parker McComas of Philip Morris, Joseph Cullman, Jr. of Benson Hedges, J. Whitney Peterson of United States Tobacco, and representatives from Hill Knowlton, including John Hill and Bert Goss. Hill Knowlton was told that the industry viewed the "problem [posed by the scientific studies] as being extremely serious and worthy of drastic action." JH000502-0506 at 0504 (US 20191); TLT0901541-1545 at 1543 (US 87225). According to a Hill Knowlton memo dated December 22, 1953, the public relations firm was asked to
develop suggestions for dealing with the public relations problem confronting the industry as a result of widely publicized assertions by a few medical research men regarding the link between cigarette smoking and lung cancer.
TLT0901552-1552 (US 88192).
11. In an internal planning memoranda, Hill Knowlton assessed their tobacco clients' problems in the following manner:
There is only one problem — confidence, and how to establish it; public assurance, and how to create it — in a perhaps long interim when scientific doubts must remain. And, most important, how to free millions of Americans from the guilty fear that is going to arise deep in their biological depths — regardless of any pooh-poohing logic — every time they light a cigarette. No resort to mere logic ever cured panic yet, whether on Madison Avenue, Main Street, or in a psychologist's office. And no mere recitation of arguments pro, or ignoring of arguments con, or careful balancing of the two together, is going to deal with such fear now. That, gentlemen, is the nature of the unexampled challenge to this office.
JH000493-0501 (US 21408); TLT0901532-1540 at 1534 (US 87224); Brandt WD, 53:16-54:10.
12. Ten days later, on December 24, 1953, Hill Knowlton submitted a proposal regarding the tobacco industry's public relations campaign, recommending that the companies form a joint industry research committee that would sponsor independent scientific research on the health effects of smoking and announce the formation of the research committee nationwide as news and in advertisements. Hill Knowlton also recommended that the companies fund objective research by scientists who were independent of the tobacco industry, and that an advisory board be established composed of a group of distinguished scientists from the fields of medicine, research and education "whose integrity is beyond question." 01138856-8864 (JE 20036); TLT0900422-0430 (US 88169); TLT0901564-1572 (US 88194); see also TLT0901546-1549 (US 88191); TLT0901552 (US 88192).
13. In its proposal, Hill Knowlton expressed its concern about the "health" claims being made in the Defendants' advertising:
[I]t is impossible to overlook the fact that some of the industry's advertising has come in for serious public criticism because of emphasis on health aspects of smoking . . . it must be recognized that some of the advertising may have created a degree of skepticism in the public mind which at the start at least could affect the believability of any public relations effort.
In fact, one of the questions posed by Hill Knowlton to the Defendants was
whether the companies considere[d] that their own advertising and competitive practices have been a principal factor in creating a health problem? The companies voluntarily admitted this to be the case even before the question was asked. They have informally talked over the problem and will try to do something about it.
680262226-2228 (US 88165); TLT0900422-0430 at 0423 (US 88169); TLT0901564-1572 at 1565 (US 88194); TLT0901541-1545 at 1543 (US 87225); 2048375960-5964 (US 85819).
14. Four days later, on December 28, 1953, another meeting was held at the Plaza Hotel and was attended by Paul Hahn of American; Edward Darr of Reynolds; Herbert A. Kent, Chairman of Lorillard; Timothy Hartnett of B W; O. Parker McComas of Philip Morris; Joseph Cullman of Benson Hedges; J.B. Hutson, President of Tobacco Associates, Inc.; J. Whitney Peterson of United States Tobacco; and three people from the public relations firm of Hill Knowlton, John Hill, Bert Goss, and Richard Darrow. The attendees agreed on Tobacco Industry Research Committee ("TIRC") as the official name of the research committee; chose Paul Hahn as temporary chairman of the committee; agreed that the search should begin immediately for a qualified director who, together with the companies' research directors, would recommend members for the research advisory board; and reviewed and accepted the Hill Knowlton proposal regarding the tobacco industry's public relations campaign. TLT0901411-1414 (US 88188); 01138856-8864 (JE 20036). The attendees also agreed on a mission statement for the new organization which stated that its "purposes and objectives" were
to aid and assist research into tobacco use and health, and particularly into the alleged relationship between the use of tobacco and lung cancer, and to make available to the public factual information on this subject.
(no bates) (JD 000294 at 70103757). Hill Knowlton played a major role in creating, refining, and implementing the strategies adopted by the participants at the December meetings.
15. Although Defendant Liggett did subsequently participate in Enterprise activities, Liggett did not participate in the December meetings because, at the time, the company believed that "the proper procedure is to ignore the whole controversy." JH000502-0506 at 0502 (US 20191); TLT0901541-1545 at 1541 (US 87225).
16. Following Hill Knowlton's advice, the formation and purpose of TIRC was announced on January 4, 1954, in a full-page advertisement called "A Frank Statement to Cigarette Smokers" published in 448 newspapers throughout the United States. All sponsoring cigarette manufacturers and other tobacco industry entities were clearly identified. McAllister PD, United States v. Philip Morris, 5/23/02, 112:14-114:13; McAllister WD, 9:10-22; 11309817-9817 (US 20277); 86017454-7454 (US 21418); USX6390001-0400 at 0004 (US 89555); TLT0900465-0465 (US 88171);see also TLT0900478-0480 (US 88440); TLT0900481-0483 (US 88441).
17. The Frank Statement was subscribed to by the following domestic cigarette and tobacco product manufacturers, organizations of leaf tobacco growers, and tobacco warehouse associations that made up TIRC: Defendant American by Paul Hahn, President; Defendant B W by Timothy Hartnett, President; Defendant Lorillard by Herbert Kent, Chairman; Defendant Philip Morris by O. Parker McComas, President; Defendant Reynolds by Edward A. Darr, President; Benson Hedges by Joseph Cullman, Jr., President; Bright Belt Warehouse Association by F.S. Royster, President; Burley Auction Warehouse Association by Albert Clay, President; Burley Tobacco Growers Cooperative Association by John Jones, President; Larus Brother Company, Inc. by W.T. Reed, Jr., President; Maryland Tobacco Growers Association by Samuel Linton, General Manager; Stephano Brothers, Inc. by C.S. Stephano, Director of Research; Tobacco Associates, Inc. by J.B. Hutson, President; and United States Tobacco by J. Whitney Peterson, President. 11309817-9817 (US 20277); 86017454-7454 (US 21418); HT0072119-2125 (US 21175); CTRBYL000001-0014 (US 21138).
18. The Frank Statement set forth the industry's "open question" position that it would maintain for more than forty years — that cigarette smoking was not a proven cause of lung cancer; that cigarettes were not injurious to health; and that more research on smoking and health issues was needed. In the Frank Statement, the participating companies accepted "an interest in people's health as a basic responsibility, paramount to every other consideration in our business" and pledged "aid and assistance to the research effort into all phases of tobacco use and health." The companies promised that they would fulfill the obligations they had undertaken in the Frank Statement by funding independent research through TIRC, free from any industry influence. 11309817-9817 (US 20277); 86017454-7454 (US 21418).
19. The "Frank Statement" in its entirety stated as follows:
RECENT REPORTS on experiments with mice have given wide publicity to a theory that cigarette smoking is in some way linked with lung cancer in human beings.
Although conducted by doctors of professional standing, these experiments are not regarded as conclusive in the field of cancer research. However, we do not believe that any serious medical research, even though its results are inconclusive should be disregarded or lightly dismissed.
At the same time, we feel it is in the public interest to call attention to the fact that eminent doctors and research scientists have publicly questioned the claimed significance of these experiments.
Distinguished authorities point out:
1. That medical research of recent years indicates many possible causes of lung cancer.
2. That there is no agreement among the authorities regarding what the cause is.
3. That there is no proof that cigarette smoking is one of the causes.
4. That statistics purporting to link cigarette smoking with the disease could apply with equal force to any one of many other aspects of modern life. Indeed the validity of the statistics themselves is questioned by numerous scientists.
We accept an interest in people's health as a basic responsibility, paramount to every other consideration in our business.
We believe the products we make are not injurious to health.
We always have and always will cooperate closely with those whose task it is to safeguard the public health.
For more than 300 years tobacco has given solace, relaxation, and enjoyment to mankind. At one time or another during these years critics have held it responsible for practically every disease of the human body. One by one these charges have been abandoned for lack of evidence.
Regardless of the record of the past, the fact that cigarette smoking today should even be suspected as a cause of disease is a matter of deep concern to us.
Many people have asked us what are we going to do to meet the public's concern aroused by the recent reports. Here is the answer:
1. We are pledging aid and assistance to the research effort into all phases of tobacco use and health. This joint financial aid will of course be in addition to what is already being contributed by individual companies.
2. For this purpose we are establishing a joint industry group consisting initially of the undersigned. This group will be known as TOBACCO INDUSTRY RESEARCH COMMITTEE ["TIRC"].
3. In charge of the research activities of the Committee will be a scientist of unimpeachable integrity and national repute. In addition there will be an Advisory Board of scientists disinterested in the cigarette industry. A group of distinguished men [sic] from medicine, science, and education will be invited to serve on this Board. These scientists will advise the Committee on its research activities.
This statement is being issued because we believe the people are entitled to know where we stand on this matter and what we intend to do about it.
11309817-9817 (US 20277); 86017454-7454 (US 21418); TLT0901611-1611 (US 88196); Brandt WD, 55:8-21.
20. The issuance of the "Frank Statement to Cigarette Smokers," was an effective public relations step. By promising the public that the industry was absolutely committed to its good health, the Frank Statement allayed the public's concerns about smoking and health, reassured smokers, and provided them with an effective rationale for continuing to smoke. Brandt WD, 54:20-55:7; JH000493-0501 (US 21179), (US 21408); TLT0901532-1540 at 1534 (US 87224).
C. TIRC/CTR — Tobacco Industry Research Committee/Council for Tobacco Research-USA
21. With the creation of TIRC in January 1954, the Defendants established a sophisticated public relations vehicle — based on the premise of conducting independent scientific research — to deny the harms of smoking and reassure the public. That essential strand of their long-range strategy was developed and implemented in 1953-54, and guided their activities for more than forty years. Brandt WD, 61:23-62:7.
22. In response to an inquiry by Stanley Barnes, Assistant Attorney General, United States Department of Justice on January 21, 1954, TIRC Chairman Paul Hahn sent a letter to Barnes dated January 26, 1954, enclosing a statement of the origin, purpose, and proposed functions of TIRC. The purposes and objectives of TIRC as recorded in the Statement Concerning the Origin and Purpose of TIRC were
to aid and assist research into tobacco use and health, and particularly into the alleged relationship between the use of tobacco and lung cancer, and to make available to the public factual information on this subject.
508775382-5382 (JD 090191); 70103754-3761 (JD 000294); MTD0030448-0455 (US 21218); 70103755-3761 (JD 043064); HT0072119-2125 (US 21175); TIMN0116378-6384 (US 21277); TLT0901026-1035 (US 88181); McAllister WD, 28:14-29:1; Zahn PD,Cipollone v. Liggett, 12/16/86, 51:24-52:6, 53:9-12 at 0005-0007 (US 89555).
23. The statement of origin and purpose was signed in the name of TIRC by Chairman Paul Hahn, was ratified and adopted by TIRC, and attached as Exhibit A to the Bylaws of the Tobacco Industry Research Committee. CW00787817-7842 (US 21420); CTRBYL000001-0014 (US 21138); 70103754-3761 (JD 000294); MTD0030448-0455 (US 21218); 70103755-3761 (JD 043064); HT0072119-2125 (US 21175), (US 54357); TIMN0116378-6384 (US 21277); TLT0901026-1035 (US 88181). All of the bylaws could be altered and repealed by a majority vote of TIRC's corporate members, except "Article I. Purposes and Objectives" which could only be altered with the unanimous consent of all the corporate members. CW00787817-7842 at 7817, 7822 (US 21420); CTRBYL000001-0014 at 0001, 0006 (US 21138).
24. The statement of origin and purpose stated that TIRC had engaged the public relations firm of Hill Knowlton to assist TIRC in effectuating its purpose. CW00787817-7842 (US 21420); CTRBYL000001-0014 (US 21138); 70103754-3761 (JD 000294); MTD0030448-0455 (US 21218); 70103755-3761 (JD 043064); HT0072119-2125 (US 21175); TIMN0116378-6384 (US 21277); TLT0901026-1035 (US 88181); TLT0900723-0728 (US 88179); see also USX6390001-0400 at 0012 (US 89555).
25. The TIRC bylaws stated that each corporate member of the TIRC "shall from time to time appoint an individual to serve as the personal member of the Committee representing such corporate member" and that a majority of the personal members of TIRC would select such officers, agents, and employees as they deemed necessary, including a Chairman to serve for a term of one year and until his successor is elected and qualified. CW00787817-7842 (US 21420); CTRBYL000001-0014 (US 21138).
26. The first officers selected by TIRC members were: Paul Hahn of American as temporary Chairman; J. Whitney Peterson of United States Tobacco as Vice Chairman; Joseph Cullman of Benson Hedges as Treasurer; and Wilson Thomas ("W.T.") Hoyt of Hill Knowlton as Secretary. CW00787817-7842 (US 21420); CTRBYL000001-0014 (US 21138); 70103754-3761 (JD 000294); MTD0030448-0455 (US 21218); 70103755-3761 (JD 043064); HT0072119-2125 (US 21175); TIMN0116378-6384 (US 21277); TLT0901026-1035 (US 88181).
27. TIRC bylaws described the method of funding TIRC as follows:
Each of the cigarette manufacturing corporate members has pledged to the Committee for payment before or during 1954 an amount equal to 1/4 of a cent for each one thousand of tax-paid cigarettes produced by such company in 1953 as estimated by Harry M. Wootten and published under the date of January 15, 1954, and has pledged to the Committee for payment during 1954 an additional amount equal to one-half of the amount originally pledged.
CW00787817-7842 at 7819 (US 21420); CTRBYL000001-0014 at 0003 (US 21138).
28. At its January 29, 1964 meeting, the TIRC Executive Committee agreed to change the name of the organization to the Council for Tobacco Research — U.S.A. ("CTR"). 93218985-8986 (US 21116). The organization bylaws were amended February 1, 1964, to reflect the name change. Although the name changed, the purposes, objectives, and functions of the organization did not. According to the amended bylaws, the purposes and objectives of CTR remained the same, i.e.
to aid and assist research into tobacco use and health, and particularly into the alleged relationship between the use of tobacco and lung cancer and to make available to the public factual information on this subject.
682631364-1368 (US 21024); CW00787817-7842 at 7831-7835 (US 21420); see also USX6390001-0400 at 0002 (CTR Response to Request for Admission No. 82). Timothy Hartnett announced the organization name change in a March 1964 press release. 508775085-5088 (US 20815); HK1865014-5017 (US 77847).
29. Robert Heimann, Chairman and Chief Executive Officer of American, commented upon the TIRC's name change in a December 6, 1977 letter to Addison Yeaman, CTR's Chairman and President and formerly the General Counsel of B W:
[W]e decided some years ago to rename T.I.R.C. "The Council for Tobacco Research" because "Tobacco Industry Research Committee" sounded too much like industry-directed, as distinct from independent, research.
2022200158-0160 at 0160 (US 87532).
30. In 1971, CTR changed from an unincorporated association to a corporation pursuant to the laws of the State of New York. CTR's Certificate of Incorporation was filed with the Department of State of the State of New York on January 8, 1971. The bylaws of the newly-formed corporation were adopted at the first meeting of CTR's Board of Directors on January 13, 1971. CTRMIN-BD000001-0303 at 0002 (JD 093208); CTRINC000001-0019 (JD 090053); McAllister WD, 10:7-14.
31. Following incorporation, CTR was divided into two classes of members, Class A and Class B. Class A members were: (1) designated by the Board of Directors; (2) domestic persons who sold cigarettes in the United States; and (3) manufacturers of their own brand of cigarettes. Class A members included American Tobacco, B W, Lorillard, Philip Morris, Reynolds, and United States Tobacco. Class B members were: (1) designated by the Board of Directors; and (2) a person, corporation, association, or partnership not eligible for Class A membership but involved in the production, manufacturing, and distribution of cigarettes. Class B members included Bright Belt Warehouse Association, Burley Auction Warehouse Association, Burley Tobacco Growers, Imperial Tobacco, Tobacco Associates, and United States Tobacco. CTRBYL000031-0049 (JD 090055); CTRMIN-BD000001-0303 at 0003 (JD 093208); 512678857-8863 (US 30046).
32. In 1963, Clarence Cook Little and W.T. Hoyt invited Liggett to join TIRC in order to secure complete industry cooperation in dealing with the 1963 Surgeon General's Advisory Committee. Liggett declined the invitation but, in its response, assured its cooperation: "[T]he aims of all of us are the same and the path that we [Liggett] have followed has been similar to that of the Committee in may respects." RC6007182-7183 (LI 142).
33. Liggett became a member of CTR in 1964 and resigned in 1968, but continued to participate in CTR activities for decades. In its January 1968 resignation letter, Liggett's President stated "we will continue to participate in defraying the cost of [CTR] Special Projects sponsored by the Council after evaluation of each Project on an individual basis." CTR-TIRC-MIN000238-0244 at 0241 (US 33023). Liggett made contributions to CTR's Special Projects fund from 1966 through 1975 and to CTR's Literature Retrieval Division from 1971 through 1983. DXA0630917-1033 at 1024-1025 (US 75927). Liggett was also asked to attend scientific meetings at CTR. 044227839-7842 (US 20066); LWDOJ9055586-5587 (US 26007) (Confidential).
34. Representatives of Liggett attended CTR meetings at which CTR Class A members, CTR Class B members, CTR officers, CTR public relations counsel, tobacco industry attorneys, and other representatives of cigarette manufacturers and the Tobacco Institute were present. CTRMIN-MOM000001-0015 (US 21145); CTRMIN-MOM000053-0069 (US 32617).
35. Although Defendant BATCo was not a member of TIRC or CTR, communication and contact between high level smoking and health research scientists at BATCo and scientists at TIRC/CTR was frequent and direct. BATCo scientists, including David G. Felton, Lionel C.F. Blackman, and R.E. Thornton, visited TIRC/CTR several times over the years. TINY0003106-3116 (US 21369); 105408490-8499 (US 21135); 517002090-2091 (US 66527).
36. For example, in 1958, three British scientists, D.G.I. (David) Felton of BATCo, W.W. Reid of BATCo-Australia, and H.R. (Herbert) Bentley of Imperial Tobacco, visited the United States for four weeks and met with members of TIRC's Scientific Advisory Board, as well as with representatives of Defendants TIRC/CTR, American, Liggett, and Philip Morris. TINY0003106-3116 (US 21369); 105408490-8499 (US 21135), (US 76169); Brandt WD, 94:8-95:3.
37. In October 1979, David Felton of BATCo went on a month-long "fact-finding mission to a number of laboratories engaged in research relating to smoking and health" in the United States. Felton was accompanied by two lawyers for most of his visits, either Patrick Sirridge of Shook, Hardy Bacon or Timothy Finnegan of Jacob Medinger. Near the end of the trip, Felton met with CTR executives and employees, including Addison Yeaman, CTR President; William Gardner, CTR Scientific Director; W.T. Hoyt, CTR Executive Vice President; Robert Hockett, CTR Research Director; Vincent Lisanti, CTR Associate Research Director; and David Stone and Donald Ford, members of CTR's scientific staff. Discussions included CTR contract research, nitrosamines, smoking and stress, and nicotine research. During his visit, Felton also met with Tobacco Institute representatives Horace Kornegay, President, and Marvin Kastenbaum, Director of Statistics. 109879229-9295 (US 34923); 109879296-9308 (US 86063).
38. Defendants met frequently to discuss issues facing the Enterprise. Beginning in 1954 and until 1970, representatives of member companies met regularly with TIRC/CTR staff. After CTR's incorporation, in 1971 and until 1999, the Enterprise met annually at CTR's meetings of members. At these meetings, representatives of the Enterprise discussed activities of CTR which furthered their goals such as Special Projects, the Literature Retrieval Division, contract research, public relations, the TIRC/CTR Scientific Advisory Board, and scientific conferences. CTR-TIRC-MIN000001-0252 (JD 093292); CTR-TIRC-MIN000033-0052 (US 33006); CTR-TIRC-MIN000174-0186 (US 33016); CTR-TIRC-MIN000224-0231 (US 33021); CTR-TIRC-MIN00023-0244 (US 33023); CTR-TIRC-MIN000245-0255 (US 33024); 1002608337-8339 (US 85989); MM0010053-0056 (US 85990); CTRMIN-MOM000001-000015 (US 21145); CTRMIN-MOM000016-0034 (US 21170); CTRMIN-MOM000035-0052 (US 32616); CTRMIN-MOM000053-0069 (US 32617); CTRMIN-MOM000070-0087 (US 32618); CTRMIN-MOM000088-0089 (US 32619); CTRMIN-MOM000090-0104 (US 32620); CTRMIN-MOM000105-0117 (US 32621); CTRMIN-MOM000129-0142 (US 32623); CTRMIN-MOM000143-0154 (US 32624); CTRMIN-MOM000155-0167 (US 32625); CTRMIN-MOM000168-0181 (US 32626); CTRMIN-MOM000182-0195 (US 32627); CTRMIN-MOM000210-0221 (US 32629); CTRMIN-MOM000222-0233 (US 32630); CTRMIN-MOM000234-0244 (US 32631); CTRMIN-MOM000245-0255 (US 32632); CTRMIN-MOM000256-0268 (US 32633); CTRMIN-MOM000269-0280 (US 32634); CTRMIN-MOM000281-0294 (US 32635); CTRMIN-MOM000295-0306 (US 32636); CTRMIN-MOM000307-0318 (US 32637); CTRMIN-MOM000319-0331 (US 32638); CTRMIN-MOM000332-0334 (Ex. 32639); 70000261-0274 (US 31078); 70005388-5408 (US 31104); CW00800809-0811 (US 31368); TLT0901390-1393 (US 88186); TLT0901400-1410 (US 88187); JH000395-0400 (US 21178); TLT0901411-1414 (US 88188).
39. Members of the Enterprise also convened regularly between 1971 and 1998 at CTR's Board of Directors meetings. CTR's Board of Directors was made up of representatives from the member companies. At these meetings the CTR Board of Directors discussed and passed resolutions regarding issues such as CTR's budget, the status of grants and contract research, the election of officers, payment of dues, and amendments to the bylaws. In addition to Board members, attendees at the meetings included other corporate offices and executives from the tobacco companies, Defendants' legal counsel and public relations counsel, and representatives from the Tobacco Institute. CTRMIN-BD000017-0020 (US 32572); CTRMIN-BD000021-0025 (US 32573); CTRMIN-BD000026-0029 (US 32574); CTRMIN-BD000030-0034 (US 32575); CTRMIN-BD000035-0038 (US 32576); CTRMIN-BD000039-0044 (US 32577); CTRMIN-BD000045-0049 (US 32578); CTRMIN-BD000050-0054 (US 32579); CTRMIN-BD000055-0059 (US 32580); CTRMIN-BD000060-0109 (US 32581); CTRMIN-BD000110-0115 (US 32582); CTRMIN-BD000116-0121 (US 32583); CTRMIN-BD000122-0125 (US 32584); CTRMIN-BD000126-0129 (US 32585); CTRMIN-BD000135-0135 (US 32586); CTRMIN-BD000136-0140 (US 32587); CTRMIN-BD000141-0144 (US 32588); CTRMIN-BD000145-0146 (US 32589); CTRMIN-BD000147-0152 (US 32590); CTRMIN-BD000153-0157 (US 32591); CTRMIN-BD000158-0162 (US 32592); CTRMIN-BD000163-0165 (US 32593); CTRMIN-BD000172-0178 (US 32595); CTRMIN-BD000179-0182 (US 32596); CTRMIN-BD000187-0191 (US 32597); CTRMIN-BD000192-0194 (US 32598); CTRMIN-BD000200-0229 (US 32600); CTRMIN-BD000230-0235 (US 32601); CTRMIN-BD000236-0237 (US 32602); CTRMIN-BD000238-0245 (US 32603); CTRMIN-BD000246-0247 (US 32604); CTRMIN-BD000248-0251 (US 32605); CTRMIN-BD000252-0255 (US 32606); CTRMIN-BD000256-0260 (US 32607); CTRMIN-BD000261-0262 (US 32608); CTRMIN-BD000263-0267 (US 32609); CTRMIN-BD000268-0270 (US 32610); CTRMIN-BD000271-0275 (US 32611); CTRMIN-BD000276-0277 (US 32612); CTRMIN-BD000278-0283 (US 32613); CTRMIN-BD000284-0285 (US 32614); CTRMIN-BD000286-0291 (US 32615); 70000636-0638 (JE 31084); 70000275-0279 (US 31080); 70001297-1298 (US 31095); 70005382-5387 (JE 31103); 70005409-5416 (JE 31106); CTRMIN-BD000001-000303 (JD 093208); ARU1130828-0904 (US 86773); Kornegay PD, Cipollone v. Liggett, 8/17/84, 195:21-196:7.
40. While Philip Morris Companies was not a Class A member of CTR, Philip Morris Companies executives attended and participated in meetings of the CTR Board of Directors from 1985 to 1992. These executives included Thomas Ahrensfeld, Senior Vice President and General Counsel; Murray Bring, Senior Vice President and General Counsel; Hugh Cullman, Vice Chairman of the Board; Alexander Holtzman, Vice President and Associate General Counsel; John Murphy, President and CEO; and R. William Murray, President, CEO, and Vice Chairman of the Board. CTRMIN-BD000001-000303 at 0187, 0192, 0195, 0200, 0230, 0236, 0238, 0246, 0248, 0252, 0256, 0261, 0263, 0268 (JD 093208).
41. Lorraine Pollice, CTR Corporate Secretary and Treasurer for over twenty years, attended CTR Board of Directors Meetings and CTR Annual Member Meetings, and personally prepared minutes of those meetings. Pollice WD, 6:14-7:22; 7:23-12:12. Although the minutes of meeting after meeting show participation by Altria representatives, Pollice expressed confusion and uncertainty about the precise corporate affiliation of particular participants. See, e.g., CTRMIN-BD000187-0191 (US 32597); CTRMIN-BD000200-0229 (US 32600); CTRMIN-BD000230-0235 (US 32601); CTRMIN-BD000236-0237 (US 32602); CTRMIN-BD000238-0245 (US 32603); CTRMIN-BD000246-0247 (US 32604); CTRMIN-BD000248-0251 (US 32605); CTRMIN-BD000252-0255 (US 32606); CTRMIN-BD000256-0260 (US 32607); CTRMIN-BD000261-0262 (US 32608); CTRMIN-BD000263-0267 (US 32609); CTRMIN-BD000268-0270 (US 32610); CTRMIN-MOM000222-0233 (US 32630); CTRMIN-MOM000234-0244 (US 32631); CTRMIN-MOM000245-0255 (US 32632); CTRMIN-MOM000256-0268 (US 32633); CTRMIN-MOM000269-0280 (US 32634); CTRMIN-MOM000281-0294 (US 32635); CTRMIN-MOM000295-0306 (US 32636); CTRMIN-MOM000307-0318 (US 32637). Her testimony is simply not credible since it was directly contrary to the documents themselves, which were never corrected by Pollice herself or by former CTR presidents or by outside counsel for CTR who reviewed and finalized the minutes. Pollice WD, 6:1-25; Pollice TT, 10/04/04, 01526:22-01527:14; Pollice TT, 10/04/04, 01528:19-01529:1.
42. From 1954 through October 31, 1999, payments to CTR's General Fund from Defendants totaled $473,369,512.22; $31,928,239.26 from American; $67,666,080.25 from B W; $40,747,457.89 from Lorillard; $189,506,678.86 from Philip Morris; $141,890,169.04 from Reynolds; and $721,868.85 from Liggett. DXA0630917-1033 at 1017-1023 (US 75927); USX6390001-0400 at 0008 (US 89555).
43. From 1966 through October 31, 1990, payments to CTR's Special Projects fund (discussed at Section III(E)(2), infra) totaled $18,270,623.65, which included: $29,665.00 from American; $2,571,345.40 from B W; $144,254.75 from Liggett; $1,638,490.68 from Lorillard; $5,837,923.49 from Philip Morris; and $6,029,255.33 from Reynolds. DXA0630917-1033 at 1024 (US 75927) (CTR Response to First Set of Interrogatories, Schedule C).
44. From 1971 through April 15, 1983, payments to CTR's Literature Retrieval Division (discussed at Section III(G),infra) totaled $16,870,480.00, which included: $2,214,135.00 from American; $2,681,358.00 from B W; $606,043.50 from Liggett; $811,840.50 from Lorillard; $4,813,415.50 from Philip Morris; and $5,743,687.50 from Reynolds. DXA0630917-1033 at 1025 (US 75927) (CTR Response to First Set of Interrogatories, Schedule C).
1. Selection and Approval of TIRC's Scientific Advisory Board Members and Scientific Director
45. The first formal meeting of TIRC was held on January 18, 1954. At this first formal meeting, a budget of $1,200,000 was approved; an agreement between TIRC and Hill Knowlton was approved; the research program, calling for a Scientific Director and a Scientific Advisory Board ("SAB") was approved; a Law Committee was appointed; and the research directors of TIRC member companies were designated as the Industry Technical Committee ("ITC") (discussed further at Section III(F)(2),infra). CTR-TIRC-MIN000001-000252 at 0001-0004, 0018-0032 (JD 093292); ARU1130828-0904 (US 86773); TLT0901400-1410 (US 88187); JH000395-0400 (US 21178).
46. The Law Committee was composed of Chairman George Whiteside of Chadbourne, Parke, Whiteside, Wolf Brophy; John Vance Hewitt of Conboy, Hewitt, O'Brien Boardman; Leighton Coleman of Davis, Polk, Wardwell, Sunderland Kiendl; F.R. Wadlinger of Foulk, Porter Wadlinger; and Freeman Daniels of Perkins, Daniels Perkins. This committee drafted the TIRC bylaws. CTR-TIRC-MIN000001-000252 at 0001, 0006, 0021 (JD 093292); CTRMN039046-9106 at 9069 (JD 092825).
47. On January 7, 1954, the ITC held an informal meeting at which its members discussed qualifications for a Scientific Research Director for TIRC and efforts to find and retain a suitable scientist. The research directors were H.R. Hanmer of American; Irwin W. Tucker of B W; H.B. Parmele of Lorillard; Robert N. DuPuis of Philip Morris; Grant Clarke of Reynolds; Hugh Cullman of Benson Hedges; Clinton Baber of Larus Brother; C.S. Stephano of Stephano Brothers; and Ward B. Bennett of United States Tobacco. CTRMN039046-9106 at 9070, 9076 (JD 092825); TLT0901400-1410 (US 88187); CTRMIN-ITC000009-0011 (JD 095519); JH000395-0400 (US 21178).
48. At the January 7, 1954 meeting, the ITC members agreed that the TIRC Research Director should be a medical doctor, recognized in cancer research, and with experience in chemistry. The ITC nominated persons for the position of TIRC Research Director, and a subcommittee of the ITC, headed by Grant Clarke, Research Director for Reynolds, was appointed to process and screen the list of nominees. TLT0901400-1410 at 1404 (US 88187); JH000395-0400 at 0399 (US 21178).
49. At the March 15, 1954 meeting of TIRC, Chairman Paul Hahn of American, outlined the difficulties encountered in obtaining a Scientific Research Director, and suggested that SAB members be appointed before the Research Director so that they could then assist in selecting a Research Director. TLT0902041-2064 at 2043 (US 88360). The ITC was directed to draw up a suggested list of names for the SAB with the assistance of Hill Knowlton. TIRC appointed a subcommittee to select scientists to be invited to become members of SAB. CTR-TIRC-MIN000001-000252 at 0005-0006 (JD 093292); TLT0903093-3094 (US 88363); USX6390001-0400 at 0011-0012 (US 89555) (CTR Response to Request for Admission No. 111); ARU1130828-0904 at 0884-0890 (US 86773) (CTR Response to Interrogatory No. 12).
50. The ITC, public relations counsel Hill Knowlton, and the Law Committee were actively involved in searching for, interviewing, and selecting the scientists appointed to the first SAB. TLT0902041-2064 at 2043 (US 88360); TLT0903093-3094 (US 88363). The ITC screened the candidates being considered for membership on the SAB. 681879254-9715 at 9649 (US 21020).
51. Letters were sent to nine scientists inviting them to become members of the SAB, and acceptances were eventually obtained from seven. Their specialities included pathology, pharmacology, surgery, and statistics. The two scientists who did not accept were connected with the National Cancer Institute and believed that, as government employees, they should not, as a matter of policy, accept the invitation. CTR-TIRC-MIN000001-0252 at 0021 (JD 093292); CTRMN039046-9106 at 9051-9052 (JD 092825); 508775311-5311 (JD 093893); ARU1130828-0904 (US 86773).
52. The first meeting of the SAB was held on April 26, 1954. The SAB members chose as their Chairman, Clarence Cook Little, a well-known cancer researcher and geneticist of high integrity and national repute. At the second meeting of the SAB, Little was selected as Scientific Director on a part-time basis with an assistant who would serve on a full-time basis. In November 1954, Robert Hockett was chosen as Associate Scientific Director. Little served as SAB Chairman from 1954 to 1957 and as TIRC/CTR Scientific Director from 1954 to 1971. Little PD, Lartigue v. Reynolds, 10/5/60, 2713:20-21, 2715:4-12, 2721:9-11; Little PT,Zagurski v. American, 6/7/67, 652:21-653:2, 676:6-18. Following Little, the Scientific Directors were William Gardner (1973-1981), Sheldon Sommers (1981-1987), James Glenn (1988-1990), and Harmon McAllister (1991-1999). CTR-TIRC-MIN000001-0252 at 0022 (JD 093292); TLT0902041-2064 (US 88360); TLT0903105-3108 at 3105 (US 88366); ARU1130828-0904 (US 86773); CTRMN004928-4929 (US 85995); 11310050-0053 (JD 090066).
53. In a November 27, 1963 memorandum, Clarence Cook Little described the Enterprise's criteria for selecting the SAB members. Little wrote:
In the selection of a Scientific Advisory Board and in the acceptance of the nomination by that Board of a Scientific Director, it was clearly shown that the attitude of the TIRC was to pick scientists interested broadly in the origin and nature of the diseases implicated and in the evaluation of smoking as a possible factor, not as a proven one.70003601-3602 at 2601 (US 85993) (emphasis in original).
54. Clarence Cook Little's personal commitments and assumptions about cancer causality made him an ideal proponent of the industry's goal of maintaining a "controversy" rather than scientifically resolving the questions regarding smoking and health. Brandt WD, 86:10-18. Little explained at the press conference announcing his appointment that: "I am ultraconservative about cause and effect relationships." CW01054843-4879 at 4877 (US 20278). However, at that same press conference, Little made many claims about the health benefits of cigarette use:
It is very well-known, for example, that tobacco has relaxed a great many people. It is a very good therapy for a great many nervous people.
CW01054843-4879 at 4845 (US 20278).
55. Little repeatedly centered attention on the so-called "constitutional hypothesis"; other environmental risks; and the need for more research into the basic etiology of the diseases associated with smoking. Brandt WD, 86:19-22; McAllister WD, 123:18-22; Little PT, Zagurski v. American, 6/7/67, 661:9-663:9, 665:7-666:20. He believed that "the causation of lung cancer was not known," that it was a complicated and unsolved problem with many factors involved, such as nutrition, heredity, the mental type of the individual, present or former or existing infection, air pollution, and radiation. This statement of his beliefs became known as the "constitutional hypothesis." Little PD,Lartigue v. Reynolds, 10/5/60, 2729:1-2730:15, 2735:11-2736:2; CTRMN005534-5541 (US 21156); (no bates) (US 21224); (no bates) (US 21233); (no bates) (US 21834). He argued that "no positive evidence has been advanced by anybody who believes in the tobacco guilt theory that has made me change my mind." Little PD,Lartigue v. Reynolds, 10/5/60, 2782:10-16. Under Little's leadership, the SAB funded studies on vitamins, influenza, twins, and viruses, but not on carcinogenic agents in tobacco smoke because: "we believe that no such agents have been found which are carcinogenic to men," id. at 2755:6-18; "[w]e don't believe they are there and a will-of-the-wisp hunt for something that hasn't yet been shown is a waste of money," id. at 2761:14-22; "[t]here are no carcinogenic agents in tobacco tar that have been proven to cause cancer in man. . . . And I say again that to transfer from the skin of a mouse to the lung of a man is not science," id. at 2762:23-2763:13.
56. The SAB met regularly from 1954 until at least 1997 to review, approve, and renew grant applications and contracts. Those who attended the SAB meetings, in addition to SAB members, were the ITC Chairman, TIRC/CTR staff members, public relations counsel for TIRC/CTR, and (at times) Defendants' attorneys and scientific guests. Zahn PD, Cipollone v. Liggett, 12/16/1986, 106:3-107:1; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 78:3-79:5, 80:2-21; Zahn PD, Richardson v. Philip Morris, 12/1/1998, 96:10-16; CTRMIN-SAB000001-1061, 70011735-1757 (JD 090960); CTRMIN-SAB000001-1061 (US 21146); CTRMIN-SAB000070-0074 (US 80382); CTRMIN-SAB000320-0325 (US 80429); CTRMIN-SAB000326-0330 (US 80430); CTRMIN-SAB000337-0341 (US 80432); CTRMIN-SAB000342-0350 (US 80433); CTRMN004320-4323 (US 21148); CTRMN004539-4544 (US 21151); CTRMIN048368-8369 (US 85996); ZN7912-7921 (US 64789); SM0120005-0009 (US 65442); 955011516-1520 (US 32362); TLT0903247-3251 (US 87521); TLT0903189-3193 (US 87522); TLT0903145-3148 (US 87523); TLT0903132-3135 (US 87524); TLT0903116-3117 (US 87525); TLT0903181-3185 (US 87526); TLT0903177-3180 (US 87527); TLT0903166-3169 (US 87528); TLT0903208-3211 (US 88367); TLT0903202-3207 (US 88368); TLT0903197-3201 (US 88369).
57. Many meetings of the SAB had no written record. According to a confidential report on the December 9, 1981 meeting of the SAB, the following policy regarding meetings was reaffirmed: "to conduct informal 'in house' conferences on specific subjects 'off the record' held without minutes or publication, but not to sponsor open meetings with a resultant publication." This policy was in effect at least ten years prior to the 1981 meeting and continued into the late 1990s. CTRMIN-SAB 000611-0612 (US 80480); Lisanti PD, Richardson v. Philip Morris, 12/8/98, 112:16-21, 114:1-116:18.
58. Contrary to Defendants' assertions that the members of the SAB were disinterested parties who received no monetary compensation from the tobacco companies or from TIRC/CTR, sixteen members of the SAB (out of forty-three) were awarded over $5 million in grants-in-aid funding between 1954 and 1991. Sommers PD, Cipollone v. Liggett, 10/2/86, 130:4-131:1, 132:16-19; McAllister PD, United States v. Philip Morris, 5/23/02, 250:15-253:11; Zahn PD, Cipollone v. Liggett, 12/18/1986, 388:3-7; Lisanti PD, Engle v. Reynolds, 8/13/97, 111:23-112:3; McAllister WD, 76:16-18.
59. Defendants, through the CTR's Board of Directors, exercised control over the CTR research grant program throughout its existence by approving the total amount of funding for the grant program and, after the first few years, by selecting the CTR Scientific Directors and their staff. Zahn PD, Richardson v. Philip Morris, 12/16/98, 459:13-460:9; McAllister PD, United States v. Philip Morris, 5/23/02, 56:5-57:18; USX6390001-0400 at 0012 (US 89555); CTRMN003816-3835 (US 21147). In fact, Helmut Wakeham of Philip Morris complained to David Felton, a BATCo scientist, that finding a Scientific Director to succeed Little after he resigned "was in the hands of the lawyers committee" and the Tobacco Institute without consultation with CTR or company scientists. 10315968-5971 (US 26378); (US 26379); (US 63573).
2. Research Activities of TIRC/CTR
60. TIRC focused its energies and resources in two areas — public relations and scientific research. First, it served as a sophisticated public relations unit for Defendants, especially in relation to growing public concern about the risks of smoking, by repeatedly attacking scientific studies that demonstrated the harms of cigarette smoke and insisting on the notion of an "open question" regarding cigarette smoking and health. Second, it developed a scientific research program that focused on basic processes of disease rather than evaluating the risks and harms associated with smoking — the very subject that the industry had pledged to pursue through TIRC. Zahn PD, Richardson v. Philip Morris, 12/16/98, 318:16-319:1, 319:3, 325:3-12, 325:20-328:6, 336:15-337:11, 561:21-562:7; Brandt WD, 57:13-23; 82:21-83:8, 127:17-19; Sommers PD, Cipollone v. Liggett, 10/2/86, 73:12-16, 73:20-22, 74:2, 74:8-15. From the outset, the dual functions of TIRC were intertwined, with the scientific program of TIRC always subservient to the goals of public relations. Brandt WD, 57:8-11.
61. Defendants' denials of the link between smoking and disease kept away many excellent researchers. In an October 1969 memorandum to Ross R. Millhiser of Philip Morris, Helmut Wakeham, Vice President and Director of Research for Philip Morris, expressed concern that
the efforts of the tobacco industry through CTR and the American Medical Association have failed to involve the best investigators. At the beginning of our support of smoking and health research, this failure may have been connected with our consistent denial of the statistics and our continued assertion that there is nothing to the cigarette causation hypothesis.
1001609594-9595 (US 21437).
62. A year later, Wakeham again discussed CTR's strategy of frequent and public denials, in a December 1970 memorandum to Joseph Cullman, Chairman of Philip Morris and Chairman of the Executive Committee of the Tobacco Institute:
It has been stated that CTR is a program to find out the "truth about smoking and health." What is truth to one is false to another. CTR and the Industry have publicly and frequently denied what others find as "truth." Let's face it. We are interested in evidence which we believe denies the allegation that cigarette smoking causes cancer.
1000255938-5940 (US 20085).
63. Defendants, through TIRC/CTR and its public relations strategy, were especially effective in identifying and supporting skeptics of the link between smoking and disease. Skeptics were invited to join the Scientific Advisory Board of the TIRC; they and their home institutions were provided with research grants from the TIRC. Their views were effectively solicited and broadcast widely by TIRC and the Tobacco Institute. Brandt WD, 80:12-18.
64. TIRC/CTR funded research through a variety of mechanisms: grants, contracts, CTR Special Staff Services, and CTR Special Projects. ARU1130828-0904 (US 86773). See Section III(E)(2),infra for detailed discussion of CTR Special Projects.
65. Virtually none of the research funded by TIRC/CTR centered on immediate questions relating to carcinogenesis and tobacco that could resolve the question of the harms brought about by cigarette smoking. Although some TIRC/CTR-funded researchers explored alternative hypotheses, TIRC/CTR did not typically pursue direct research on cigarettes and disease. Rather than addressing the constituents in tobacco smoke and their demonstrated effect on the human body, TIRC/CTR directed the majority of its resources to alternative theories of the origins of cancer centering on genetic factors and environmental risks. The major thrust of TIRC/CTR was to emphasize that human cancers were complex processes, difficult to study and difficult to understand, and to focus on the "need for more research." Brandt WD, 82:10-12, 85:12-86:3, 120:20-121:11. Although research funded by the SAB was irrelevant to the immediate questions associated with tobacco smoking and health, it did "create the appearance of [Defendants] devoting substantial resources to the problem without the risk of funding further 'contrary evidence.'" Harris WD, 104:23-105:7.
66. Two of CTR's Scientific Directors, Harmon McAllister and Sheldon Sommers, confirmed that the basic research funded by CTR was not immediately relevant to smoking and health. McAllister stated that they funded "basic medical research on the etiology of diseases that have been epidemiologically linked to smoking. That's our global [sic] — that's the way we operate. Those are the sorts of applications we entertain." McAllister PD, Broin v. Philip Morris, 12/6/93, 46:2-16. Sommers stated that a CTR grant application's relevance to cigarette smoking and health was not the primary factor the SAB used in rating grant applications, but that "[s]cientific merit was of equal or of greater importance than relevance." Sommers PD, Cipollone v. Liggett, 10/2/86, 134:10-22, 135:4-6. Sommers was an SAB member from 1967 to 1989, SAB Chairman from 1970 to 1980, CTR Research Director from 1969 to 1972, and CTR Scientific Director from 1981 to 1987. Sommers PD, Galbraith v. Reynolds, 9/4/85, 10:12-25, 22:7-12, 23:22-24:16; Sommers PD, Rogers v. Reynolds, 12/17/85, 9:11-12, 13:14-18, 14:15-22; Sommers PD,Arch v. American, 7/14/97, 10:21-24, 11:9-24, 13:9-13, 16:14-21, 95:14-22; Sommers PD, Arch v. American, 7/15/97, 164:18-22.
67. During a four-week visit to the United States in 1958, the three British scientists who met with representatives of TIRC and TIRC's SAB, as well as representatives of American, Liggett, and Philip Morris, reported that
Liggett Meyers stayed out of TIRC originally because they doubted the sincerity of TIRC's motives and believed that the organization was too unwieldy to work efficiently. They remain convinced that their misgivings were justified. In their opinion TIRC has done little if anything constructive, the constantly reiterated 'not proven' statements in the face of mounting contrary evidence has thoroughly discredited TIRC, and the SAB of TIRC is supporting almost without exception projects which are not related directly to smoking and lung cancer.
TINY0003106-3116 (US 21369); 105408490-8499 at 8495 (US 21135), (US 76169); Brandt WD, 94:8-95:17.
68. After another visit to the United States in the fall of 1964, two different British scientists wrote in their report: "As we know, CTR supports only fundamental research of little relevance to present day problems." 1003119099-9135 (US 20152).
69. The Defendants knew that TIRC/CTR was funding research concerning cancer as a general issue, rather than the relationship of smoking to cancer. Brandt WD, 121:6-122:14. In January 1968, Addison Yeaman, B W Vice President and General Counsel, wrote:
Review of SAB's current grants indicates that a very sizable number of them are for projects in what might be called 'basic research' without specific orientation to the problem of the relationship of the use of tobacco to human health.
00552837-2839 at 2837 (US 22968).
70. In addition, Defendants appreciated the delays associated with the basic research approach. Janet Brown, outside counsel for American, explained CTR's strategy of undertaking only basic research funding, as opposed to funding questions directly related to tobacco and health to Cy Hetsko, Vice President and General Counsel for American, and Addison Yeaman, Vice President and General Counsel for B W, at a January 1968 meeting. The rationale was that basic research kept alive the Enterprise's open question argument on causation. Yeaman summarized Brown's position as:
First, we maintain the position that the existing evidence of a relationship between the use of tobacco and health is inadequate to justify research more closely related to tobacco, and
Secondly, that the study of the disease keeps constantly alive the argument that, until basic knowledge of the disease itself is further advanced, it is scientifically inappropriate to devote the major effort to tobacco.
68-262155-2157 (US 63527).
71. Geoffrey F. Todd, Executive Director of the Tobacco Research Council, a British organization equivalent to CTR (discussed further at Section III(I)(3), infra) made several visits to the United States, during which time he met with Defendants' representatives, attorneys, and scientists. After his 1973 trip, Todd wrote: "It was difficult to avoid the sad conclusion that C.T.R. has become a backwater of little significance in the world of smoking and health." 100226995-7033 (US 21134).
72. Throughout the existence of TIRC/CTR, representatives of the member companies and their attorneys were influential in its activities and research. Beginning in November 1971, CTR staff met semiannually with representatives of the member companies, usually the research directors and general counsel. The all-day meetings were designed to keep members of the Enterprise aware of the status of research funded by Defendants through TIRC/CTR. CTRMIN-MOM000016-0034 at 0018, 0022 (US 21170).
73. The Enterprise, through TIRC/CTR, sought out certain researchers and/or areas of research and solicited grant applications. Clarence Cook Little admitted that, seeing a line of work that showed promise, TIRC/CTR approached researchers and asked them, "Are any of you willing to try this if we provide your institution with money and you with help?" Little PD,Lartigue v. Reynolds, 10/5-6/60, 2721:21-2722:9, 2800:12-25; Lisanti PD, Small v. Lorillard, 3/31/98, 478:11-480:25.
74. Sheldon Sommers, CTR Scientific Director, stated that CTR frequently initiated research and suggested particular research for which it would make grants available. He said, "Yes. I go out all the time looking for opportunities and new ideas and investigators in various fields of biomedicine." Sommers PD,Rogers v. R.J. Reynolds, 12/17/85, 50:19-52:15, 52:22-53:2, 53:7-18; Sommers PD, Cipollone v. Liggett, 10/3/86, 181:15-23, 182:12-183:10; Sommers PD, Small v. R.J. Reynolds, 10/8/97, 176:18-177:11; 85760397-0397 (US 85998).
75. One of the reasons that Paul Kotin decided to resign from the SAB was that he was disturbed by "the going out and requesting the submission of grants, of applications for grants. And I felt this circumvented the original foundation for the SAB, at least for my membership in the SAB." Kotin PD, Falise v. American, 7/6/00, 67:10-69:24. Kotin had served on the TIRC SAB from 1954 to 1965. Kotin PD, Falise v. American, 7/6/00, 9:9-15. Another reason for Kotin's resignation was reported by visitors from the United Kingdom's Tobacco Research Council in October 1964:
The recent [CTR] Annual Report by Dr. Little was severely criticised by the U.S. Surgeon General at a Washington press conference. Dr. Kotin was also highly critical of it and talks privately of resigning from the S.A.B. if another report of the same nature is going to be published next year.
512678484-8499 (US 51653); 1003119099-9135 (US 20152), (US 35649*); 105407261-7329 (JE 34739); see also Kotin PD, Falise v. American, 7/6/00, 72:19-73:14; Kotin PD, Falise v. American, 7/7/00, 190:2-192:17, 197:13-198:2.
76. Similarly, John Craighead, who was an SAB member for approximately one year, was also disturbed by the nature of the CTR research program. Craighead resigned from the SAB in part because he felt that the research did not address the fundamental issues related to tobacco and because of the involvement of CTR Chairman Addison Yeaman into the direction of the CTR research program. Craighead PD, Butler v. Philip Morris, 11/13/96, 47:8-17, 84:13-86:3, 87:10-21, 88:6-10, 93:8-17, 107:19-25; Sommers PD, Small v R.J. Reynolds, 10/7/97, 10:24-11:12, 12:2-13:19.
77. Sheldon Sommers acknowledged the influence and control wielded by CTR Chairmen and Presidents over the TIRC/CTR research program. All TIRC/CTR Presidents were from tobacco companies, Sommers PT, Cipollone v. Liggett, 4/19/88, 8736:7-12, and, until 1991, each and every TIRC/CTR Chairman was a retired tobacco company executive. McAllister WD, 18:15-16. In September 1981, Sommers wrote that "new Chairman Hobbs [from RJR] is more interested in basic research so relevance to smoking and health is no longer a crucial matter in funding." 85760397 (US 85998); Sommers PD, Cipollone v. Liggett, 10/2/86, 136:8-14. Sommers also testified that, after Addison Yeaman (from B W) became CTR President and CEO, CTR began initiating more contracts because Yeaman believed that "the program was too diffuse and should be 'targeted.'" Sommers PD, Cipollone v. Liggett, 10/3/86, 297:16-298:2.
78. Following CTR's January 1975 annual meeting, the CTR staff was given more control over the grant and contract application process. According to the meeting minutes:
The Chairman stated that in the continued effort to bring maximum information to the Scientific Advisory Board preliminary investigation is being made by the Council's staff. . . . Following this, the proposals are then submitted for study by a subcommittee of the Board [SAB]. . . .
CTRMIN-MOM000070-0087 at 0071 (US 32618).
3. Public Relations Activities of TIRC/CTR
79. In December 1953, Timothy Hartnett, President of B W, summarized the crisis of the industry in the following terms:
But cancer research, while certainly getting our support, can be only half an answer. . . . The other side of the coin is public relations . . . [which] is basically a selling tool and the most astute selling may well be needed to get the industry out of this hole. . . . It isn't exaggeration that no public relations expert has ever been handed so real and yet so delicate a multi-million dollar problem. . . . Finally, one of the roughest hurdles which must be anticipated is how to handle significantly negative research results, if, as, and when they develop.
1005039779-9783 (US 20190); Brandt WD, 55:22-56:11.
80. From the outset, the dual functions of TIRC — public relations and scientific research — were intertwined. Ernest Pepples, in an internal B W letter dated April 4, 1978, acknowledged:
Originally, CTR was organized as a public relations effort. The industry told the world CTR would look at the diseases which were being associated with smoking. There was even a suggestion by our political spokesmen that if a harmful element turned up the industry would try to root it out.
680212421-2423 at 2422 (US 54024); 682338651-8653 (US 22899).
81. One name initially proposed for TIRC/CTR, the "Tobacco Industry Committee for Public Information," reflected its public relations purpose. However, John Hill of the public relations firm Hill Knowlton expressed skepticism that a public relations strategy that simply argued that the harms of cigarette smoking were "unproven" would succeed. Such a campaign might appear self-interested in the face of the serious health concerns being raised. Brandt WD, 54:11-19. As a result, Hill suggested that the industry should sponsor new research and use
[t]he word "research" . . . in the name of the Committee to establish the fact that the group will carry on or sponsor fundamental scientific research and will not be solely an information agency.
TLT0900422-0430 at 0424 (US 88169); TLT0901541-1545 at 1542 (US 87225); TLT0901546-1549 (US 88191).
82. A white paper titled "A Scientific Perspective on the Cigarette Controversy" was one of the first public relations projects undertaken by Hill Knowlton on behalf of its new client, TIRC. TLT0901688-1707 (US 88386). Hill Knowlton/TIRC undertook the project because Defendants felt it necessary and urgent
to present to leaders of public opinion the fact that there was no unanimity among scientists regarding the charges against cigarettes.
TLT0902041-2064 at 2054 (US 88360). The twenty-page booklet consisted of published quotations from some three dozen scientists and researchers who denied that there was any proof that linked smoking and lung cancer or who questioned the validity of statistical methods and the conclusions drawn from recent laboratory experiments with mice. TLT0901688-1707 (US 88386); TLT0902041-2064 at 2054 (US 88360), (US 88364); CTRMN004924-4927 (US 21152).
83. 205,000 copies of "A Scientific Perspective on the Cigarette Controversy" were released on April 14, 1954. CTRMN004924-4927 (US 21152). The booklet was sent to 176,800 doctors, as well as to deans of medical and dental colleges. TLT0902954-2955 (US 88388). The booklet with a press release went to a press distribution of 15,000, including: editors of daily and weekly newspapers, consumer magazines, veterans magazines, and medical and dental journals; news syndicate managers; business editors; editorial and science writers; radio and television commentators; news columnists; and Members of Congress. Id.; CTR-TIRC-MIN000001-0252 at 0006, 0007, 0010 (JD 093292); TLT0900159-0161 (US 87720).
84. In the June 1954 "Public Relations Report and Recommendations for Tobacco Industry Research Committee," Hill Knowlton described the success of its public relations efforts for TIRC:
Committee headquarters is steadily gaining recognition as a source of authoritative information on the subject of tobacco and health. The result is that news and magazine writers, columnists and commentators are turning to the Committee and its public relations counsel for more and more information.
TLT0901558-1563 at 1559 (US 88394); 514806129-6131 (US 20860).
85. Timothy Hartnett became the full-time chairman of TIRC on July 1, 1954, the day after his retirement as President of B W, and continued to advance the Defendants' "open question" position in that role. In the press release generated by Hill Knowlton announcing his appointment, Hartnett repeated the two commitments that TIRC had made in its Statement of Purpose and in its bylaws, i.e., (1) to carry on "comprehensive and objective scientific and statistical research to establish the facts," and (2) "report them to the public." After stating that the "tobacco industry is determined to find the answers to the public's questions about smoking and health," Hartnett continued:
It is an obligation of the Tobacco Industry Research Committee at this time to remind the public of [some] essential points: (1) There is no conclusive scientific proof of a link between smoking and cancer; (2) Medical research points to many possible causes of cancer; . . . (5) The millions of people who derive pleasure and satisfaction from smoking can be reassured that every scientific means will be used to get all the facts as soon as possible.
Brandt WD, 56:12-23; TLT0901831-1832 (US 88398).
86. Wilson Hoyt, who was initially a Hill Knowlton employee with no scientific background whatsoever, held positions as TIRC/CTR Executive Secretary, Executive Director, Executive Vice President, and President in his three decades with TIRC/CTR. Brandt WD, 58:23-59:2. In his 1955 administrative reports as TIRC Executive Secretary and Hill Knowlton executive, Hoyt affirmed the intertwined functions of public relations and research in TIRC's program. In his April 1955 report, he wrote:
Essentially, the major purposes of the TIRC are Research and Public Relations. Our job is to maintain a balance between the two, and to continue to build soundly so that at all times Research and Public Relations complement each other. In that way we intend to assume the mantle of leadership and, ultimately, to create a condition where the public will look to the TIRC for answers rather than to others.
CTR-TIRC-MIN000033-0052 (US 33006); Brandt WD, 83:9-23. In his January 1955 report, he wrote, "Within this framework we have furthered and coordinated the two major purposes for which the Committee was organized namely, the public relations phase and the research program." CTR-TIRC-MIN000001-0252 at 0018-0032 (JD 093292); CTRMN003816-3835 at 3826 (US 21147).
87. Despite Defendants' assertion that TIRC/CTR was solely an organization that funded independent research for the purpose of finding answers to smoking and health question, it served to a great extent as an effective public relations tool and information conduit. In a July 1963 memorandum, Addison Yeaman, General Counsel for B W, wrote:
The TIRC cannot, in my opinion, provide the vehicle for such research. It was conceived as a public relations gesture and (however undefiled the Scientific Advisory Board and its grants may be) it has functioned as a public relations operation.
689033412-3416 (US 22034); Brandt WD, 116:17-117:22; VXA2510190-0194 (US 63599); 2046754905-4909 (US 20477); Duffin PD, Cipollone v. Liggett, 1/23/86, 118:14-17.
88. Alexander Spears, Lorillard's Director of Research, in 1974 echoed the sentiments of Addison Yeaman when he explained:
Historically, the joint industry funded smoking and health research programs have not been selected against specific scientific goals, but rather for various purposes such as public relations, political relations, position for litigation, etc. Thus, it seems obvious that reviews of such programs for scientific relevance and merit in the smoking and health field are not likely to produce high ratings. In general, these programs have provided some buffer to the public and political attack of the industry, as well as background for litigious strategy.
01421596-1600 (US 20049); 83910516-0520 (US 55955); Brandt WD, 123:14-124:1.
89. In a 1975 speech to CTR members, Addison Yeaman gave his observations on the Council, noting, "It is my sober judgement that CTR, as it now operates is the greatest public relationsasset you have in the problem of tobacco and health." 11303014-3020 at 3017 (US 86005) (emphasis in original). See Section III(D)(2), infra for more discussion of public relations activities.
4. Publications and Public Statements of TIRC/CTR
a. TIRC/CTR Annual Reports
90. TIRC/CTR published and issued Annual Reports from 1956 through 1997. McAllister WD, 20:10-11. Copies of the TIRC/CTR Annual Reports were sent to libraries, colleges and universities, deans of medical schools, science and medical editors and writers for the popular press, CTR grant recipients, and members of professional medical societies. McAllister WD, 20:14-24; Glenn PD, Sontag v. U.S. Tobacco, 10/16/96, 34:4-23; Sommers PD, Rogers v. R.J. Reynolds, 12/17/85, 18:8-19.
91. The TIRC/CTR Annual Reports routinely included, in varying formats: abstracts of articles published by researchers funded by TIRC/CTR grants; brief statements regarding organization and policy; lists of SAB members and their affiliations; lists of current and former grantees; lists of ongoing and completed projects; and research summaries, commentaries, rationales, and observations. Zahn PD, Cipollone v. Liggett, 12/16/86, 79:4-13, 81:1-9; CTRAR000001-0013 (JD 090000); CTRAR000015-0040 (JD 090001); CTRAR000041-0073 (JD 090002); CTRAR000074-0109 (JD 090003); CTRAR000110-0147 (JD 090004); CTRAR000148-0185 (JD 090005); CTRAR000186-0216 (JD 090006); CTRAR000217-0253 (JD 090007); CTRAR000254-0293 (JD 090008); CTRAR000294-0334 (JD 090009); CTRAR000335-0376 (JD 090010); CTRAR000377-0433 (JD 090011); CTRAR000434-0477 (JD 090012); CTRAR000478-0526 (JD 090013); CTRAR000527-0580 (JD 090014); CTRAR000581-0629 (JD 090015); CTRAR000630-0675 (JD 090016); CTRAR000676-0717 (JD 090017); CTRAR000719-0763 (JD 090018); CTRAR000764-0807 (JD 090019); CTRAR000808-0861 (JD 090020); CTRAR000862-0916 (JD 090021); CTRAR000917-0974 (JD 090022); CTRAR000975-1036 (JD 090023); CTRAR001037-1097 (JD 090024); CTRAR001098-1172 (JD 090025); CTRAR001173-1246 (JD 090026); CTRAR001247-1355 (JD 090027); CTRAR001356-1451 (JD 090028); CTRAR001452-1547 (JD 090029); CTRAR001548-1649 (JD 090030); CTRAR001650-1767 (JD 090031); CTRAR001768-1880 (JD 090032); CTRAR001881-2003 (JD 090033); CTRAR002004-2149 (JD 090034); CTRAR002150-2287 (JD 090035); CTRAR002288-2465 (JD 090036); CTRAR002466-2619 (JD 090037); CTRAR002620-2784 (JD 090038); 70000302-0618 (JD 090039); 85865669-5692 (US 22954); 85865742-5804 (US 21082); 85865805-5873 (US 21083); 85865874-5946 (US 21084); 01141473-1541 (US 20039); 85866020-6080 (US 21085); 1002315412-5483 (US 20125); 1002315484-5561 (US 20126); 1002315562-5640 (US 20010); 1002315641-5722 (US 20011); 1002315723-5834 (US 20127); 501773418-3466 (US 20686); 1002315835-5920 (US 21800); 85865693-5741 (US 22237); 1005082487-2584 (US 20202); 1005082585-2690 (US 20203); 1005082691-2788 (US 20012); 2028556086-6177 (US 20428); 1002316312-6397 (US 20128); 1002316398-6485 (US 20129); 1002316486-6571 (US 20130); 1002316572-6677 (US 20131); 1002316678-6780 (US 20132).
92. From 1956 until 1993, TIRC/CTR public relations counsel Leonard Zahn was in charge of preparing and compiling the Annual Reports, making distribution recommendations, and drafting the Introduction section for some of them. Zahn PD, Cipollone v. Liggett, 12/18/86, 368:23-369:4, 369:10-370:14, 371:5-9, 371:11-372:8, 379:16-381:24, 382:17-21; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 41:22-45:12, 48:2-7, 49:6-17, 49:22-51:1, 51:14-21, 52:8-23; CTRMN015594-015613 (US 79903). In a December 1972 memo attached to his proposed outline for the next report, Zahn acknowledged that
[t]he research section of the CTR [Annual] Report is based on published articles by grantees and, unfortunately, not much directly related to tobacco appeared in the last 18 months.
CTRMN015614-015616 (US 79904).
93. The commentary in the Annual Reports uniformly challenged the hypothesis that smoking was linked to lung cancer and emphasized that data regarding smoking and health were controversial, contradictory, and inconclusive. For example:
• 1957 Report of the Scientific Director ("[S]ound medical and experimental knowledge of tobacco use is relatively limited, at times contradictory, and often conjectural rather than factual. . . . There is not known today any simple or quick way to answer the question of whether any one factor has a role in causing human lung cancer . . . no one has established that cigarette smoke, or any one of its known constituents, is cancer causing to man. . . . Members of the [TIRC SAB] Board take the general position that definitive conclusions or predictions of individual risks are unwarranted by the present imperfect state of knowledge in the complex field of lung cancer causation," and describing cancer as "this so-called constitutional disease.");
• 1958 Report of the Scientific Director ("[A] problem may well be obscured, and its solution delayed, by the soothing acceptance of an oversimplified and immature [tobacco theory] hypothesis. . . . The proponents of the tobacco theory have generated increasingly intensive and extensive propaganda. . . . As a result, a non-scientific atmosphere, conducive to prematurity, unbalance, and inadequacy of public judgement, has pervaded the whole field. . . . The prohibition concept discounts or ignores all considerations of smoking benefits in terms of pleasure, relaxation, relief of tension or other functions.");
• 1961 Report of the Scientific Director ("[T]hose who most actively promote this [smoking-lung cancer] hypothesis have consistently ignored or, at best, have minimized the fact that numerous directly relevant experiments either have failed to support the hypothesis or have provided only weak or uncertain data.");
• 1963-64 Report of the Scientific Director ("After 10 years the fact remains that knowledge is insufficient either to provide adequate proof of any hypothesis or to define the basic mechanisms of health and disease with which we are concerned.");
• 1964-65 Report of the Scientific Director ("[E]vidence to support the thesis that cigarettes exercise a direct carcinogenic effect on man has not been forthcoming.");
• 1978 Report of the Council for Tobacco Research-U.S.A., Inc. ("[T]he complex etiology of these constitutional diseases [cancer, heart disease, chronic pulmonary ailments] remains unraveled. These diseases have been associated statistically with smoking, but such associations are not proof of cause and effect.").
CTRAR000015-0040 (JD 090001); 501773418-3466 (US 20686); Brandt WD, 86:19-87:20; 85865693-5741 (US 22237); CTRAR000041-0073 (JD 090002); 85865742-5804 (US 21082); CTRAR000148-0185 (JD 090005); 01141473-1541 (US 20039); CTRAR000217-0253 (JD 090007); 1002315412-5483 (US 20125); CTRAR000254-0293 (JD 090008); 1002315484-5561 (US 20126); CTRAR000808-0861 (JD 090020); 1002316572-6677 (US 20131).
94. For more than two decades, the commentaries in the Annual Reports also discounted the conclusions reached by the public health community and the Surgeon General linking smoking and disease and simply repeated the "open question" position of the tobacco industry. 515709297-9340 (US 20866); see Section (V)(A),infra. Robert Hockett, Associate Scientific Director at the Council for Tobacco Research — USA, which evaluated the content of the Annual Reports for the industry wrote: "The aim of [Little's] summations, much too apparently, seems to be to protect smoking." MNAT00515749-5762 at 5752 (US 63570); Brandt WD, 122:15-123:13; Lisanti PD, Small v. Lorillard, 3/31/98, 454:5-14.
95. A June 20, 1984 memorandum from Wendell Stone, attorney at Shook, Hardy Bacon, during the Cipollone litigation, acknowledged the bias of CTR/TIRC's annual reports. Stone commented that the reports, especially the early ones, "contained lengthy commentary . . . which read much like industry position papers." Stone also concluded:
The TIRC/CTR commentary on research did not always seem to conform fully to the positions taken or implied in the abstract. For example, with respect to the Leuchtenberger inhalation research, the abstracts in the annual reports tend to give the impression that these researchers did in fact have a good animal model of lung cancer production by smoke inhalation. However, commentary on this research in the front material to the reports tended to argue away the relevance of the results.
515709297-515709340 (US 20866).
b. TIRC/CTR Newsletters
96. From October 1957 to at least 1968, first TIRC and then the Tobacco Institute published a newsletter variously named Tobacco and Health, Research Reports on Tobacco and Health, and Reports on Tobacco and Health Research. The newsletter was published two or three times a year; contained articles that disputed the relationship between smoking and disease; criticized research supporting such a relationship; and emphasized that differing opinions existed regarding tobacco use and health. Brandt WD, 84:10-85:9; TIMN0000713-0714 (US 21264); TIKU000006665-6668 (US 86007); TIMN0000719-0722 (US 86011); TIMN0000723-0726 (US 86012); TIMN0000727-0728 (US 86013); TIMN0000733-0734 (US 86014*); TIMN0000736-0738 (US 86015*); TIMN0000739-0744 (US 86016); TIMN0000745-0747 (US 86017); TIMN0000748-0750 (US 86045); TIMN0000751-0756 (US 86018); TIMN0000757-0762 (US 86019); TIMN0000763-0774 (US 86020); TIMN0000775-0780 (US 86021); TIMN0000781-0784 (US 86022); TIMN0000785-0788 (US 86023); TIMN0000789-0792 (US 86024); TIMN0000793-0796 (US 86025); TIMN0000797-0800 (US 86026); TIMN0000801-0804 (US 86027); TIMN0000805-0808 (US 86028); TIMN0000809-0812 (US 86029); TIMN0123324-3327 (US 21282); TIMN0130693-0696 (US 62844); TIMN0130707-0710 (US 62845); TIMN0130728-0731 (US 62847); TIMN0130802-0803 (US 62849); TIMN0130816-0817 (US 62851); TIMN0000713-0714 (US 21264); TIMN0123276-3279 (US 77059); TIMN0123304-3307 (US 77060); TIMN0130687-0690 (US 77068); TIMN0130742-0745 (US 77069); TIMN0130749-0752 (US 77070); TIMN0130778-0781 (US 77071); TITX0006679-6682 (US 77111); 502367882-7887 (US 49132); TIMN0123314-3317 (US 21345); TITX0006691-6694 (US 86044); TIMN0000748-0750 (US 86045); TIMN0130810-0811 (US 62850); TIMN0130735-0738 (US 62848); TIKU000006559-6562 (US 86048); TIKU000006545-6548 (US 86050); TIMN0130756-0761 (US 86051); TIMN0130714-0717 (US 62 846); TIKU000006538-6541 (US 86052); 511018410-8413 (US 22459); MNAT00515648-5651 (US 72185).
97. Initially, TIRC was to publish the Tobacco and Health newsletter. This provoked a strong reaction from members of the Scientific Advisory Board who received advance copies of the first issue. In a letter to SAB Chairman Clarence Little, SAB member McKeen Cattell classified the new publication as "obviously propaganda material" and expressed serious concern about the effect it would have on the SAB's program. 701235030-5030 (US 31474). Julius Comroe, another SAB member, advised that the SAB and TIRC should not be identified with the Tobacco and Health publication. 70123533-3533 (JD 093608); 70123536-3536 (JD 093610).
98. In response to these concerns, the Tobacco Information Committee, a subcommittee of TIRC, was formed in late 1957, from what was previously known as the TIRC Public Relations Committee. The committee was comprised of public relations employees from the companies and public relations counsel representing the companies, and one of its principal functions was to publish the Tobacco and Health newsletter. The first two issues of the Tobacco and Health newsletter were issued under the name of the Tobacco Information Committee and financed from the TIRC budget. 70123534-3534 (JD 093609); CTR-TIRC-MIN000001-0252 at 0125-0127 (JD 093292); CTRMN039046-9106 at 9056 (JD 092825).
99. In 1958, after the first two issues were published, the Tobacco Institute assumed responsibility for publishing the Tobacco and Health newsletter on behalf of Defendants. Even when published by the Tobacco Institute, there was close coordination with TIRC, and most editorial material derived from TIRC annual reports, the TIRC library, and other materials available through TIRC. CTR-TIRC-MIN000001-0252 at 0154, 0162 (JD 093292).
100. A 1968 Tobacco and Health Research procedural memorandum from Hill Knowlton to William Kloepfer, Tobacco Institute Vice President, admitted that "[m]ost papers used in TH R come from the Council for Tobacco Research Library through advance distribution of Ken Austin of CTR." Zahn PD, Cipollone v. Liggett, 12/18/86, 344:9-22.
101. The Tobacco and Health newsletter was a public relations vehicle used to influence health professionals. Its primary purpose was to present directly to the medical and scientific communities research material related to tobacco and health — material that frequently did not deal with tobacco but suggested other causes of cancer, such as viruses, air pollution, and previous chest ailments. Its secondary purpose was to attract the attention of the lay press to studies that challenged the validity of research linking cancer to cigarette use. A news release with each issue attracted press attention; one or both of the major wire services usually carried stories. In order to combat the effects of the Tobacco and Health newsletter, four non-governmental health agencies began issuing a Medical Bulletin on Tobacco in 1962. TIMN0081443-1457 at 1443-1444 (US 21307); Brandt WD, 84:10-85:9.
102. In 1962, circulation of the newsletter reached 520,000, with about 315,000 copies going to doctors, dentists, and medical schools, and the rest going to writers and editors, public opinion leaders, all members of Congress, brokerage houses, tobacco groups, farm and supplier groups, industry groups, and member companies. Publication of research results helped make news and was coordinated with other publicity efforts. TIMN0070640-0656 at 0643 (US 21299); TIMN0070657-0674 at 0661 (US 22983); CTRMN015416-5435 at 5416-5417, 5421 (US 79889); CTRMN015485-5502 at 5489 (US 79893); CTRMN015412-5415 at 5415 (US 79888).
103. In a procedural memorandum, Hill Knowlton delineated specific criteria for selecting reports to be included in Tobacco and Health. The memorandum stated that research did not have to always deal specifically with tobacco; for example, research which suggested that other factors may cause diseases associated with smoking should be included; "[t]he most important type of story is that which casts doubt on the cause and effect theory of disease and smoking." Brandt WD, 119:7-21; TIMN00721488-1491 (US 63575); (US 21302), (US 21614); CTRPUBLICSTMT001270-1281 (US 32646).
c. TIRC/CTR Press Releases and Other Public Statements
104. TIRC/CTR, with the assistance of its public relations counsel Hill Knowlton, and later Leonard Zahn, was remarkably effective in making certain that the Defendants' position of "no proof" and the need for "more research" reached the national media, and thus the public. Typically, news accounts of new medical findings would be accompanied by a press release or statement from TIRC/CTR insisting that "nothing new" had been found and the studies were "merely" statistical. Brandt WD, 78:18-79:2, 119:22-120:15. Moreover, TIRC/CTR was effective in mobilizing a relatively small group of skeptics and amplifying their views as if they were equal in number and significance to an emerging scientific consensus about the harms of smoking (discussed in detail at Section V(A)(3)(c), infra). Brandt WD, 79:6-8, 90:20-92:5; see, e.g., 500518759-8761 (US 20636) (1958 year-end Hill Knowlton/TIRC press release in which TIRC Chairman Timothy Hartnett asserts that "scientists of high professional standing have produced additional evidence and opinions that challenge the validity of broad charges against tobacco use"); 503283464-3467 (US 22981) (TIRC's Clarence Cook Little's November 1959 response to Surgeon General Burney's statement that begins, "Today, more than ever before, scientific evidence is accumulating that conflicts with or fails to support the tobacco-smoking theories of lung cancer."); 500518873-8875 (US 63601) (1960 Hill Knowlton/TIRC press release quoting Little and titled "New Evidence Shows Complexities of Lung Cancer, Scientist [Little] Says"); 00552685-2690 (US 47724) (1970 Leonard Zahn/CTR press release quoting Little that begins, "A considerable number of studies by independent scientists raise questions as to whether smoking has actually been shown to be a health hazard"); 60028206-8210 (US 53301); 670307882-7891 (US 21867); 670307882-7883 (US 63574) (1969 CTR press release quoting Little that begins, "The scientist [Little] who has been associated with more research in tobacco and health than any other person declared today that 'there is no demonstrated causal relationship between smoking and any disease. The gaps in knowledge are so great[.]'"); CTRPUBLICSTMT001241-1545 at 1265 (JD 043276) (1970 Leonard Zahn/CTR press release quoting Little on genetic and environmental factor theories); 500518873-8875 (US 20635); 500015901-5905 (US 47778).
105. The relationship between TIRC/CTR and Hill Knowlton remained close for many years. Because TIRC had no headquarters and no staff when it was formed, Hill Knowlton provided a working staff and temporary office space and assigned one of its experienced executives, Wilson Hoyt, to serve as Executive Secretary for the TIRC. In early 1956, the TIRC Executive Committee approved the relocation of TIRC's offices to the building where Hill Knowlton's offices were located. At their January 29, 1964 meeting, the TIRC Executive Committee agreed to immediately transfer seven Hill Knowlton employees, including Hoyt, to TIRC. TLT0902041-2064 (US 88364); 93218985-8986 (US 21116); TLT0900114-0115 (US 88402); CTRMN003816-3835 at 3825 (US 21147).
106. Even after the Tobacco Institute (discussed further infra at Section III(D)) was created in 1958, TIRC/CTR continued its public relations activities with the assistance of public relations counsel Hill Knowlton, and later Leonard Zahn. 93218985-8986 (US 21116); 70057072-7073 (US 21983); 512678484-8499 (US 51653).
107. As noted earlier, Hill Knowlton gave advice and direction to the leaders of the Enterprise even before its actual formation in December of 1953. Thereafter, it provided public relations services for TIRC/CTR from 1954 until 1964. It provided the same services for the Tobacco Institute from 1958 until 1968, in 1979, and again from 1987 through 1991. USX6390001-0400 at 0012 (US 89555). See also Adams PD, United States v. Philip Morris, 6/19/02, 495:5-17. Leonard Zahn was an integral part of TIRC/CTR's public relations program — first as an employee of Hill Knowlton assigned to the TIRC account, and later, on his own, as primary public relations counsel for CTR. Leonard Zahn was hired by Hill Knowlton in 1955 to work on the TIRC account. In 1969, Zahn resigned from Hill Knowlton; formed his own company, Leonard Zahn Associates; and was appointed CTR's public relations counsel. Zahn PD, Cipollone v. Liggett, 12/16/86, 9:19-21, 10:4-8, 43:17-20, 44:12-20, 45:15-18, 46:5-7, 16-17; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 48:15-22, 58:8-17, 59:9-17; Zahn PD, Richardson v. Philip Morris, 12/1/98, 16:9-17:8, 21:21-22:6, 25:13-26:16; Zahn PD, Richardson v. Philip Morris, 12/16/98, 308:7-14. Zahn Associates served as CTR public relations counsel through 1993 and was paid $127,053 by CTR that last year. CTRMIN-BD 000001-0303 at 0277, 0283 (JD 093208). During his decades with TIRC/CTR, Zahn attended and reported on scientific conferences, attended SAB meetings, organized press conferences, served as liaison between CTR and the Tobacco Institute, prepared articles, and drafted press releases and public statements as well as the annual reports for CTR. Zahn PD, Richardson v. Philip Morris, 12/16/98, 308:7-14; McAllister WD, 188:20-189:5; Kornegay PD, Cipollone v. Liggett, 12/5/84, 529:4-530:10; 70124410-4414 (US 31512); CTR98CONG00070-0070 (US 25897); CTRMN015360-5360 (US 79868); CTRMN015361-5361 (US 79869); CTRMN015362-5365 (US 79870); CTRMN015370-5371 (US 79873); CTRMN015380-5381 (U. S. Ex. 79877); CTRMNZN475-477 (US 21160).
D. Tobacco Institute
1. Formation of the Tobacco Institute
108. As time passed, TIRC faced increasing difficulty reconciling its dual functions of public relations and research. On the one hand some SAB members had always wanted a more distinct separation between the SAB and TIRC. As early as October 1954, the SAB
recognized the need for a more affirmative informational approach by the TIRC, and expressed the feeling that it would be in order for the Committee [TIRC] to take more positive action on its own through Mr. Hartnett as chairman without, at the same time, drawing the Advisory Board or the research program into such utterances.
CTRMN004227-4232 at 4230 (US 86073).
109. In addition, there was growing concern about TIRC making partisan arguments on behalf of the industry while it was sponsoring research that the industry wanted to be perceived as objective. Brandt WD, 90:4-9; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 98:25-99:16; BWX0011174-1187 at 1176 (US 21773). In 1958, a SAB member wrote a letter to those attending the February SAB meeting objecting to public statements which had been made by Clarence Cook Little, contending that when Little spoke as Scientific Director of the TIRC, the inference was that Little was also speaking for the SAB. CTRMN039046-9106 at 9055 (JD 092825). The dissenting SAB member indicated that, unless a more distinct separation could be established between the SAB and TIRC, he felt he could not continue to serve on the SAB. Two other SAB members joined in this statement. CTR-TIRC-MIN000001-0252 at 0142 (JD 093292); 681879254-9715 at 9391 (US 21020). According to SAB member Paul Kotin, members of the TIRC SAB made quite clear "the inadvisability and downright unacceptability" of the SAB or its members being quoted in TIRC press releases and public statements concerning the smoking and health controversy. Kotin PD, Falise v. American Tobacco, 10/31/00, 348:25-352:14.
110. On the other hand, some members of the Enterprise wanted an organization that would take a much more aggressive public relations stance to counter arguments linking smoking and disease and to oppose proposed labeling legislation facing the industry. BBAT030581-0582 (US 22058); MNAT00724279-4280 (US 22996); TLT0900385-0389 (US 88209).
111. Defendants finally decided to create a separate non-profit corporation, the Tobacco Institute ("TI"), which would be responsible for more aggressive public relations and political lobbying and would not have the limitations associated with TIRC. 93481139-1140 (US 21117); Brandt WD, 88:20-90:3.
112. The creation of a separate organization was felt to be
a way of keeping Little inviolate and untainted in his ivory tower while giving a new group a little more freedom of action in the public relations field. . . . [T]he legal people were especially interested in this argument because they thought of Dr. Little as a potential witness and were not anxious to have him making public statements which could compromise his usefulness to them in court.
Brandt WD, 90:4-19; BWX0011174-1187 at 1176 (US 21773).
113. In January 1958, twelve manufacturers of cigarettes, smoking and chewing tobacco, and snuff jointly announced the formation of the Tobacco Institute. The companies forming the Tobacco Institute included Defendants American, B W, Liggett, Lorillard, Philip Morris, and Reynolds. 93481139-1140 (US 21117).
114. The Tobacco Institute was incorporated in New York State, TIMN0010606-0609 (US 21291), TIMN0011255-1260 (US 22250), and the Tobacco Institute bylaws were adopted at the meeting of the incorporators and members held on January 29, 1958. TIMN0005705-5712 at 5706 (US 21290); 1005136918-6933 (US 20223).
115. The Tobacco Institute was a trade association. According to its 1958 Certificate of Incorporation, the Tobacco Institute was formed
to promote a better understanding by the public of the tobacco industry and its place in the national economy; to cooperate with governmental agencies and public officials with reference to the tobacco industry; to collect and disseminate information relating to the use of tobacco; to collect and disseminate scientific and medical material relating to tobacco; to collect and disseminate information relating to the tobacco industry published or released by any governmental agency, federal or state, or derived from other sources independent of the industry; to collect and disseminate information relating to legislative and administrative developments, federal or state, affecting the tobacco industry; to promote public good will.
(no bates) (US 21291); see also (no bates) (US 87552).
116. The Tobacco Institute had a Board of Directors "composed in a fashion similar to that of the Council for Tobacco Research" and an Executive Committee consisting of the chief executive officers of the major tobacco companies. 044227839-7844 (US 20066). That Committee, "[a]s a practical matter . . . for many years" was run by "a committee of four lawyers, one from each of the major member tobacco companies." Id.
117. The Tobacco Institute Board of Directors held its first meeting on January 30, 1958. Former Congressman James Richards of South Carolina was elected President and Executive Director; Joseph F. Cullman, III, President of Philip Morris, was elected Treasurer; and Chandler Kibbe, Vice President of Philip Morris, was elected Assistant Treasurer. Among those elected to membership at this meeting were American, Liggett, Lorillard, Philip Morris, and Reynolds. An Executive Committee was established, and its members were Cullman; Benjamin Few, President of Liggett; Bowman Gray, Chairman of Reynolds; Lewis Gruber, President and Chairman of Lorillard; and J. Whitney Peterson, President of United States Tobacco. TIMN0005705-5712 at 5705, 5707-5711 (US 21290).
118. At the first meeting of its Board of Directors, Hill Knowlton was appointed Tobacco Institute public relations counsel, and Covington Burling was appointed Tobacco Institute legal counsel. Id.; USX6390001-0400 at 0012 (US 89555). Both were to play a major role in setting the priorities for and guiding the future operation of the Tobacco Institute.
119. In addition to Covington Burling, the Tobacco Institute also had a relationship with Shook, Hardy Bacon. A May 1982 letter from William Shinn of Shook, Hardy Bacon, to Robert Sachs, Counsel for B W, and Arthur Stevens, General Counsel for Lorillard, described this relationship. Shinn divided the law firm's activities into four categories: Tobacco Institute Clearance Procedures, Tobacco Institute Committees, Science and Research, and General. Clearance procedures were defined as a number of standard operating procedures in examining Tobacco Institute materials with potential smoking and health overtones. Tobacco Institute Committee work involved attending meetings of the Committee of Counsel, Communications Committee, and Executive Committee. See Section III(D)(4), infra for detailed discussion of Tobacco Institute Committees. Science and Research work primarily concerned the development of special projects and industry witnesses. General work was a catchall category with activities ranging from literature review, for the purposes of identifying possible expert witnesses, to appearances at the Tobacco Institute's College of Tobacco Knowledge (discussed in detail at Section III(D)(5),infra). 521043046-3050 (US 20891); 2015035387-5391 (US 36651).
120. Members of the Enterprise convened regularly between 1958 and 1998 at the meetings of the Tobacco Institute's Board of Directors. At these meetings, representatives from the Enterprise discussed and passed resolutions regarding the Tobacco Institute's budget, programs and projects of the various divisions, election of officers, payment of dues, and amendments to the bylaws. TIMN0005705-5712 (US 21290); LG2000457-0461 (US 21876); 2025856215-6225 (US 23769); TIMN0006140-6146 (US 62658); TIMN0006405-6411 (US 62663); TIMN0012917-2923 (US 62779); TIOK0004462-4466 (US 63020); TIMN0017710-7711 (US 87550); TIMN0012893-2900 (US 88241); TIMN0006140-6146 (US 88243); TIMN0012951-2955 (US 88244); TIMN0012974-2980 (US 88245); TIMN0012995-3000 (US 88246); TIMN0013001-3010 (US 88247); TIMN0006405-6411 (US 88248); TIMN0013203-3213 (US 88249); TIMN0014400-4410 (US 88250); TIMN0012963-2973 (US 88321); Stevens WD, 3:21-4:2, 4:14-23, 8:4-14, 17:14-19; see also Kornegay PD, Small v. Lorillard, 11/18/97, 36:11-19.
121. Although the membership fluctuated during the existence of the Tobacco Institute, all Defendants (except BATCo, CTR, and the Tobacco Institute itself) created, agreed to fund, and/or did jointly fund the Tobacco Institute over the years. TIFL0020285-0311 at 0297-0305 (JD 080429). From 1958 through 1999, payments to the Tobacco Institute from Defendants amounted to more than $618,432,000, including: $161,505,876 from Philip Morris; $1,848,530 from Liggett; $110,298,387 from Reynolds; $29,195,668 from Lorillard; $15,933,769 from B W; and $19,146,216 from American. ARG0333104-3192 at 3175-3176 (US 75555); ARU5856402-6406 at 6403-6406 (US 75925); USX6400001-0527 at 0134-0135, 0223-0225, 0344-0346 (US 89561) (Defendants' Responses to Interrogatory No. 25).
122. Lorillard was not a member of the Tobacco Institute from 1968 to 1971. TIFL0020285-0311 at 0299-0305 (JD 080429). However, even during its non-membership, Lorillard it continued to "receive the releases and other information issued by the Institute," attended meetings of the lawyers of all the major companies at the Institute's offices, and was "kept apprised of the Institute's activities." 044227839-7844 (US 20066).
123. Executives of Defendant Philip Morris Companies attended and participated in meetings of the Tobacco Institute Board of Directors and the Executive Committee of the Board of Directors. These executives included Thomas Ahrensfeld, Senior Vice President and General Counsel; David Greenberg, Vice President; Kathleen Linehan, Vice President Government Affairs; Howard Liebengood, Vice President; and Steve Parrish, Senior Vice President. 2025856215-6225 (US 23769); 2021266946-6951 (US 26055); 87718289-8294 (US 32068); 980166160-6167 (US 32464); 521500132-0136 (US 52769); TI16760371-0372 (US 62461); TIMN0014390-4393 (US 62782); TIMN0014955-4960 (US 62784); 2025856068-6073 (US 86509); 2023723951-3955 (US 86510); TIMN0017710-7711 (US 87550); TIMN0013651-3655 (US 88302); TIMN0013656-3659 (US 88303); TIMN0014418-4425 (US 88304); TIMN0017720-7722 (US 88305); TIMN0017725-7729 (US 88306); TIMN0017731-7736 (US 88307); TIMN0018436-8439 (US 88308); TIMN0018451-8455 (US 88309); TIMN0018462-8466 (US 88310); TIMN0018590-8593 (US 88311); TIMN0019234-9239 (US 88312); TIMN0013203-3213 (US 88249); TIMN0014400-4410 (US 88250); TIMN0010629-0629 (US 88252).
124. The Tobacco Institute's amended bylaws created two classes of membership. Class A members were the cigarette manufacturers (those members who as of the date of any election of directors would be subject to additional dues assessment per Article III, Section 1 of the bylaws). Class A members would be entitled to elect twice the number of directors as there were Class A members. Members not subject to such assessment would be entitled to elect the same number of directors as there were Class B members. In addition, the members determined that the chief executive of each member company would be designated to serve on the Tobacco Institute Executive Committee. LG20000457-0461 (US 86081); TIMN451429-1435 (US 87551); 2021266019-6028 at 6019 (US 26736).
125. The primary functions of the Tobacco Institute included: advancing — through press releases, advertisements, publications, and other public statements — the Enterprise's primary position that there were scientific and medical doubts concerning the relationship between smoking and disease; disputing statements from health organizations about smoking and disease, and later about second hand smoke and disease; using the results of TIRC/CTR research projects and other industry-sponsored research projects to question the charges against smoking, to emphasize the complexities of those diseases with which smoking has been statistically associated, and to reassure the public that the industry was actively investigating the issues; denying that cigarette smoking was addictive; minimizing the difficulties of quitting smoking; and denying that the industry marketed to youth. USX6390001-0400 (US 89555).
126. In 1958, when the Tobacco Institute was created, Hill Knowlton secured the account to handle its public relations. Brandt WD, 52:8-9. Two of the Hill Knowlton employees assigned to handle the new Tobacco Institute account were Leonard Zahn and Carl Thompson, who were also handling the TIRC account. Zahn PD,Cipollone v. Liggett, 12/16/86, 85:16-86:20. One of four public relations objectives in Hill Knowlton's March 1958 Recommendations to the Tobacco Institute was: "To create a better public understanding of facts regarding tobacco use and health, and of the contribution the industry is making to efforts of science to find the answers to health questions." CTRMN015402-5408 at 5402-5403 (US 79886).
127. A 1966 document titled "The 'Mission' of the President of the Tobacco Institute" explained that, to meet its objectives, "the full resources of the Institute must be directed toward a consistent and positive program to gain public exposure to research results and scientific opinions that question the charges against smoking and that point up the complexities of those diseases with which smoking has been statistically associated." 502645038S-5038Z (US 23053).
128. In a January 1968 memorandum to Earle Clements, Vice President William Kloepfer, who was responsible for public affairs, set forth what was to be the guiding public relations policy for the Tobacco Institute: "to attempt to increase substantially public awareness of the cigarette controversy; putting it another way, to make a greater portion of the public aware that widespread indictment of cigarettes as a cause of poor health does not amount to conviction." CTRMN015575-5593 (US 79902).
129. However, in an April 1968 memorandum to Earle Clements, President of the Tobacco Institute, William Kloepfer, expressed concern that the industry's strategy of constant and consistent denial of smoking's harm was untenable. He wrote: "Our basic position in the cigarette controversy is subject to the charge, and maybe subject to a finding, that we are making false and misleading statements to promote the sale of cigarettes." VXA2511046-1048 (US 63576); Brandt WD, 117:23-119:6; 1005112459-2461 (US 20213).
2. Relationship Between the Tobacco Institute and TIRC/CTR
130. Creation of the Tobacco Institute did not end TIRC/CTR's public relations activities. Rather, it marked the beginning of a joint public relations effort, between CTR, the Tobacco Institute, and their overlapping Defendant-members in which the scientific and information functions of TIRC/CTR were used by the Tobacco Institute in its public relations activities, although there was never a totally precise division of labor between TIRC/CTR and the Tobacco Industry. Brandt WD, 89:23-90:3.
131. During the SAB's February 14-15, 1958 meeting, SAB Chairman Little asked TIRC Chairman Timothy Hartnett about the newly-formed Tobacco Institute, its purposes, and its relationship, if any, to TIRC. Hartnett explained that the Tobacco Institute was a separate entity and that its formation did not change or alter in any respect TIRC, its objectives, or its functions. He told the SAB members that it had become apparent, during the 1957 congressional hearings before the Blatnik Committee which had addressed the disclosure of tar and nicotine yields in advertising, that the tobacco industry needed to have one spokesman, rather than someone from each tobacco company, represent it at various times and places. CTRMIN-SAB000001-1061 at 0114 (JD 090960); 681879254-9715 at 9391 (US 21020); see also Chilcote PD, Minnesota v. Philip Morris, 9/18/97, 27:5-28:6, 30:16-20.
132. TIRC Chairman Hartnett also informed the SAB members at that same meeting that Hill Knowlton was acting as public relations counsel for both TIRC and the Tobacco Institute and "pointed out the desirability of this from both organizations' standpoint." CTRMIN-SAB000001-1061, 70011735-1757 at 0114 (JD 090960); see also Zahn PD, Cipollone v. Liggett, 12/16/86, 85:16-86:20.
133. At the July 1958 meeting of the Tobacco Institute Executive Committee, Chairman Bowman Gray of Reynolds reported that the respective functions of the Tobacco Institute and TIRC had been discussed at length, and announced "a tentative decision to let the matter of the respective functions of the two organizations (the Tobacco Institute and the TIRC) be decided on a case by case basis under the guidance of public relations counsel," Hill Knowlton. 04209323-9326 at 9323 (US 47370); 681879254-9715 at 9391-9392 (US 21020).
134. Defendants expected the Tobacco Institute and TIRC/CTR to act in coordination when taking a position on specific news stories involving tobacco and health. In a February 1958 letter to John Hill of Hill Knowlton, Paul Hahn, President of American, wrote, "In the present state of evidence, the position of the Institute should be compatible with that of TIRC and SAB." TLT0900385-0389 at 0387 (US 88209).
135. Hill Knowlton understood that
[c]omment from TIRC for the press remains an effective way to meet anti-tobacco publicity efforts and emphasizes the multiple factors that should be considered. This, of course, is complemented with a continuing program of supplying information to give editors and writers a balanced perspective on questions of tobacco and health.
HT0145148-5150 (US 21177).
136. Hill Knowlton worked aggressively on behalf of both its clients, TIRC and the Tobacco Institute, to influence the media and ensure that the position and interests of the industry regarding smoking and health were well represented to journalists, broadcast reporters and magazine writers. Hill Knowlton staff carefully documented their interventions, and their many successes. Brandt WD, 59:4-7, 131:18-132:1.
137. For example, Hill Knowlton, having anticipated the appearance of an article by United States Surgeon General Leroy E. Burney in the November 1959 Journal of the American Medical Association, VXA2150046-0054 (US 63608), learned of its contents and provided the press, in advance of publication, with statements from both TIRC and Tobacco Institute representatives attacking the Surgeon General's assessment of the scientific evidence linking cigarettes to lung cancer. Brandt WD, 92:17-94:7; TIOK0000477-0477 (US 22720) (Tobacco Institute President James Richards); 503283464-3467 (US 22981) (TIRC Scientific Director Clarence Cook Little); HT0145148-5150 (US 21177); TIMN0110091-0091 (US 21319).
138. TIRC Chairman Timothy Hartnett reported to TIRC members in 1960 that:
The staff of TIRC is constantly in touch with Hill Knowlton, and consults on every phase of activity relating to health matters. For example, it provides speakers for platforms, helps analyze both scientific papers and charges against smoking which appear in the public press, and consults on statements which are issued to inform the public.
CTR-TIRC-MIN000174-0186 at 0184 (US 33016); CTR-TIRC-MIN000001-000252 at 0184 (JD 093292); 681879254-9715 at 9393 (US 21020).
139. In the 1970s, Defendants discussed the need for even closer cooperation between CTR and the Tobacco Institute. William Kloepfer and Fred Panzer, Tobacco Institute Vice Presidents, proposed specific guidelines to assist CTR Chairman Henry Ramm select a new Scientific Director for CTR. TIMN0004138-4141 (US 87588). The Tobacco Institute Executive Committee directed Tobacco Institute President Horace Kornegay to meet with Henry Ramm to discuss "closer cooperation between the Institute and the Council for Tobacco Research." Kornegay reported, at the April 2, 1973 meeting of the Tobacco Institute membership and Board of Directors, that "CTR did desire closer cooperation with the Institute and that the scientific personnel of the Institute would be invited to attend the May 15, 1973 CTR meeting in New York." LG2000457-0461 at 0459 (US 21876).
140. After four months as CTR President, Addison Yeaman, chaired his first meeting of the CTR membership on December 10, 1975. He told the members that, "all the resources [of CTR], all the knowledge [of CTR], all the help that CTR can give, should be available to the lawyers, to the Tobacco Institute, and to any other of the troops in the field," and that CTR should be independent but "independent within the policies set down by the membership." 11303014-3020 (US 86005); 682631405-1421 (US 21025).
141. In its press releases, advertisements, brochures, and other materials, the Tobacco Institute publicized the substance of TIRC/CTR research and the aggregate amount of the funds spent, as well as the amounts contributed by the industry in order to influence the public's perception of the industry's concern about cigarette smoking and health. Duffin PD, Cipollone v. Liggett, 1/23/86, 108:15-20; see, e.g., 502644592-4616 at 4615-4616 (US 20703); 2015046793-6839 at 6828 (US 25526).
142. A 1970 Tobacco Institute ad in the Washington Post discussed CTR grants totaling over $17 million under the heading "After millions of dollars and over 20 years of research: The question about smoking and health is still a question." TIMN0081352 (US 21305); 500004807-4809 (US 20608). A 1975 Tobacco Institute press release promoting its booklet "The Cigarette Controversy," an outline of doubts about the health risks of smoking, noted the industry's commitment of "$50 million to help support researchers who are seeking the truth." TIMN0120638-0639 (US 21698). In 1981, 1982, and 1984, Tobacco Institute brochures providing publicity for CTR funding of research were titled respectively "Tobacco Industry Research on Smoking and Health: A $104 Million Commitment," 2046754709-4719 (US 20474); "Tobacco Industry Research on Smoking and Health: A $111 Million Commitment," 670500617-0620 (US 20968); and "Tobacco Industry Research on Smoking and Health: A $120 Million Commitment." 2045377870-7876 (US 20460).
143. One Tobacco Institute advertisement that ran in major newspapers and magazines throughout the country consisted of a photocopy of a February 1969 CTR press release, 779023398-3400 (US 36484), quoting CTR's Scientific Director, Clarence Cook Little, with a headline declaring "How Much is Known about Smoking and Health." TIMN0000560-0561 (US 21874) (ad in Broadcasting); 1005132848-2849 (US 20222) (ad in New York Times); TIMN0081695-1696 (US 21308) (ad in February through April 1969 magazines and newspapers). The General Counsel of Philip Morris, Reynolds, B W, Lorillard, and Liggett were asked to, and did, approve the running of the advertisement. 1005153098-3099 (US 20227); TIMN0081698-1698 (US 21309).
144. In a November 1962 interview on a Mutual Broadcasting System radio show discussing "Cigarette Smoking and Lung Cancer," Tobacco Institute President George Allen explained that the Tobacco Institute supported smoking and health research
through a sister organization, the Tobacco [Industry] Research Committee, which has done more investigation in the eight years since it was established than any other private scientific organization or medical organization in the specific subject of lung cancer . . . over 100 individual grants . . . over five million dollars.
When asked about statistical studies which seemed to implicate smoking and disease, Allen replied with the Defendants' position that
[t]hese statistical studies add up to the need for further intensive scientific work on the subject . . . nobody knows what causes cancer . . . this is a matter that remains to be found by thorough and energetic scientific investigation.
500052010-2018 at 2010-2011 (US 63600); Brandt WD, at 114:7-115:7.
145. Leonard Zahn, TIRC/CTR's public relations counsel, maintained close ties with the Tobacco Institute and served as a liaison between the two organizations. He kept in close touch with William Kloepfer at the Tobacco Institute, "advising [Kloepfer] in advance about meetings and other situations that might create a problem," such as an article or meeting "dealing with an adverse report on smokers." Zahn PD, Cipollone v. Liggett, 12/18/86, 408:5-409:19. Zahn sent carbon copies of his CTR reports to the Tobacco Institute; spoke at sessions of the Tobacco Institute College of Tobacco Knowledge; and was a member of the Tobacco Institute Communications Committee. Duffin PD,Cipollone v. Liggett, 1/23/86, 87:12-88:2; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 145:14-146:11, 149:25-150:10; TI04962331-2334 (US 86167); TI04962389-2389 (US 62201); TI04962390-2398 (US 62202); TIFL0068387-8387 (US 77028); Zahn PD,Cipollone v. Liggett, 12/16/86, 129:13-15, 18, 21-23, 130:1-3, 12-19, 130:22-131:2, 188:24-189:6; Zahn PD, Cipollone v. Liggett, 12/17/86, 274:2-8, 275:5-21; Zahn PD, Richardson v. Philip Morris, 12/1/98, 52:9-55:3, 275:17-276:6; Zahn PD, Richardson v. Philip Morris, 12/16/98, 308:7-14; Zahn PD, Richardson v. Philip Morris, 1/13/99, 837:6-21.
146. According to a 1969 letter, Robert Hockett, CTR's Associate Scientific Director, was asked to review Tobacco Institute publications, such as "The Cigarette Controversy" and "Eight Questions and Answers," and give suggestions for improvement. HK0108004 (US 21171).
147. Members of CTR's supposedly independent SAB, like Arthur Furst and Sheldon Sommers, appeared at Tobacco Institute press conferences to discredit mainstream scientific research. In an April 1970 briefing and update "on industry public relations in the field of smoking and health," Jim Bowling of Philip Morris reported to Robert Heimann, President of American, about Tobacco Institute plans to hold a press conference on April 30, 1970, to discredit the Auerbach-Hammond beagle study (discussed further at Section III(F)(3)(¶¶ 337-342), infra). The spokesmen for the industry were to be CTR's Arthur Furst and Sheldon Sommers who would "take a stand against the ACS [American Cancer Society] propaganda approach to 'science.'" 966000976-0977 (US 86084).
148. The Tobacco Institute invited Sheldon Sommers to testify before Congress on behalf of the industry. Sommers PD, Galbraith v. Reynolds, 9/4/85, 58:25-59:10. Leonard Zahn at TIRC/CTR edited the testimony that Sommers gave before Congress into a magazine article for American Druggist. Zahn PD, Cipollone v. Liggett, 12/17/1986, 223:12-224:11, 224:16-224:16, 225:7-225:12; Sommers PD, Cipollone v. Liggett, 10/3/86, 276:11-18; Sommers PT,Cipollone v. Liggett, 4/20/88, 8890:18-8890:25. The article titled "Smoking and Health: Many Unanswered Questions" was published in the September 1970 issue of American Druggist. The editor's note identified author Sheldon Sommers as Chairman of the SAB. ZN16062-6065 (US 21161); CTRMN015361 (US 79869); CTRMN015362-5365 (US 79870); CTRMN015384-5387 (US 79879); CTRMN015389 (US 79881).
149. In 1974, William Kloepfer, Tobacco Institute Vice President for Public Affairs, conducted filmed interviews with several CTR-affiliated persons on issues related to smoking and health. The opinions of the CTR-affiliated persons were unanimously supportive of the Enterprise's positions on smoking and health issues, although both individuals claimed to be expressing their own individual personal opinions. Sheldon Sommers, CTR's Association Scientific Director and SAB Chairman, stated that "there is no sound evidence that smoking is harmful to the health of the nonsmoker." Domingo Aviado, CTR Special Project funding recipient, stated that "on the basis of existing scientific evidence, tobacco smoke, I think, constitutes no health hazard to normal nonsmokers in public places." Robert Hockett, CTR's Scientific Director at that time, stated that "it just seems to me there is no justification for any general laws with respect to the protecting of nonsmokers from smoke." TITX0001450-1455 (US 77110).
150. The Tobacco Institute failed to identify scientists as recipients of CTR Special Project funding and/or Lawyers Special Accounts funding (discussed further at Section (III)(E)(2-3),infra), when incorporating their statements and conclusions in press releases and other publications as those of supposedly independent researchers or research results. TIMN0120737-0738 (US 87601) (1982 press release challenging cigarette package warning, quoting Sterling); TI12431636-1650 (US 62384) (1984 review of medical/scientific testimony presented to Congress titled "The Cigarette Controversy: Why More Research Is Needed," quoting Aviado, Bick, Bing, Blau, Eysenck, Fisher, Furst, Hickey, Rao, Salvaggio, Seltzer, Sterling); MNAT00224317-4354 (US 21223) (1978 brochure titled "The Smoking Controversy: A Perspective," quoting Seltzer, Feinstein, Aviado, Sterling, Huber); TNWL0019638-9640 (US 21703) (1983 press release opposing cigarette package warnings, quoting Blau, Fisher, Eysenck, and CTR's Scientific Director Sommers), TIMN0138444-8446 (US 85362), TIMN0120772-0773 (US 85363), (US 87625); TIMN0125189-5189 (US 77065) (1988 press release disputing Surgeon General Koop's statement that cigarette smoking was addictive and quoting Blau).
3. Tobacco Institute Press Releases, Public Statements, Advertisements, Brochures, and Other Publications
151. During its existence, the Tobacco Institute was the leading public voice of the Defendants. Chilcote PD, Minnesota v. Philip Morris Inc., 9/18/97, 27:5-28:6, 30:16-20; Merryman PD,Richardson v. Philip Morris Inc., 56:17-57:5; 60:1-15. To further the Enterprise's goals, the Tobacco Institute created, issued, and disseminated press releases, public statements, advertisements, brochures, pamphlets, and other written materials on behalf of Defendants (1) denying that there was any link between smoking and disease; that nicotine was addictive; that cigarette companies marketed to youth; and that environmental tobacco smoke ("ETS") posed a health risk; and (2) discrediting scientists and public health officials who took a different position on these issues (See e.g., Section V(A)(5)(c), infra). Dawson TT, 1/12/05, 9927:11-9928:18; Dawson WD, 34:5-7, 36:8-13, 37:4-9, 64:20-23, 65:1-7, 71:12-16, 80:17-23, 81:1-7, 81:13-16, 84:18-19; 87:6-11, 89:1-5, 89:14-19; Chilcote PD, Broin, 11/19/93, 25:8-26:17, 27:15-28:15; Merryman PD, Broin, 11/18/93, 27:18-22; USX6390001-0400 (US 89555); TIMN0081352-1352 (US 21305), (US 63572); TIMN0081695-1696 (US 21308); TIMN0053170-3176 (US 65600); TIMN333361-3363 (US 78730); MNAT00276115-6117 (US 87665); TIMN0120725-0726 (US 87596); TIMN0120727-0728 (US 87597); TIOK0034156-4181 (US 63019); TIMN0120729-0730 (US 65625); TIMN0120731-0732 (US 87598); TIMN0120733-0734 (US 87599); TIMN0120735-0736 (US 87600); TIMN0120737-0738 (US 87601); TIMN0120742-0742 (US 87603); TIMN0120743-0743 (US 87604); TIMN0120745-0745 (US 87606); TIMN012046-0746 (US 87607); TIMN0120747-0747 (US 87608); TIMN0120748-0748 (US 87609); TIMN0120750-0750 (US 87610); TIMN0120751-0751 (US 87611); TIMN0120752-0752 (US 87612); TIMN0120753-0753 (US 87613); TIMN0120754-0754 (US 87614); TIMN0120755-0755 (US 87615); TIMN0120756-0757 (US 87616); TIMN0120758-0759 (US 87617); TIMN0120760-0760 (US 87618); TIMN0120763-0764 (US 87621); TIMN0120768-0769 (US 87623); TIMN0120770-0771 (US 87624); TIMN0120772-0773 (US 87625); TIMN0131860-1861 (US 21744); TIMN0081712-1713 (US 87629); TIMN0081714-1714 (US 87630); TIMN0000471-0495 (US 87631); TIMN0133954-3960 (US 62653); TIMN0133707-3711 (US 87634); TIMN0076952-6961 (US 87635); TIMN0122571-2573 (US 87637); TIMN0122574-2576 (US 87638); TIMN0122577-2578 (US 87639); TIMN0120706-0708 (US 87640); TIMN0131847-1847 (US 87641); TIMN0120619-0619 (US 87642); TIMN0120618-0618 (US 87643); TIMN0109576-9576 (US 87644); TIMN0004099-4099 (US 87646); MNAT00275488-5498 (US 87667); TIMN0120792-0793 (US 87668); (no bates) (US 21239); 2025422955-2958 (US 89306); TI 1016-1258 (US 89307); TI1016-1261 (US 89308); TI 1016-1297-1298 (US 89309); 507789709-9710 (US 89310); TIDN 0012098-2099 (US 89311); TIDN 0005825-5826 (US 89312); 506649098-9099 (89313); 507610852-0853 (US 89314); TIMN334986-4988 (US 89315); 507793570-3571 (US 89316); 877161722-1723 (US 89317); TIMN354292-4294 (US 89318); (no bates) (US 89319); (no bates) (US 89320); (no bates) (US 89289); (no bates) (US 89290); (no bates) (US 89291); (no bates) (US 89292); (no bates) (US 89293); (no bates) (US 89294); (no bates) (US 89295); (no bates) (US 89296); (no bates) (US 89298); (no bates) (US 89299); (no bates) (US 89300); (no bates) (US 89301); (no bates) (US 89302); (no bates) (US 89321); (no bates) (US 21286); (no bates) (US 21363); (no bates) (US 87735); (no bates) (US 85150); TI0720452-0464 (US 87155*).
152. There is no question that the Tobacco Institute intended the public to rely on the public statements the organization made on behalf of its cigarette manufacturer members. Dawson TT, 1/12/05, 9930:2-18; Merryman PD, Minnesota v. Philip Morris, 7/15/97, 36:11-24, 38:15-17, 70:24-71:4. As already noted, the Tobacco Institute's public spokespersons appeared on various television shows broadcast on all major networks in all fifty U.S.states. Merryman PT, Minnesota v. Philip Morris, 2/6/98, 2717:22-2718:21; USX6390001-0400 (US 89555). Brennan Dawson, Vice President of Public Relations for the Tobacco Institute and one of its major spokespersons, stated that she, on behalf of the Tobacco Institute, intended the public to rely on the public statements she made on television, regardless of whether the statements she made were in response to questions posed by the media or were spontaneous statements she volunteered to the media. Walker Merryman, another long-time Tobacco Institute spokesperson, similarly stated that the Tobacco Institute intended the public to believe its public statements. Dawson TT, 1/12/05, 10110:1-6; Merryman PD,Minnesota v. Philip Morris, 7/15/97, 113:5-8, 113:15-114:11, 114:15-16, 125:11-19, 153:9-19, 155:6-11, 186:2-25, 189:14-20, 193:22-194:1, 202:19-23; 2025422955-2958 (US 89306); TI 1016-1258 (US 89307); TI1016-1261 (US 89308); TI 1016-1297-1298 (US 89309); 507789709-9710 (US 89310); TIDN 0012098-2099 (US 89311); TIDN 0005825-5826 (US 89312); 506649098-9099 (US 89313); 507610852-0853 (US 89314); TIMN334986-4988 (US 89315); 507793570-3571 (US 89316); 877161722-1723 (US 89317); TIMN354292-4294 (US 89318); 502823717-3718 (US 50255); TIMN347391-7398 (US 65675); (no bates) (US 89319); (no bates) (US 89320); (no bates) (US 89289); (no bates) (US 89290); (no bates) (US 89291); (no bates) (US 89292); (no bates) (US 89293); (no bates) (US 89294); (no bates) (US 89295); (no bates) (US 89296); (no bates) (US 89298); (no bates) (US 89299); (no bates) (US 89300); (no bates) (US 89301); (no bates) (US 89302); (no bates) (US 89321); (no bates) (US 21286); (no bates) (US 21363); (no bates) (US 87735); (no bates) (US 85150); TI0720452-0464 (US 87155*).
153. However, when asked about public scientific support for the public statements she was making on behalf of the Tobacco Institute, Brennan Dawson could not name a single public health organization that asserted, as did the Tobacco Institute, that it had not been proven that smoking caused disease during the time she was a spokesperson on behalf of the Tobacco Institute. Dawson WD, 76:8-11. Nor could Ms. Dawson name a single medical doctor, not associated with the tobacco industry, who took the position that it was not proven that smoking caused disease. Dawson WD, 76:12-15. Similarly, Walker Merryman, also a Tobacco Institute spokesperson for over twenty years, could not name a single medical doctor not affiliated with the tobacco industry who publicly took the position that there was some medical doubt as to whether smoking caused disease. Merryman PD, Broin, 28:6-29:2.
154. The function of the Public Relations Division of the Tobacco Institute was
to represent our member companies with the press, general public, anyone who had a question about tobacco, specifically the smoking and health issue, but also economics, history. We represented all the companies, so that no one of them had to answer questions from a press person or stock analyst.
Duffin PD, Munn v. Philip Morris, 1/7/87, 93:21-94:5; Chilcote PD, Minnesota v. Philip Morris, 9/18/97, 27:5-28:6, 30:16-30:20. In other words, according to Tobacco Institute Vice President Brennan Dawson, the objectives of the Public Relations Division were "to make public statements and to provide the tobacco industry's point of view, not just one company's, but an industry-wide point of view on matters relating to tobacco." Dawson WD, 34:4-7; 34:13-15.
155. A May 1, 1972 memorandum from Fred Panzer, a public relations specialist with the Tobacco Institute, to Tobacco Institute President Horace Kornegay began by describing past industry action:
For nearly twenty years, this industry has employed a single strategy to defend itself . . . it has always been a holding strategy, consisting of creating doubt about the health charge without actually denying it, advocating the public's right to smoke without actually urging them to take up the practice . . . encouraging objective scientific research as the only way to resolve the question of health hazard.
Panzer went on to discuss a proposed public relations campaign — The Roper Proposal — designed to persuade the public that "[c]igarette smoking may not be the health hazard that the anti-smoking people say it is because other alternatives are at least as probable" (emphasis omitted). The proposed campaign would suggest two such possible alternatives: (1) the constitutional hypothesis, i.e., smokers differ importantly from nonsmokers in terms of heredity, constitutional makeup, lifestyle, and stress; and (2) the multi-factorial hypothesis, i.e., other factors such as air pollution, viruses, food additives, and occupational hazards contribute to diseases for which smoking is considered a cause. TIMN0077551-7554 at 7551-7553 (US 63585); 87657703-7706 (US 21098), (US 79218); Brandt TT, 125:2-127:10; Panzer PD, Small v. Lorillard, 10/22/97, 206:16-207:20; Panzer PD, Iron Workers v. Philip Morris, 12/18/98, 18:22-21:12; USX6390001-0400 (US 89555) (TI Response to Request for Admission Nos. 242, 243).
156. In order to issue public statements regarding smoking and health, the Tobacco Institute contracted with numerous scientists to conduct research on related issues. Such consultants included Salvatore DiNardi, Gio Gori, Larry Holcomb, Alan Katzentein, Peter Lee, Maurice LeVois, Mark Reasor, Sorell Schwartz, Murray Senkus, David Weeks, Lawrence Wexler, Philip Witorsch, and Ray Witorsch. WAX001 1075-1127 at 1084 (US 64758) (TI Response to Interrogatory No. 8).
157. During the twenty-one years that Anne Duffin, and the twenty-two years that Walker Merryman, worked for the Tobacco Institute's Public Affairs Division, they prepared many of the Tobacco Institute publications that disputed the existence of any link between smoking and disease; that nicotine was addictive; that cigarette companies marketed to youth; and that Environmental Tobacco Smoke ("ETS") posed a health risk. Titles of such publications include, but are not limited to: Cigarette Smoking and Heart Disease; Cigarette Smoking and Cancer: A Scientific Perspective: Smoking and Health, The Continuing Controversy 1964-1979; On Tobacco: 21 Questions and Answers; The Cigarette Controversy, Eight Questions and Answers; About Tobacco Smoking: Smoking and Women; and Vital Statistics — How Accurate Are They? Duffin PD, Munn v. Philip Morris, 1/7/87, 64:22-65:6, 95:11-97:1, 100:10-102:8, 102:14-103:1, 113:8-21, 114:1-15, 20-24, 121:1-122:24, 123:3-15, 126:3-127:19, 133:21-135:12, 136:15-19, 139:5-140:3, 141:2-10; Duffin PD, Cipollone v. Liggett, 1/23/86, 63:10-64:16; Merryman PD, Minnesota v. Philip Morris, 7/16/97, 317:13-22; 519838352-8517 (US 87707); 519838518-8621 (US 87708); 519838622-8674 (US 87709); TI01071639 (US 62099); 2501112047-2098 (US 20561); 2025431644-1748 (US 20417); TIMN0121541-1558 (US 65632); TIMN0055304-5330 (US 62816); TIOK0027221-7226 (US 77109); 1005152849-2896 (US 20226); TIMN300233-0257 (US 65670); TIMN0121622-1646 (US 65626).
158. Over the years, the Tobacco Institute attempted to discredit many of the Surgeon General's Reports through its public statements, press conferences and other publications. Merryman PD, Kueper v. R.J. Reynolds, 6/26/92, 19:12-21:2; Kornegay PD,Cipollone v. Liggett, 12/6/94, 683:4-687:6; Duffin PD,Munn, 1/7/87, 100:10-102:8, 102:14-103:1, 111:10-112:9, 117:6-25; TIMN0125189 (US 67277); TLT0390022-0024 (US 76770). For example, a "personal and confidential" Lorillard memorandum dated January 8, 1979 from Curtis H. Judge to J. Robert Ave and Arthur J. Stevens, all high corporate officials of Defendants, related a January 5, 1979 conversation that Judge had with Alexander Spears of Lorillard and another conversation with Bill Kloepfer of the Tobacco Institute:
Dr. Spears surmises that this carbon monoxide information may be the new "bombshell" part of the Surgeon General's report and the part of the report which is new and likely to attract the media. At 4:30 on Friday afternoon I talked with Bill Kloepfer at the Tobacco Institute and he had just learned of this information a few hours ago (about the same time we did) on what he described as an "intercept." He agrees with our conclusions as to how it will be used in the Surgeon General's report and the Institute will work on counteracting it. I promised that we would get the information to him should we receive it before he does.
85158126-8127 at 8126-8127 (US 56009).
159. The Enterprise's concern about the substance of the 1983 Surgeon General's Report was a constant theme throughout the Tobacco Institute's documents for months before the report was ever published. As early as July 1, 1982, "the Scientific Affairs Division was in the process of devising strategies to counter the 1983 Surgeon General's Report." TI0396-1863-1866 at 1863 (US 62157). Before the Surgeon General's Report was even made public,
Sam Chilcote . . . asked that [the Tobacco Institute] take certain steps to blunt the impact of the 1983 Surgeon General's report on the ground that, as in the past, it will lack objectivity. We expect the subject to be smoking and heart diseases.
Specifically, the plans directed the Scientific Division
to prepare a relatively brief logical paper covering selected areas of inadequate knowledge and contradictions in the case for smoking as a cause of or risk factor in heart diseases.
The central role of legal counsel in the clearance process was also detailed in the memorandum:
Shook, Hardy will provide clearance of the paper and of its final format which will be developed by the Public Relations Division. At the same time the PR staff and PR counsel will prepare a list of media people who may be expected to cover the Surgeon General's Report.
The following directive was issued by Kloepfer: "When the Surgeon General's Report is issued, the PR staff will stick to the TI position rather than commenting directly on the report." TI03961860-1861 (US 62156).
160. A document dated October 18, 1982, titled "Memorandum for the Record — Subject: Planning TI's Response or Planning to Meet the 1983 Surgeon General's Report" detailed the entire chronology of this Tobacco Institute effort. TI03961863-1866 at 1863 (US 62157).
161. At the December 9, 1982 Tobacco Institute Board of Directors meeting, Tobacco Institute President Samuel D. Chilcote, Jr., discussed the Institute's approach to the upcoming 1983 Surgeon General's Report. The Tobacco Institute's plans included personally passing out summaries of its document on "Smoking and Cardiovascular Disease" to several dozen reporters; having George Schafer, Tobacco Institute Medical Director, on hand to answer the reporters' questions and lend credibility; holding its "own press conference a day or so before the Surgeon General's press conference challenging the contention that smoking causes cardiovascular disease," with Shook, Hardy Bacon providing assistance; and attempting to "encourage a non-tobacco state congressman to launch an investigation into MRFIT [Multiple Risk Factor Intervention Trials] shortly before the Surgeon General's conference," alleging that it was a waste of 115 million tax payers' dollars, "thereby putting the Surgeon General on the defensive." TIMN0017276-7303 (US 86118).
162. A January 11, 1983 memorandum detailing the monthly overview of the Tobacco Institute's Scientific Affairs Division listed as its first "key" item the "[p]reparation and refinement of Institute's response to the 1983 Surgeon General's forthcoming report on heart disease." TI03962431-2432 at 2431 (US 62160).
163. Similarly, the Tobacco Institute was very active in planning a response regarding the release of the 1987 Surgeon General's Report which discussed the addictive nature of smoking. Dawson WD, 21:21-22:7. Suggested strategies for the Tobacco Institute response and the public's potential reaction were carefully considered. TIMN34639-9639 (US 62752); TIMN349632-9633 (US 62751). Samuel Chilcote wrote informational memoranda about the Surgeon General's Reports for distribution to the Tobacco Institute Executive Committee. See, e.g., TINY 0009385-9387 (US 58830) (1992 Surgeon General's Report). Brennan Dawson, Vice President of Public Relations for the Tobacco Institute, also made a presentation at a 1988 Tobacco Institute Communications Committee meeting, about her plans to distribute editorials favorable to the industry about the 1987 Surgeon General's Reports to editorial writers. Dawson also invited additional distribution suggestions from Communications Committee members. Dawson WD, 21:21-22:7, see Section III(D)(4)(c), infra for detailed discussion of the Tobacco Institute Communications Committee.
164. In anticipation of the 1989 Surgeon General's Report, the Tobacco Institute launched its "Enough is Enough" campaign which included
national advertising efforts in 19 newspapers, a new public opinion poll, a comprehensive tobacco issues brief, and a video with smokers and nonsmokers expressing their opinions on the anti-smoking movement.
TI09911581-1615 at 1601 (US 62252); 507635309-5348 (US 66484); Dawson WD, 66:14-69:22. The Tobacco Institute launched a major media campaign, distributing materials and information to some 2,500 reporters, conducting a private briefing for the Washington, D.C. press corps, and distributing both television and radio satellite press releases, all with the aim of publicly discrediting the forthcoming Surgeon General's Report. Dawson WD, 66:14-69:22; TI0991 1581-1615 at 1601 (US 62252). Tobacco Institute documents indicate that the Tobacco Institute believed its efforts were worthwhile since the first question the Surgeon General received at his press conference releasing his 1989 Report was generated by the "Enough is Enough" campaign. TI0991 1581-1615 at 1601 (US 62252); Dawson WD, 66:14-69:22.
165. Attorneys representing Defendants again played a major role in these efforts to discredit the Surgeon General's Reports and attack other scientific research linking smoking and disease. They meticulously edited and rewrote drafts of Tobacco Institute advertisements, articles, and public statements. Lawyers regularly recommended ideas for articles and provided materials to the Tobacco Institute for consideration. 1005134430-4432 (US 36107); 508089329-9329 (US 86089).
166. In a July 6, 1977 memorandum to William Kloepfer of the Tobacco Institute, attorney Donald Hoel of Shook, Hardy Bacon significantly changed the draft of an article titled "Why the Case Against Smoking is Not Closed" and recommended a "major rewriting effort." Hoel also expressed dissatisfaction that attorneys had not previously had the chance to review the article. He wrote that
it would be beneficial and time-saving if the content of such material as the proposed article could be first "cleared" with the appropriate persons at the Tobacco Institute before an "approved" draft is sent here for legal clearance.
Hoel went on to recommend that the lawyers be given advance notice of such articles so they could "make suggestions and provide materials for consideration." TIMN262629-2629 (US 62734).
167. The Tobacco Institute also worked with its public relations counsel and its member companies to anonymously disseminate deceptive and misleading public statements, such as the True magazine article, to promote the sale of cigarettes. CTRMN 015575-15593 (US 79902); Zahn PD, Cipollone v. Liggett, 12/18/86, 349:1-4, 20-23, 351:4-14, 357:22-25, 361:3-8, 17-22. Joseph Fields, a public relations agent for B W, arranged for a reporter named Stanley Frank to write a smoking and health article, titled "To Smoke or Not to Smoke — That Is Still The Question," which appeared in the January 1968 issue of True magazine. In the article, Frank stated that he had reviewed the evidence and found it contradictory and inconclusive; he concluded that the hazards of cigarette smoking were not so real as the public had been led to believe. TIMN462375-2380 (US 21660). Frank did not disclose that he had been paid $500 by the Defendants for his time and expenses in writing the article and had been guaranteed another $1250 in the event that it was not published; that tobacco industry representatives including Ed Jacob of Jacob Medinger, attorneys for TIRC, had reviewed the article prior to publication; or that he worked for Hill Knowlton. 690012994-2993 (US 54322); Zahn PD, Cipollone, 12/18/86, 349:1-4, 20-23, 351:4-14, 357:22-25, 361:3-8, 17-22.
168. Furthermore, one of the Tobacco Institute's public relations agencies, The Tiderock Corp., had arranged to run a one-half-page advertisement promoting the True article titled "Are Cigarettes Really Harmful to Your Health?" The advertisement ran in the top seventy-two markets in the United States at an estimated cost of $69,000 paid for by Defendants Philip Morris, Reynolds, B W, American, and Lorillard. The public did not become aware of these facts until the information was revealed in a series of investigations by the Wall Street Journal, Consumer Reports, and Senator Warren Magnuson. Zahn PD, Cipollone, 12/18/86, 349:1-4, 20-23, 351:4-14, 357:22-25, 361:3-8, 17-22; TIMN462375-2380 (US 21660); TIMN0123336-3336 (US 21628).
169. In addition to its press releases and publications, the Tobacco Institute regularly published various newsletters to further publicize its viewpoint on behalf of the Enterprise. TIMN339121-9128 at 9121 (US 86127); TINY 0009385-9387 (US 62964); 947089976-9979 (US 32332); TI16300337-0345 (JE 062448). In May 1976, the Tobacco Institute published its first issue of its most widely distributed newsletter, The Tobacco Observer. The public purpose of the newsletter, as stated in the first issue, was to "enable 'thousands' whose livelihoods are associated with tobacco 'to be well informed about the problems facing tobacco.'" The Tobacco Observer was published bi-monthly from 1976 until December 1988, under the supervision of the Tobacco Institute's Special Projects. 690018786-8786 (US 86119); TIOK0015372-5378 at 5373 (US 86126); TIMN366674-6895 at 6864 (US 86120).
170. The Tobacco Institute circulated The Tobacco Observer free of charge to company employees, broadcasters, newspapers, and individuals. At the early stages of publication, the Tobacco Institute requested and received lists of names and addresses of potential subscribers from the tobacco companies. In 1978, the Tobacco Institute calculated circulation to have reached 80,000 and by 1988 circulation had almost doubled to 145,000. Most subscriptions, however, were unsolicited. According to a June 1, 1987 memorandum from Anne Duffin to Peter Sparber, "TTO [The Tobacco Observer] subscribers, some dating back 11 years, have never been asked if they want copies. Most were added to the subscription list by Institute staff through personal contact or tobacco group rosters[.]" 670059500-9506 at 9503 (US 86121); 690019767-9767 (US 86122); 680549177-9182 at 9179 (US 86123); TIOK0015372-5378 at 5372 (US 86126).
171. Articles in The Tobacco Observer perpetuated the Enterprise's denials of causation and harm from smoking. One headline announced, "Smoke not harmful to average non-smoker" (October 1978). In the May 1976 issue, one headline read "No Simple Answers; Research Disputes UPI;" this article followed another that stated, "no cause and effect relationship between cigarette smoking and pulmonary emphysema has been established." In a June 1, 1987 memorandum, Anne Duffin wrote candidly about The Tobacco Observer:
Historically TTO [The Tobacco Observer] has related good news only, presenting the bad only in its most optimistic context . . . TTO's purpose was to inform, to cast favorable light upon tobacco's many controversies.
03048388-8399 at 8388 (US 86124); TIMN0127465-7475 at 7467 (US 86125); TIOK0015372-5378 at 5373 (US 86126).
4. Tobacco Institute Committees
172. The Tobacco Institute was run by a variety of committees, comprised of representatives and agents from Defendants Philip Morris, Lorillard, Liggett, Reynolds, and B W, and employees from Defendant Tobacco Institute. The most influential and powerful of these were the Tobacco Institute Committee of Counsel, the Tobacco Institute Executive Committee, and the Tobacco Institute Communications Committee.
a. Committee of Counsel and Outside Counsel
173. The Tobacco Institute Committee of Counsel was comprised of the general counsels of the sponsoring companies of the Tobacco Institute — Philip Morris, Reynolds, Lorillard, Liggett, and B W — as well as counsel for American. 85686131-6131 (US 87589) (Lorillard); 1005147807-7807 (US 36119) (Philip Morris); 03654362-4362 (US 29296) (Reynolds); 517004087-4090 (US 20874) (B W); LG2014927-4931 (US 86090) (Liggett); 681725305-5307 (US 21019) (American); Stevens WD, 2:18-22, 5:1-11, 5:12-23; Juchatz TT, 11/18/04, 06545:11-06546:2; Kornegay PD, Small v. Lorillard, 11/18/97, 34:11-18. Representatives from Philip Morris Companies also were members of the Committee of Counsel, and some Committee of Counsel meetings were held at Philip Morris Companies headquarters in New York. Northrip WD, 8:14-8:5; 2023033745-3745 (US 87590); 2023033795-3795 (US 87591). Members of the Committee of Counsel also included attorneys from the outside law firms of Covington Burling, Jacob Medinger Finnegan, and Shook, Hardy Bacon. WAX0011075-1127 at 1088-1093 (US 64758); Hoel PD, United States v. Philip Morris, 6/27/02, 71:17-22; 521043046-3050 (US 20891); 680038350-8352 (US 20980); Stevens WD, 5:1-11; Stevens TT, 01278:10-01280:1.
174. The purpose of the Committee of Counsel meetings was to discuss legal issues related to the tobacco industry and to provide legal advice on any matter that member companies would bring before it. Northrip WD, 8:11-13.
175. The importance of the Committee of Counsel was described in an October 1964 trip report written by visitors from Britain's Tobacco Research Council:
The leadership in the U.S. smoking and health situation therefore lies with the powerful Policy Committee of senior lawyers advising the industry, and their policy, very understandably, in effect, is "don't take any chances." It is a situation that does not encourage constructive or bold approaches to smoking and health problems, and it also means that the Policy Committee of lawyers exercises close control over all aspects of the problems.
1003119099-9135 (US 20152).
176. The primary function of the Committee of Counsel within the Enterprise was described in a document prepared by Ernest Pepples, General Counsel for B W:
[T]he primary function of this Committee of Counsel has been to circle the wagons, to coordinate not only the defense of active cases, but also to coordinate the advice which the General Counsels give to ongoing operations of their companies pertaining to products liability risks.
517004087-4090 (US 20874).
177. The Committee of Counsel met frequently over the years and the agenda of its meetings covered a wide range of topics that were of concern to the Defendants. Typical items discussed included various smoking and health related issues including addiction, industry witness development (especially in the area of ETS), Special Projects, Special Accounts, CTR's Literature Retrieval Division, review of the Tobacco Institute's ads, institutional research, and smoking and health litigation generally. Stevens WD, 6:10-12, 6:13-21; Northrip WD, 8:11-13; 680239427-9429 (US 30835); 03654134-4134 (US 29291); 85686132-6132 (US 87592); 85686235-6236 (US 87593); 85685497-5497 (US 32030); 03654220-4220 (US 29293); 03654179-4180 (US 87594); 503762768-2768 (US 86093); 03654341-4342 (US 29295); 03654327-4328 (US 29294); 85685745-5745 (US 86094); 503689705-9705 (US 86095); 85682380-2381 (US 32023); 1005085870-5870 (US 35994); LG2005471-5473 (US 88096); 03654160-4160 (US 86097); 03746187-6190 (US 86098); LG2008241-8242 (US 21206); 03638986-8987 (US 86815); 03746184-6185 (US 20600); 2024671248-1255 (US 21584); 1005121522-1526 (US 23046); LDOJ2607427-7434 (US 86099); BWX0004268-4274 (US 36225); 03601453-1453 (US 86102); 01333625-3625 (US 26468); 03654139-4147 (US 86103); XBW0011405-1416 (US 86104); BWX0004264-4267 (US 36224); 680542504-2505 (US 86105); TIFL0407411-7411 (US 22044); TIFL0407410-7410 (US 22041); 681000290-0293 (US 21015).
178. Even when Liggett decided to cease participation in the Tobacco Institute as a Class A member, it continued to participate in the Committee of Counsel. In a September 21, 1993 letter from Liggett's in-house counsel Josiah Murray to the Tobacco Institute's President and Counsel, Liggett sought to reduce its payments to the Tobacco Institute, but at the same time sought Tobacco Institute approval to continue participating in the Tobacco Institute's Committee of Counsel, and to have continued access to Tobacco Institute information and data, including reports and memoranda from Covington Burling to the Committee of Counsel. In seeking these materials, Murray assured the letter's recipients that Liggett would continue to conform its conduct in accordance with the Enterprise's strategies, writing:
It is not the intent of Liggett to conduct its business in a manner adverse to the interest of the industry as a whole with respect to those legal and political issues as to which, by applicable law, the several competitor companies have a right to act in concert and in collaboration one with another, and attaining this objective is enhanced, of course by [Liggett] being adequately informed.
LWDOJ00023390-00023392 (US 25910).
179. The role of outside counsel, as opposed to the in-house general counsels, including Shook, Hardy Bacon, Jacob, Medinger Finnegan and Covington Burling, was to assist the Committee of Counsel. 03638986-8987 (US 86815); Rupp WD, 38:21-39:19; Northrip WD, 6:12-16; 6:22-6-1:25; Dawson WD, 15:15-21. As has already been mentioned, and will be further elaborated on infra, two of those law firms, in particular Covington Burling, became the guiding strategists for the Enterprise and were deeply involved in implementation of those strategies once adopted.
180. Covington Burling was counsel for the Tobacco Institute and was also described as counsel for the "industry." 682150942-0942 (US 86491); Rupp WD, 38:21-39:19. An attorney from Covington Burling attended every meeting of the Committee of Counsel. Covington Burling attorneys first reviewed agenda proposals for the Committee of Counsel meetings before they were sent to member companies. Blixt PD, United States v. Philip Morris, 10/31/02, 159:20-161:13, 169:13-170:1. Covington Burling also cleared press releases issued by the Tobacco Institute. Merryman PD, Minnesota v. Philip Morris, 7/16/97, 414:21-415:2, 416:10-22.
181. Shook, Hardy Bacon was counsel for Defendants Philip Morris, Philip Morris Companies, Lorillard, Reynolds, and B W, and benefitted from a close association with Defendant Tobacco Institute. 521043046-3050 (US 20891); TIMN0245637-5638 (US 62723); 2015007199-7207 (US 20311); Northrip TT, 9/30/04, 01334:19-01335:5; Kornegay PD, Cipollone v. Liggett, 8/17/84, 177:23-178:3, 179:5-21, 185:20-186:3. In fact, Robert Northrip, following his attendance at a Committee of Counsel Meeting, would normally bill either three or four tobacco companies (including Phillip Morris, Lorillard, B W and possibly Reynolds) for his time. Northrip TT, 9/30/04, 01346:12-22; Northrip WD, 5:17-5-1:11.
182. In addition to John Rupp of Covington Burling serving as counsel for the Tobacco Institute and the "industry," Shook, Hardy Bacon was also given a wide range of responsibilities for the Enterprise. In a May 18, 1982 memorandum, William Shinn of the firm described its activities relating to the Tobacco Institute and noted that it examined "most material emanating from the Tobacco Institute which has potential smoking and health overtones." This memorandum was addressed to Robert Sachs, Assistant General Counsel for B W, and Arthur Stevens, Senior Vice President and General Counsel for Lorillard, and copied to Thomas Ahrensfeld, Senior Vice President and General Counsel for Philip Morris; Alexander Holtzman, Assistant General Counsel for Philip Morris; Ernest Pepples, General Counsel for B W; and Samuel Witt, General Counsel for Reynolds. Since the firm's review involved a great deal of give and take, it sometimes "prepar[ed] the final version" of the product. Shook, Hardy Bacon also assisted the Tobacco Institute in setting strategy, preparing witnesses on smoking and health issues, briefings, reviewing press releases, advertisements, and other public statements, and orchestrating follow-up activities. Shinn remarked: "While we are asked occasionally to do something that we believe T.I. should do itself, we have always reserved the right to decline unless directed by the Committee of Counsel." 521043046-3050 (US 20891).
183. Shook, Hardy Bacon's role was further explained in a June 28, 1988 memorandum from Donald Hoel of Shook, Hardy Bacon to Todd Sollis, Associate General Counsel for Philip Morris Management Corporation. Hoel explained that
[b]ecause SHB represents several of those [cigarette] manufacturers and enjoys a close association with the TI, the firm is able to move freely among industry members, facilitating cooperation and open communication. In this way, SHB helps eliminate potential difficulties within the tobacco industry that could reduce PM's ability to address effectively smoking and health issues and impair its defense of lawsuits.
2015007199-7207 (US 20311); Northrip TT, 9/30/04, 01334:19-01335:5.
184. Jacob, Medinger Finnegan was yet another law firm which played a major advisory role as counsel for Reynolds, B W, and CTR. Edwin Jacob attended and gave presentations at Committee of Counsel meetings; he was also involved in the administration of CTR Special Projects (discussed further at Section III(E)(2),infra). 680038350-8352 (US 20980); 1005121522-1526 (US 23046).
b. Tobacco Institute Executive Committee
185. The Tobacco Institute Executive Committee had the "final voice on TI matters" and Tobacco Institute statements. It included two representatives from each of the cigarette manufacturer member companies of the Tobacco Institute and had a rotating chairmanship. Chilcote PD, Richardson v. Philip Morris, 9/21/98, 92:21-97:2; Kornegay PD, Small v. Lorillard, 11/18/97, 25:13-29:1. The Executive Committee also set Tobacco Institute policy and determined resource allocation within the organization. Dawson WD, 10:13-11:2.
186. The Tobacco Institute Executive Committee met frequently to keep abreast of issues of common concern within the Enterprise. In addition to having final approval authority on all Tobacco Institute matters, the Executive Committee often discussed issues of joint industry research on smoking and health, research funded through CTR, and funding of Tobacco Institute advertising. Dawson WD, 11:3-6; Northrip WD, 8:11-13; Chilcote PD, Broin, 11/19/93, 34:5-35:5; 03677101-7103 (US 29313); TIMN0013425-3428 (US 88258); TIMN0013471-3476 (US 88259); TIMN0013429-3431 (US 88261); TIMN0013432-3435 (US 88262); TIMN0013460-3464 (US 88264); TIMN0013471-3476 (US 88265); TIMN0013508-3513 (US 88266); TIMN0013514-3517 (US 88267); TIMN0013518-3251 (US 88268); TIMN0013526-13530 (US 88269); TIMN0013554-3557 (US 88270); TIMN13450-3454 (US 88276); TIMN0013441-3445 (US 88289); TIMN0013455-3456 (US 88291); TIMN0013477-3484 (US 88293); TIMN0013485-3489 (US 88294); TIMN0013490-3495 (US 88295); TIMN0013496-3499 (US 88296); TIMN0013500-3507 (US 88297); TIMN0013550-3553 (US 88298); TIMN0013558-3563 (US 88299); TIMN0013583-3589 (US 88300); TIMN0013628-3632 (US 88301); TIMN0013651-3655 (US 88302); TIMN0013656-3659 (US 88303); TIMN0014418-4425 (US 88304); TIMN0017720-7722 (US 88305); TIMN0017725-7729 (US 88306); TIMN0017731-7736 (US 88307); TIMN0018436-8439 (US 88308); TIMN0018451-8455 (US 88309); TIMN0018462-8466 (US 88310); TIMN0018590-8593 (US 88311); TIMN0019234-9239 (US 88312); LG0237151-7159 at 7154 (US 21194).
187. For example, the Tobacco Institute Executive Committee met on January 12, 1964, to discuss the implications of the 1964 Surgeon General's Report on Smoking and Health. The Executive Committee agreed that it was "considered to be of prime importance that the industry maintain a united front and that if one or more companies were to conduct themselves as a matter of self interest, particularly in advertising, obvious vulnerability would be the result." LG2008203-8210 (US 22682).
188. A 1974 Tobacco Institute report titled "Defending Tobacco" stated that the Tobacco Institute Board of Governors' adoption, in January 1971, of the Guidelines for Authority and Responsibility of the Tobacco Institute, had greatly improved the Tobacco Institute's overall efficiency. The report established authority and responsibility of the Tobacco Institute's staff and committees, placed more authority in its President, and required more frequent meetings of the Executive Committee to create and review Tobacco Institute policies, programs and objectives. The Guidelines eliminated much undue delay occasioned in the past in obtaining approval and authority from the Tobacco Institute Executive Committee or its Board members for Tobacco Institute action and improved the overall efficiency of the Enterprise. TIMN217628-7639 (US 21263).
c. Tobacco Institute Communications Committee
189. The Tobacco Institute Communications Committee reviewed and approved Tobacco Institute advertisements, media plans, and public relations campaigns carried out by the Tobacco Institute on behalf of the Enterprise. Chilcote PD, Richardson v. Philip Morris, 9/21/98, 263:5-14.
190. Each Tobacco Institute member company designated its public relations people to attend meetings of the Communication Committee and to inform their respective companies about the activities of the Committee. Dawson WD, 17:9-23; Dawson TT, 1/12/05, 9899:20-9900:10; Duffin PD, Barnes v. American Tobacco, 10/6/97, 118:4-119:3, 119:7-121:2. Membership of the Communications Committee consisted of representatives of Reynolds, B W, Phillip Morris, Lorillard, Liggett, and American, as well as outside lawyers from Shook, Hardy Bacon and Covington Burling, Tobacco Institute public relations staff and CTR public relations counsel Leonard Zahn. Dawson TT, 1/12/05, 9899:20-9900:10; Zahn PD, Richardson v. Philip Morris, 12/1/98, 52:9-55:3; Zahn PD, Cipollone, 12/17/86, 274:2-8; 275:5-21; 794003131-3132 (US 86107); TIMN0081843-1864 (US 86108); 03678709-8711 (US 88313);680241704-1705 (US 54034); ZN21992-1995 (US 21375); 690014846-4848 (US 86111); TIMN0124674-4674 (US 88323); TIMN0124717-4718 (US 86113); 680570007-0008 (US 86114); 87716615-6618 (US 86117); TI16470337-0338 (US 62449); TI09911543-1580 (US 62251); TI09911581-1615 (US 62252); TI09911885-1920 (US 62255); TI09912151-2191 (US (62256); TIMN345630-5665 (US 77092); TIMN345741-5777 (US 77093).
191. Members of the Communications Committee considered CTR a public relations benefit for the Enterprise. According to minutes from the September 17, 1971 Communications Committee meeting, William Kloepfer, Vice President of the Tobacco Institute, briefed the committee on the status of industry-financed research, including research funded by CTR. Kloepfer called this research, "the best basis for affirmative public relations." Leonard Zahn, public relations counsel to CTR from 1955 until 1993, was even a member of the Tobacco Institute Communications Committee and attended committee meetings at the behest of Kloepfer of the Tobacco Institute. TIMN0003978-3980 (US 87595); Zahn PD, Cipollone, 12/16/86, 129:13-15, 18, 21-23; 130:1-3, 12-19, 130:22-131:2; Zahn PD, Richardson, 12/1/98, 52:9-55:3; Zahn PD, Cipollone, 12/17/86, 274:2-8, 275:5-21.
192. A 1974 Tobacco Institute report titled "Defending Tobacco" stated that, prior to 1967, much of the communication between member companies was through the Tobacco Institute Committee of Counsel, or by informational memoranda. According to this report, one change that greatly facilitated the internal information flow within the Enterprise was the creation in 1969 of the Communications Committee, which was made up of representatives of each major company and of the Tobacco Institute's legal counsel and who met frequently to advise on the Tobacco Institute's public relations strategy. TIMN217628-7639 (US 21263).
193. Through these Tobacco Institute committees, the Defendants, through their executives, employees, agents, and attorneys, controlled the Tobacco Institute and set its policy, including approving and authorizing the multitude of statements made by the Tobacco Institute about smoking and health. While this structure changed somewhat over time, Defendants always maintained control over the Tobacco Institute's activities and committees.
5. Tobacco Institute College of Tobacco Knowledge
194. Coordination of information and careful instruction on how information should be presented and disseminated to the public was a major aim of the Enterprise. It was considered vital to leave no member vulnerable to attack in litigation or to subject the industry to further regulation. One extremely successful method used to ensure that industry representatives understood and were able to publicly transmit consistent statements regarding smoking and health and other issues of common concern to the Defendants was the operation of training seminars by the Tobacco Institute's College of Tobacco Knowledge. The College began in the 1970s and operated for over a decade. Dawson WD, 26:7-21, 27:2-6, 28:6-8; Dawson TT, 1/12/05, 9920:19-21; 2025864882-4895 (US 86140).
195. Representatives of all the Defendants, including BATCo and Philip Morris Companies, Inc., as well as representatives of several international organizations (including TAC, INFOTAB, and ICOSI) (explained in detail infra) attended the College. 1000019640-9647 (US 86149*); 1000019649-9651 (US 86150); 2501290388-0396 (US 86156); TI16740660-0663 (US 72403); 503908538-8538 (US 29737); TI16740660-0663 (US 72403); 503908538-8538 (US 29737); TI04962210-2211 (US 67250); TI16740652-0659 (US 86168); TI16740741-0749 (US 86169); TI04962337-2341 (US 86170); (US 65473); TIFL0071151-1151 (US 86176); TIFL0071174-1174 (US 86142); TIFL0071152-1154 (US 86177); TIFL0071200-1202 (US 86178); TIFL0072275-2277 (US 86180); TI16740614-0616 (US 86181); TI11961414-1414 (US 86182); TIFL0072290-2303 (US 86183); 87645518-5522 (US 86184); TIFL0068394-8402 (US 86185); TI11961377-1377 (US 86186); TIFL0071027 (US 77029); Merryman PD, Florida v. American Tobacco, 7/25/97, 148:9-13.
196. Students who attended the College sessions were "people from the tobacco industry;" people whose responsibilities included public affairs, public relations, government relations; "[p]eople from all facets of the industry from seed bed to sales counter;" and industry lobbyists. Merryman PD, Florida v. American, 7/25/97, 148:17-149:8; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 145:2-13.
197. In accordance with the goal of achieving a unified public message for the industry, Walker Merryman, self-proclaimed "Dean of the College of Tobacco Knowledge" and also Vice President of Public Relations for the Tobacco Institute, gave presentations at the College during which he would "roam the room with a microphone and ask people questions [about what they had heard and learned over the two days] and see how they answered them." Merryman PD, Florida v. American, 7/25/97, 151:12-152:18; Merryman PD, Richardson v. Philip Morris, 4/9/98, 87:15-88:7; TI16740590-0593 (US 86148). For example, he might ask a student if he believed that there was a relationship between smoking and disease, and suggest that the better response was that "there is a statistical relationship between smoking and disease" rather than that "smoking causes disease." Merryman PD, Florida v. American, 7/25/97, 153:16-156:10.
198. The purpose of the Tobacco Institute College of Tobacco Knowledge was to "improve working relations with all major segments of the tobacco industry." Dawson WD, 28:6-8. For example, Brennan Dawson participated in a mock segment of "The Phil Donahue Show" titled "Should Smoking Be Restricted in the Workplace?" during the 1988 College of Tobacco Knowledge conference, playing the role of Tobacco Institute spokesperson while James Savarese played Donahue and they acted out a reaction on behalf of the tobacco industry to a Surgeon General's Report on the subject of ETS. Again, the College's intended purpose with the rehearsal was always to ensure presentation of a unified and consistent public stance on smoking and health issues. Dawson WD, 29:6-30:1.
199. The College of Tobacco Knowledge "gave attendees an overview of a number of issues that the tobacco industry faces or faced at the time." Merryman PD, Florida v. American, 7/25/97, 147:16-148:2; Chilcote PD, Richardson v. Philip Morris, 9/21/98, 259:8-261:10; Duffin PD, Munn, 1/7/87, 187:3-190:25. The Tobacco Institute not only funded and operated the College of Tobacco Knowledge, it also developed the College's curriculum and its staff taught the sessions. Dawson WD, 26:16-21; Zahn PD,Massachusetts v. Philip Morris, 5/28/98, 147:14-18; Chilcote PD,Richardson v. Philip Morris, 9/21/98, 261:11-15; Duffin PD, Munn, 1/7/87, 187:3-190:25.
200. After Tobacco Institute executives Merryman, Kloepfer, and Chilcote approved the curriculum, the Tobacco Institute mailed announcements to its Communications Committee, the International Tobacco Information Center ("INFOTAB"), its senior staff, and other interested parties. TIFL0071011-1012 (US 86141); TIFL0071174-1174 (US 86142). In preparing for a College session, the Tobacco Institute would make its
senior vice presidents aware of the fact that one of these seminars was scheduled. And if they had new employees that they wanted to have invited or if they thought there was a contract lobbyist who might benefit, they could invite that individual. We also would let our member companies know that another seminar was scheduled, and if they had people in mind whom they thought would benefit from such a seminar, they could be invited.
Merryman PD, Florida v. American, 7/25/97, 149:9-150:3; 85701033-1033 (US 86143), 85701041-1042 (US 86144); TIFL0069155-9155 (US 86145); TIFL0069161-9161 (US 86146).
201. A number of speakers generally spoke on a "half dozen or more different issues." Merryman PD, Florida v. American, 7/25/97, 157:24-158:2. Speakers at the College sessions included Tobacco Institute employees with specialities in communications, public relations, and federal and state regulation; lawyers for the industry; medical consultants; state senators or representatives; economists; and statisticians. Merryman PD, Florida v. American, 7/25/97, 158:5-159:5; Rupp WD, 39:20-40:3.
202. The Enterprise wanted to achieve consistent public statements concerning various smoking and health related subject areas through its control of the College's curriculum. For example, there were frequent discussions at the College about the health hazards of smoking and of causation generally and how, according to the industry, causation had not yet been proven. Merryman PD, Florida v. American, 7/25/97, 159:13-160:4; 1000019640-9647 (US 86149*); TIFL0068950-8955 (US 86163).
203. The College's curriculum also included the topic of industry sponsored research and the function of CTR generally. For example, presentations by Leonard Zahn, CTR public relations counsel, would describe the activities of CTR and its research program "so that all the mid and perhaps slightly above mid-level employees from the various companies would have an idea, more exact knowledge, of what the Council was and how it worked." Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 145:14-146:11, 149:25-150:10; TI04962331-2334 (US 86167); TI04962389-2389 (US 62201); TI04962390-2398 (US 62202); TIFL0068387-8387 (US 77028). In addition, Zahn distributed or made available to the participants CTR materials including the Annual Report. Zahn PD,Massachusetts v. Philip Morris, 5/28/98, 148:8-20.
204. Similarly, Addison Yeaman, CTR Chairman and President, spoke on the topic of sponsoring science, described in the syllabus as follows:
For 25 years, tobacco manufacturers, growers and warehouse operators have funded independent scientific research into tobacco use and health. How it is done and what is being learned.
1000019640-9647 (US 86149*).
205. In addition to discussing the function of CTR, the College provided another opportunity for the Tobacco Institute and CTR to coordinate Enterprise activities. In a letter dated October 27, 1981, William Hobbs, CTR Chairman, wrote that CTR representatives "Tom Hoyt and Bob Gertenbach will attend T.I.'s College of Tobacco Knowledge November 16 and 17" providing an opportunity for the Tobacco Institute's Horace Kornegay to brief the CTR President and Executive Vice President on "T.I.'s advertising and research plans" because "it might be beneficial to CTR management." 503908538-8538 (US 29737).
206. Another topic frequently discussed at the College was Environmental Tobacco Smoke ("ETS") and the failure to determine its true health effects on nonsmokers. 1000019640-9647 (US 86149*); TIFL0068913-8926 (US 86159); TIFL0068913-8926 (US 86159); TIFL0068939-8939 (US 86161). Industry ETS consultants like Nancy Balter, John Graham and "Gray" Robertson also explained their opposition to public smoking restrictions. TIFL0071152-1154 (US 86177); TIFL0071200-1202 (US 86178).
207. The College curriculum also included an "international perspective" on smoking and health related issues. For example, Mary Covington, Secretary General of INFOTAB, spoke at the November 1981 College about international perspectives related to ETS, explaining that the College
seminars offer an opportunity to learn a lot about smoking issues and industry programs in a very short time. . . . Without a concerted effort by the tobacco industry [initiatives to eliminate smoking in public places] will make gradual headway in changing attitudes towards smoking as a socially acceptable custom.
2501029891-9901 (US 20557).
208. The topic of public relations was woven into each of the subject areas discussed above in order to achieve a consistent public message. For example, at both 1983 sessions of the College, William Kloepfer of the Tobacco Institute spoke to the students on public relations issues. In addressing the issue of the "effectiveness and unity" of the tobacco industry, Kloepfer contended that because "what affects one affects all," the Tobacco Institute used many strategies "to keep us together, to keep us all aware." According to Kloepfer, the Tobacco Institute Public Relations Division was primarily responsible for four strategies: the Tobacco Institute Tobacco Observer newspaper reaching 150,000 readers six times a year; advertising in tobacco trade publications; appearing as speakers before trade and industry groups; and the Tobacco Institute College of Tobacco Knowledge that has helped "educate" and "orient hundreds of key family members . . . a united industry is our most potent public relations and legislative tool." TI04962436-2454 (US 86172); TIFL0526112-6125 (US 62625).
209. In addressing the issue of public smoking restrictions, Kloepfer noted that
through our spokesmen, our literature, and our advertising, we broadcast two messages: (1) ambient smoke has not been proven dangerous to non-smokers, and (2) smoking restrictions cause unnecessary expense, inconvenience, and discrimination.
TI04962436-2454 (US 86172); TIFL0526112-6125 (US 62625). In addressing "our oldest, most frustrating issue," Kloepfer maintained, as late as 1983, that
We call it the primary issue. It is the smoking and health controversy. We think of it as controversy . . . a subject far from decided . . . and through our spokesmen and literature we make that point.TI04962436-2454 (US 86172); TIFL0526112-6125 (US 62625).
210. Finally, indications from those who attended the College were that the Enterprise, via the Tobacco College of Knowledge, was achieving its goal of uniting the industry and promoting a common public response to issues related to smoking and health. For example, Arthur Stevens, General Counsel for Lorillard, sent comments from the Lorillard attendees at one session to the Tobacco Institute. 03022004-2008 (US 86157); 85676573-6577 (US 86158). One employee wrote, "The information presented gave me a better view of the defensive position in which our industry finds itself." 03022004-2008 (US 86157); 85676573-6577 (US 86158). Similarly, in feedback after the September 1980 session regarding whether or not the College of Tobacco Knowledge was worthwhile, one Lorillard attendee wrote:
Definitely — The opportunity to meet with the pros, who fight in the trenches, was an experience which expanded my knowledge and commitment to our mutual goals.
85700954-0955 (US 86162). Further commentary by Lorillard attendees on the Seventh College included:
[A]fter the program was completed, I definitely have a better understanding of the industries [sic] position in certain areas . . . past attendees should be updated whenever the industries [sic] stand on a position changes or new information is available, especially in the overall smoking and health controversy.
85180845-0846 (US 86164); 85700895-0895 (US 86166).
211. In addition to the formal training received by Defendants' employees on the industry position in smoking and health matters at the Tobacco Institute's College of Tobacco Knowledge, industry lawyers also informally instructed tobacco company employees on the industry's smoking and health positions. For example, Jeffrey Wigand, former Vice President of Research and Development of B W, shortly after starting to work for B W, was sent to the law offices of Shook, Hardy Bacon in Kansas City, Missouri, for an orientation. Shook, Hardy Bacon attorneys William Shinn, Robert Northrip and Charles Wall instructed Wigand on the tobacco industry position on causation and addiction. Scott Appleton, a B W toxicologist, also attended a training session at Shook, Hardy Bacon. Wigand WD, 29:26-30:10.
6. Tobacco Institute Testing Laboratory
212. In June 1966, the Federal Trade Commission ("FTC") announced that it was establishing a laboratory to measure by machine the tar and nicotine content of cigarette smoke. That same year, the tobacco industry decided to establish its own laboratory, the Tobacco Institute Testing Laboratory ("TITL"), which would be a separate division of the Tobacco Institute. The TITL was established so that Defendants could conduct tests to determine the accuracy and reliability of the FTC laboratory's tests. The TITL was also used by Defendants for other testing purposes, such as the testing of the chemical Chemosol in the late 1960s and early 1970s. 500500320-0323 (US 20633); TIMN267142-7143 (US 21353); TIMN267120-7121 (US 21351). Murray Senkus, Director of Research at RJR, acknowledged that TITL was a "Mechanism for Mutual Cooperation" within the Tobacco Institute. 500500320-0323 (US 20633); TITL0003363-3374 (US 21931); TIMN267142-7143 (US 21353); TIMN267120-7121 (US 21351); TITL0003108-3111 (US 21597); 01246525-6537 (US 34516).
E. Joint Research Activity Directed by Defendants' Executives and Lawyers
1. Witness Development
213. Defendants Philip Morris, Reynolds, Lorillard, Liggett, B W, American, CTR, and the Tobacco Institute developed a variety of joint research projects that were dubbed Special Projects. These projects assumed numerous forms and names, including CTR Special Projects, Lawyers Special Projects (projects paid through Lawyers Special Accounts), and Tobacco Institute Special Projects. These projects were exclusively funded by these particular Defendants. The main purpose of these projects, which were primarily lawyer-developed, directed, and supervised, was to obtain and develop witnesses favorable to Defendants for testimony before Congress and other regulatory bodies, for use in litigation, and for support of industry public statements.
214. TIRC/CTR through its "Special Projects" allocated funding on a non-peer reviewed basis for research projects associated with litigation and witness preparation, Brandt WD, 127:20-22, and were not designed to address smoking and health issues in a way that would be helpful to increasing public knowledge about smoking and disease.
215. Special Projects were overseen by the main members of the Committee of Counsel, i.e., the General Counsels of Defendants Philip Morris, Reynolds, Lorillard, Liggett, B W, and American. Stevens WD, 6:13-21; 2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902); 01124376-4421 (US 26394); 01124445-4445 (US 26400).
216. The Committee of Counsel received frequent updates on Special Projects. 1005061626-1626 (US 35960); 1005061615-1615 (US 35958); 1005061616-6125 (US 35959); 1005061626-1626 (US 35960); 680305856-5858 (US 30887); 2501190758-0759 (US 20562).
217. Special Projects were often managed by yet another committee called the Ad Hoc Committee. The Ad Hoc Committee consisted of in-house counsel, litigating lawyers, and other agents such as public relations and research representatives of Defendants directed to conduct long range policy planning with respect to research and witness development. 2045752106-2110 (US 20467); 1003718428-8432 at 8429 (US 35902).
218. The focus on witness development, as opposed to scientific research, is illustrated in a letter dated October 28, 1966, where attorney Francis Decker advised David Hardy of Shook, Hardy Bacon on the status of certain Ad Hoc matters. He stated,
Dr. Pratt is presently only available on a limited basis. However, we intend to try to develop him as a possible witness. . . . Dr. Soloff made the remark about the finding that the non-smoker and ex-smoker have the same incidence of heart disease. Nonetheless, I think he could be an excellent witness. To begin with, I think he might be persuaded that the validity of the above statement is questionable.
1005105988-5990 (US 36020).
219. In January 1967, the Ad Hoc Committee was comprised of: (1) Janet C. Brown, Chadbourne Parke, counsel to American and CTR; (2) Kevin L. Carroll, White Case, counsel to B W; (3) Donald J. Cohen, Webster, Sheffield, Fleischmann, Hitchcock Chrystie, counsel to Liggett; (4) Edward J. Cooke, Jr., Davis, Polk Wardell, counsel to Reynolds; (5) Francis Decker, Webster, Sheffield, Fleischmann, Hitchcock Chrystie, counsel to Liggett; (6) Alexander Holtzman, Conboy, Hewitt, O'Brien Boardman, counsel to Philip Morris; (7) Edwin J. Jacob, Jacob, Medinger Finnegan, counsel to CTR, B W, and Reynolds; and (8) William W. Shinn, Shook, Hardy, Ottman, Mitchell Bacon (later "Shook, Hardy Bacon"), counsel to Philip Morris, Lorillard, B W, and Reynolds. 2015059690-9697 (US 20309).
220. At times, members of the Ad Hoc Committee and the Committee of Counsel held joint meetings to keep Defendants informed as to the status of joint research matters related to the enterprise, particularly "industry legislative" and litigation positions. BWX0000007-0007 (US 59828).
221. On December 17, 1965, at a meeting of the "Committee of Six [i.e., the Committee of Counsel]," representatives of at least CTR, B W, and Reynolds, and outside counsel met to discuss CTR and Ad Hoc special projects in relation to the need for industry witness development. 95522182-2185 (US 56821); RC6033491-3496 (US 86225); 01124441-4444 (US 20034).
222. In a follow-up letter dated January 4, 1966, attorney John Russell of Perkins, Daniels McCormack informed J.E. Bennett, President of Lorillard:
As you are aware, the lawyers have, together with the staff of Council for Tobacco Research, been reviewing our industry's research program with a view toward developing some sort of a master plan.
Russell advised that there were three categories of research: "A. Adversary needs (Congress, litigation, etc.); B. Defensive needs; and C. Basic research." He further advised that some projects would be paid through Lawyers' Special Accounts and some out of CTR. 01124445-4445 (US 26400).
223. An April 12, 1966 Reynolds document describing the mission of the Tobacco Institute discussed Defendants' goals including witness development in upcoming health litigation. The document stated that the authorization and purpose of CTR Special Projects and Ad Hoc Committee lawyer projects was to assure efficient handling of medical evidence and to provide the industry with witnesses for health litigation. 502645038.S-5038.Z (US 23053).
224. David Hardy, partner at Shook, Hardy Bacon, played a major role in Defendants' witness development plans to perpetuate the Enterprise's "open question" position. Hardy worked to secure possible witnesses for future litigation throughout the 1960s. For example, in a January 12, 1967 letter to the Ad Hoc Committee, he requested evaluations of potential industry witnesses. In the same letter, Hardy asked Ad Hoc Committee members to analyze the value of various CTR and Ad Hoc projects in an effort to get practical use out of them in time for expected Congressional hearings. 2015059690-9697 (US 20309).
225. A February 8, 1967 letter to Hardy from Donald Cohen and Francis Decker, attorneys with Webster, Sheffield, Fleischmann, Hitchcock Chrystie, responded to Hardy's request for comments and evaluations of potential industry witnesses. It addressed many areas of possible testimony in great detail and provided names of doctors and scientists, many of whom were CTR Special Projects recipients and funded by various Defendants in later years. Cohen and Decker stated that Defendants' witnesses
should describe the unexplained paradoxes in the cigarette smoke theory of disease causation. [They] should present the idea that the statistics are as consistent, if not more so, with the constitutional theory as with the cigarette smoking theory.
Cohen and Decker also recommended that doctors and scientists who had received CTR grants-in-aid and CTR Special Project funding be used as potential witnesses. 1005154422-4435 at 4425 (US 20228).
226. William Shinn of Shook, Hardy Bacon also responded to Hardy's request, with copies to members of the Ad Hoc Committee, regarding potential witnesses for Defendants in upcoming congressional hearings. 1005154472-4479 (US 20229); 2015059690-9697 (US 20309).
227. Similarly, on March 31, 1967, Robert Hockett, on behalf of CTR, sent a memorandum to Hardy describing Adolphe D. Jonas, a psychiatrist who had worked on the psychology of smoking. In this memorandum, Hockett mentioned Jonas as a potential industry witness. 2015034120-4121 (US 20319).
228. When a scientist was willing to act as a witness in litigation or before congressional hearings on behalf of the Enterprise, her work was often funded by CTR Special Projects. For example, on October 3, 1968, in an attempt to funnel names to Hardy as potential witnesses before awarding industry funding to scientists, Alexander Holtzman, General Counsel of Philip Morris, wrote a letter proposing CTR Special Project funding for Richard Hickey. Hickey's application to CTR for $30,000 had previously been turned down, but Holtzman stated that
Dr. Hickey is willing to prepare a statement for Congress provided that he is put in a position to complete the analysis of data which he has in-hand and he would, in my opinion, make an excellent witness.
1005084784-4786 at 4784 (US 22988). Holtzman also wrote that
I think we might be able to persuade him to make additional observations in these papers concerning the implications of his data in relation to the Public Health Service view on the smoking question.Id.
229. Similarly, a November 17, 1978 Philip Morris memorandum noted that "CTR has supplied spokesmen for the industry at Congressional hearings. The monies spent at CTR provides a base for introduction of witnesses." 2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902).
230. An industry document written by "A.H." (very likely Alexander Hotzman), describing what transpired at a General Counsels' meeting at the offices of Philip Morris on January 4, 1978, at which representatives from B W, Liggett, Reynolds, the Tobacco Institute, and Philip Morris were present, demonstrated the development of Special Account No. 4 (a specific type of Lawyers Special Accounts, discussed at Section III(E)(3)(b),infra) to address Defendants' need for witnesses. The Enterprise used Special Account No. 4 to fund researchers and scientists and to pay fees to consultants who could offer expert knowledge to Defendants and act as witnesses on their behalf. Recipients of such funding were sought out by Defendants' attorneys based on how helpful they would be in future litigation and congressional hearings. Funds were allocated accordingly. Discussions and details of the lawyers' special projects were to be kept confidential. In this same document describing what occurred at the January 4, 1978 meeting, attendees were advised not to discuss the details of Special Account No. 4 in writing, and instead discuss any questions on the matter in a phone call. No response to a letter within a given date was assumed to mean that "the matter [was] agreeable." BWX0004364-4375 US 36228); 03658901-8901 (US 20061); LG2024193-4196 at 4196 (US 21212).
231. In a February 9, 1978 letter to Thomas F. Ahrensfeld, General Counsel for Philip Morris; Max H. Crohn, Jr., General Counsel for Reynolds; Joseph Greer, General Counsel for Liggett; Arnold Henson, an attorney with Chadbourne Parke; Ernest Pepples, General Counsel for B W; and Arthur J. Stevens, General Counsel for Lorillard, William Shinn of Shook, Hardy Bacon wrote of the
need for special areas of research with due regard for the politics of science, the importance of developing witnesses and the need for a responsive mechanism to meet unfounded claims made about tobacco.
In this document, Shinn recommended approval for funding of projects through Special Account No. 4 and CTR Special Projects. Once again, recipients of this letter were reminded not to retain notes on matters of witness development. 503655086-5088 at 5087 (US 20720); 503655086-5088 (US 75190).
232. By at least the late 1970s, the Tobacco Institute and its agents became coordinators in Defendants' efforts to develop a group of witnesses for future litigation and hearings. An August 30, 1978 letter from Ernest Pepples of B W to Richard Maddox of BATCo discussed the request of Horace Kornegay, President of the Tobacco Institute, that the Committee of Counsel be involved in selecting and providing scientific witnesses and documentary testimony for use in hearings before Congress and elsewhere. During its years as an active trade association, the Tobacco Institute prepared or provided over 100 witnesses for testimony before Congress, courts or state legislatures. 681725305-5307 (US 21019); USX6390001-0400 at 0335 (US 89555).
233. A March 11, 1980 document drafted by Max Crohn of Reynolds acknowledged that longtime CTR Special Project and Special Account No. 4 recipient Theodor Sterling was "one of our industry's most valuable outside assets." In addition to numerous publications and studies, Crohn noted that "[Sterling] has continued to be one of the primary scientists available for consultation with Shook Hardy Bacon in Kansas City." 503645463-5463 (US 29696).
234. A 1983 letter from Ernest Pepples of B W to Jim Bowling of Philip Morris and Alexander Spears of Lorillard attached "a paper proposing recommendations which we might make to the [Tobacco Institute] Executive Committee." 80419202-9202 (US 21061). The attached paper titled "Industry Research Support — Recommendations" listed the following among its considerations for upcoming scientific funding:
Be prepared to increase scientific funding of special projects to resolve scientific problems and develop witnesses. . . .
Maintain company cooperation — philosophies about research may differ at times, but goals should be the same. . . .
Improve cooperation between industry mechanisms such as CTR and TI.
80419203-9203 (US 21062).
235. In a February 2, 1984 memorandum written by Arthur Stevens, General Counsel for Lorillard, to Alexander Holtzman, General Counsel for Philip Morris; Ernest Pepples, General Counsel for B W; Josiah Murray, General Counsel for Liggett; and Samuel Witt, General Counsel for Reynolds, Stevens discussed the intent of the Ad Hoc Committee to "propose a witness development plan" to assist the litigation and regulatory efforts of the member companies. 85687269-7270 at 7269 (US 21081).
236. An April 7, 1986 letter from Patrick Sirridge, Shook, Hardy Bacon, to Alexander Holtzman, General Counsel for Philip Morris; Wayne W. Juchatz, General Counsel for Reynolds; Josiah J. Murray, III, General Counsel for Liggett; Ernest Pepples, General Counsel for B W; Paul A. Randour, General Counsel for American; and Arthur J. Stevens, General Counsel for Lorillard, informed CTR Board members that Shook, Hardy Bacon would take over both the administration of Special Account No. 4 from Jacob, Medinger Finnegan and the submission of research proposals for CTR Special Projects. According to this letter, Shook, Hardy Bacon anticipated higher funding requests for "certain witness development expenses incurred by national litigation counsel." 507877173-7174 at 7173 (US 20800).
237. Another long-time industry law firm involved in witness development was Wachtell, Lipton, Rosen Katz. An April 28 memorandum from attorney David Murphy to attorneys Herbert Wachtell, Paul Vizcarrondo, Jr., and John Savarese described an issue that had arisen at Lorillard. Arthur Stevens and William Allinder of Lorillard wanted to know if Lorillard could "participate in funding through a Shook, Hardy special account the work of a Georgetown pathologist, Bennett Jensen." Murphy reported that he had been advised that Jensen had received CTR Special Project funding in 1988, and now faced problems at Georgetown because of his ties to the tobacco industry. Shook, Hardy Bacon proposed to
"give him" $40,000 — not for specific research . . . or with an eye to publication but solely in order to maintain a good relationship with him and secure his continued help in making contact with other scientists.
Murphy also reported that "Allinder admits that Shook, Hardy wants to give Jensen money to keep him happy and that there is no immediate value to his research." Jensen, however, was a potential witness in the Haines litigation and his contacts "could lead to legislative witnesses." 87715635-5636 (US 21101). Indeed, Robert Northrip, an attorney with Shook, Hardy Bacon, acknowledged that one of the benefits of Special Projects was preserving the good will of former witnesses. Northrip WD, 10:6-11:2; Northrip TT, 9/30/04, 01366:7-01367:25; ATX9275490271-0280 at 0273 (US 36231).
2. CTR Special Projects
a. Nature of CTR Special Projects
238. CTR Special Projects were a separate category of research projects funded by CTR. Unlike the grant-in-aid category of research, CTR Special Projects were not screened by the CTR Scientific Advisory Board ("SAB"); instead the process was directed by the General Counsels of Philip Morris, Reynolds, Lorillard, Liggett, B W, and American, as well as attorneys at outside law firms including Jacob, Medinger Finnegan, and Shook, Hardy Bacon. The work was specifically commissioned for possible use in litigation. Stevens WD, 13:22-16:16, 17:20-18:8; Juchatz TT, 11/22/04, 06736:17-06748:17, 06754:8-06782:3; (US 87024); McAllister WD, 159:12-14, 161:23-162:25; McAllister TT, 3/21/05, 16171:22-16175:13; Sommers PD, Arch v. American, 7/14/97, 49:7-9; see also Rupp WD, 38:1-8; Northrip TT, 9/30/04, 01369:25-01374:16, 01374:17-01375:3; Lisanti PD, Engle v. Reynolds, 8/13/97, 86:8-21; USX6390001-0400 (US 89555).
239. Because of the lawyer involvement and the lack of review by the SAB, there was recognition that CTR Special Projects did not constitute the independent research promised in the Frank Statement. Janet Brown, retained counsel for CTR, acknowledged the problem in a letter to David Hardy dated June 13, 1974:
Where the industry is itself the arbiter of the amount and nature of research to be done, however, arguments that the research is self-serving — that is, is too little, too late, does not bear reasonable relation to the nature and scope of the problems nor to the industry's market position, sales, profits, advertising expenditures — gain in force and acceptance. Moreover, the industry may have little, if any leeway to disassociate itself from any results of such research with which it does not agree.
03659023-9025 at 9025 (US 87177).
240. From 1966 to 1990, Defendants contributed the following amounts to CTR Special Projects: American — $2,049,354; B W — $2,571,354; Lorillard — $1,638,490; Philip Morris — $5,837,923; and Reynolds — $6,029,255. From 1966 to 1975, Liggett contributed approximately $144,000. DXA0630917-1033 at 1024 (US 75927).
241. Although Liggett withdrew from CTR in 1968, it continued to participate in CTR Special Projects. Stevens, WD, 17:14-19. Indeed, in its January 8, 1968 resignation letter, Liggett's President stated "we will continue to participate in defraying the cost of [CTR] Special Projects sponsored by the Council after evaluation of each Project on an individual basis." CTR-TIRC MIN000238-0244 at 0241 (US 33023).
242. Like CTR grants-in-aid, CTR Special Projects involved research into epidemiology, laboratory work, and animal experimentation. However, they were regarded by at least one prior Scientific Director of CTR as "soft science," which would not appeal to the CTR SAB. Sommers PD, Arch v. American Tobacco, 7/14/97, 49:7-24; 7/15/97, 215:22-24, 216:2-6.
243. CTR Special Projects allowed participating tobacco manufacturers access to papers and statements by scientists before they were submitted for publication to journals or to regulatory bodies. See e.g., US 34088; 62774. Special Project funding also allowed Defendants to have some say in publications resulting from such funding. See e.g., US 20469.
244. The lawyers who coordinated, requested and monitored CTR Special Projects were not scientists and did not have scientific backgrounds. The lawyers wished to avoid the CTR SAB method of funding because the SAB evaluated its project-funding requests in part for scientific legitimacy, while the lawyers were focused on litigation and liability objectives. Hoel PD, United States v. Philip Morris, 6/27/02, 58:20-59:19.
245. In the mid-1960s, Shook, Hardy Bacon developed a smoking and health literature retrieval system within the firm to help the lawyers identify scientists friendly to the tobacco industry's liability positions so that these scientists could receive funding through the CTR Special Projects program. Hoel PD, United States v. Philip Morris, 6/27/02, 61:10-62:7, 62:11, 63:11-20.
246. An April 14, 1967 memorandum from Addison Yeaman, Vice President and General Counsel of B W, addressed to Frederick Haas, General Counsel for Liggett; Cyril Hetsko, General Counsel for American; Henry Ramm, General Counsel for Reynolds; Paul Smith, Associate General Counsel for Philip Morris; and Earle Clements, President of the Tobacco Institute, explained how SAB projects had been "deliberately isolated" from lawyer-directed projects:
We have deliberately isolated the SAB from those areas of research which they might consider were of a controversial or adversary nature and I see no reason why that isolation cannot and should not be maintained to the fullest preservation of the scientific integrity and dignity of the SAB, but with the release of funds from the SAB portion of CTR's budget to both research directly related to tobacco and the so-called Special Projects.
670307892-7894 (US 20967).
247. A February 24, 1969 Lorillard memorandum also described the origin of CTR Special Projects:
For a number of years, certain representatives of the industry have felt that the work of the Council [for Tobacco Research] has not been as pertinent to our problems as it might be. . . . In an effort to meet this objection, in 1965 the Council embarked on a program of guided research. . . . In order to finance this phase of their activity, a special projects budget was developed.
044227839-7844 (US 20066).
248. An April 18, 1980 memorandum to file by Arthur Stevens stated: "I concluded that this work [of CTR Special Project recipients Kuper and Janis] is potentially useful from a litigation point of view." 01336290-6290 (US 88436).
249. A September 18, 1981 letter from Francis Decker, an attorney with Webster Sheffield, to Joseph Greer, Vice President and General Counsel for Liggett, enclosed his notes from a September 10, 1981 meeting of the Committee of Counsel. Decker's notes described a discussion between Arthur Stevens, General Counsel for Lorillard, and Edwin Jacob, CTR attorney with Jacob, Medinger Finnegan, noting the differences between CTR Special Projects and Lawyers Special Projects:
Stevens: "I need to know what the historical reasons were for the difference between the criteria for lawyers' special projects and CTR special projects."
* * *
Jacob: "When we started the CTR Special Projects, the idea was that the scientific director of CTR would review a project. If he liked it, it was a CTR Special Project. If he did not like it, then it became a lawyers' special project."
Stevens: "He took offense re scientific embarrassment to us, but not to CTR."
Jacob: "With Spielberger, we were afraid of discovery for FTC and with Aviado, we wanted to protect it under the lawyers. We did not want it out in the open."
LG2000741-0750 at 0745-0746 (US 36269).
250. A 1984 document prepared by Lee Stanford of Shook, Hardy Bacon to David Hardy of Shook, Hardy Bacon, concerning the briefing of Alex Spears of Lorillard for a deposition, discussed CTR Special Projects. The document acknowledged that "[t]hese are initiated and developed through outside counsel (SHB and J M)." 92456261-6268, (US 75420).
251. A document prepared in or about 1992 titled "Funding Sources of Tobacco Industry Research" noted that CTR Special Projects were" — Research directed at industry problem — Witness development objective-Approved by general counsel — Funded through CTR." 01334642-4655 (US 34528).
252. An April 28, 1992 Wachtell Lipton memorandum from attorney David Murphy to attorneys Herbert Wachtell, Paul Vizcarrondo, Jr., and John Savarese discussed the nature of CTR Special Projects and raised the spectre of "perpetrating a fraud on the public":
In my overcautious view, the Jensen issue raises a larger question — whether "CTR Special Projects" funds (and after such activities were moved out of CTR, joint industry funds administered through Shook, Hardy) were used to purchase favorable judicial or legislative testimony, thereby perpetrating a fraud on the public. Admittedly, this notion of fraud was unknown to the common law, but if we assume the other side of the looking glass . . . perhaps it is cause for concern.
87715635-5636 (US 21101).
b. Lawyers' Involvement with CTR Special Projects
253. Attorneys at Jacob, Medinger Finnegan and Shook, Hardy Bacon kept the Committee of Counsel apprised of the status of CTR Special Projects and also made recommendations to Defendants' General Counsels and to each other as to whether projects should be conducted through CTR Special Projects. TIMN261386-1387 (US 21288); 1005048374-8374 (US 35939). See also Lisanti PD, Arch v. American Tobacco, 6/10/97, 80:9-81:19, 82:10-19.
254. For example, on May 19, 1967, William Shinn of Shook, Hardy Bacon, sent a letter to Alexander Holtzman, Philip Morris General Counsel, regarding CTR Special Projects. He discussed a proposal to support and publicize research advancing the theory of smoking as beneficial to health as a stress reducer, even for "coronary prone" persons; represented that stress (rather than nicotine addiction) explains why smoking clinics fail; and proposed to publicize the "image of smoking as 'right' for many people . . . as a scientifically approved 'diversion' to avoid disease causing stress." 1005083882-3882 (US 20204).
255. On February 5, 1974, Shinn sent a letter to the following General Counsels: Thomas Ahrensfeld of Philip Morris; DeBaun Bryant of B W; Frederick Haas of Liggett; Cyril Hetsko of American; Henry Roemer of Reynolds; and Arthur Stevens of Lorillard, stating that "Dave Hardy and I strongly recommend approval of the $50,000 grant for Dr. Carl D. Seltzer's work as a CTR special project" at Harvard University, citing the valuable research he was conducting and the works he had already published relating to smoking and health, which were helpful to the industry. 1005108380-8381 at 8381 (US 20209).
256. On June 3, 1986, Patrick Sirridge of Shook, Hardy Bacon sent a letter to the following General Counsels: Alexander Holtzman of Philip Morris; Wayne Juchatz of Reynolds; Josiah Murray of Liggett; Ernest Pepples of B W; Paul Randour of American; and Arthur Stevens of Lorillard, recommending approval for additional funding of Henry Rothschild through CTR Special Projects. 507878840-8840 (US 20802).
257. Such industry attorney recommendations continued into the 1970s and 1980s. LG2000429-0430 (US 34067); 1005083560-3561 (US 35991); LG2002513-2514 (US 34076); 1005070386-0387 (US 35981); 1005108380-8381 (US 20209); MNATPRIV00012777-2778 (US 86233); 503655086-5088 (US 20720); 03638976-8979 (US 20060); 03638976-8979 (US 46483); 01335398-5398 (US 26488); 507731976-1976 (US 86273); 521032586-2588 (US 85746); 01335965-5966 (US 26516); 01335571-5571 (US 26498); 03754226-4227 (US 29343); 01338391-8392 (US 26567); 01337575-7576 (US 26552); 1005125797-5798 (US 36097); 505741621-1622 (US 86245); BWX0003772-3773 (US 36199); 503645740-5741 (US 29699); 504339396-9397 (US 29751); BWX0002772-2773 (US 36171); 521030035-0036 (US 30458); 1005125390-5391 (US 36091); BWX0002884-2885 (US 36182); 1005125300-5301 (US 36089); 03747448-7449 (US 29327); ATX9277370208-0209 (US 36233); 503645752-5753 (US 29700); 1005064666-4667 (US 35973); LG2002762-2763 (US 34086); BWX0004202-4202 (US 36222); 507731371-1371 (US 86250); 1005064678-4679 (US 35975); 521032115-2116 (US 30470); 503645128-5129 (US 86251); 1005064711-4712 (US 35977); BWX0003460-3461 (US 36192); 1005064646-4647 (US 35972); 503566273-6274 (US 86253); 521031847-1848 (US 30466); 1005064594-4595 (US 35969); BWX0002886-2887 (US 36183); 503655382-5383 (US 86254); 503655216-5217 (US 86255); BWX0002866-2867 (US 36180); 1005064627-4628 (US 35971); BWX0002893-2894 (US 36185); 503653937-3938 (US 86256); 507731344-1344 (US 29862); 521029712-9713 (US 30451); 1005064547-4548 (US 35967); 503645684-5685 (US 86257); BWX0002888-2889 (US 36184); 521030984-0985 (US 86259); 507734475-4476 (US 86261); 507732105-2106 (US 86262); 507734379-4380 (US 29905); 507731548-1549 (US 86266); 507734458-4458 (US 86267); 507731658-1659 (US 86269); 507731764-1765 (US 86270); 507731469-1470 (US 86271); 507731758-1758 (US 29896); 507731648-1648 (US 29888); 507731575-1576 (US 86275); 507731487-1487 (US 86276); 507731973-1973 (US 86278); 507875993-5993 (US 22692); ATX300010994-0995 (US 22694); 521031106-1107 (US 22696); 01336194-6195 (US 22697); 01338089-8089 (US 22701); LG2000678-0679 (US 22703); 1005064682-4683 (US 35976); 03751975-1976 (US 29340); 03747528-7528 (US 29328); 01336110-6113 (US 26519); 1005064561-4561 (US 35968); 01335579-5579 (US 26499); 2015029385-9385 (US 36639); 01336499-6500 (US 26535); 507877111-7112 (US 88438); 86003017-3018 (US 56084); 01335472-5472 (US 26493); 01338515-8517 (US 26570); 01334899-4899 (US 26474); 01331881-1881 (US 26467); 503655440-5441 (US 29711); 01336191-6192 (US 26522); TLT0270555-0555 (US 85619); 03751370-1372 (US 29331); 01335959-5959 (US 26514); 01335967-5968 (US 26517); 521032312-2314 (US 30472); 1000781727-1727 (US 35321); 1005125129-5130 (US 36084).
258. In-house counsel also made recommendations for CTR Special Projects. On October 3, 1968, Alexander Holtzman of Philip Morris sent a letter to David Hardy of Shook, Hardy Bacon proposing that Richard Hickey, who had previously applied for funding through CTR but been rejected, receive Special Project funding. On October 21, 1968, Hardy endorsed that recommendation by sending a letter to Frederick Haas of Liggett; Cyril Hetsko of American; Henry Ramm, General Counsel for Reynolds; Paul Smith, General Counsel for Philip Morris; and Addison Yeaman, General Counsel for B W, by also recommending approval for Hickey as a CTR Special Project. 1005084784-4786 (US 22988); 1005084799-4800 (US 20206).
259. By letter dated May 28, 1970, William Shinn of Shook, Hardy Bacon advised Holtzman that he now had approval from Philip Morris, Reynolds, and Liggett "with respect to the Hickey Special Project," a reference to studies relating air pollution to lung cancer incidence by Dr. Richard J. Hickey of the Institute of Environmental Studies at the University of Pennsylvania, and that he intended to "call the other General Counsel, if I have not heard from them by then, early next week." 2015031514-1514 (US 20316).
260. In 1981, Arthur Stevens, Senior Vice President and General Counsel of Lorillard, engaged in extensive correspondence with Patrick Sirridge of Shook, Hardy Bacon regarding the possibility of establishing an industry relationship with Henry Shotwell, a Sun Chemical employee who specialized in air-sampling analysis systems. 01349577-9577 (US 86281); 01349576-9576 (US 86282); 01349575-9575 (US 86283); 01349574-9574 (US 86284); 01349557-9557 (US 86285).
261. Similarly, on November 28, 1983, Arthur Stevens sent a letter to Patrick Sirridge of Shook, Hardy Bacon, inquiring: "Is Binstock someone who might be appropriate for a special project?" 03746232-6232 (US 29322).
262. CTR personnel also recommended that certain projects be funded as CTR Special Projects. For example, on December 24, 1969, Arthur Furst, CTR consultant, sent a letter to David Hardy recommending Special Project funding for Hans J. Eysenck, of the Institute of Psychiatry of Maudsleu and Bethlehem Royal Hospitals in London, to test the hypothesis of a relationship between the emotional make-up of people and cancer by conducting a pilot study of carcinogenesis in rats bred for different characteristics. 1005070515-0515 (US 20201).
263. According to CTR's Harmon McAllister, after lawyers had initiated a Special Project proposal, "a description of the proposed project and its cost [were] presented to CTR . . . for appraisal by the Scientific Director." McAllister WD, 161:4-18; CTRSP-FILES026162 (JD 090143). Individuals who presented the proposed project description and cost estimate to the CTR Scientific Director included company attorneys, attorneys from Shook, Hardy Bacon, and attorneys from Jacob Medinger. McAllister TT, 3/21/05, 16171:22-16172:22. The CTR Scientific Director would then review the Special Project proposal and either approve or reject it. McAllister TT, 3/21/05, 16178:16-24; McAllister WD, 19-25; CTRSP-FILES012009 (JD 093897). Sheldon Sommers reviewed and approved dozens of Special Project proposals during his tenure as CTR Scientific Director. See, e.g., 01335398-5398 (US 26488); 521032586-2588 (US 85746); 507731976-1976 (US 86273); 804122847-2848 (US 26525); 282002535-2536 (US 28076); 507731658-1659 (US 86269); 521028862-8863 (US 52693*); 804122847-2848 (US 23586); BWX0003460-3461 (US 36192); BWX0003808-3809 (US 36204); see also 503565787-5787 (US 29683); CTR98CONG00067 (US 32516); LWODJ9055269-5270 (US 26015).
264. If approved by the CTR Scientific Director, the proposal was presented to the General Counsels of Defendants Philip Morris, Reynolds, Lorillard, Liggett, B W, and American who would make the final decision whether to fund it. McAllister WD, 162:8-18; McAllister TT, 3/21/05, 16179:7-16182:2. See also Lisanti PD, Arch v. American Tobacco, 6/10/97, 86:17-87:2. Sometimes, general counsel would advise CTR directly if a project was approved for CTR Special Project funding. For example, on July 22, 1970, Henry Ramm, Senior Vice President and General Counsel of Reynolds, advised Robert Hockett, Associate Scientific Director of CTR, regarding the
proposed Conference to be held in the West Indies in January 1972, counsel representing Philip Morris, B W, American Brands, Liggett Myers and Lorillard which companies together with Reynolds participate in Special Projects have advised that if the Scientific Advisory Board does not approve this project the same can be treated as an approved Special Project.
CTRSP-FILES009810-9810 (US 21696); BWX0010831-0840 (US 36244).
265. The proposed conference was approved as a CTR Special Project in October 1970; was held on St. Martin Island on January 12-15, 1972; and was called the Conference on the Motivational Mechanisms of Cigarette Smoking. Among the attendees were A.K. Armitage from Britain's Tobacco Research Council; Robert Hockett, CTR Associate Scientific Director; Henry Ramm, CTR Chairman and President; Gilbert Huebner, Tobacco Institute Medical Director; Marvin Kastenbaum, Tobacco Institute Director of Statistics; and several of the Defendants' research directors, including William Bates of Liggett, I.W. Hughes of B W, Murray Senkus of Reynolds, Alexander Spears of Lorillard, and Helmut Wakeham of Philip Morris; and several CTR Special Project funding recipients, including Hans Eysenck, Richard Hickey, Hans Selye, and Carl Seltzer. 503654881-4885 (US 88413); 105394371-4388 (US 88414).
266. In general, however, Defendants' General Counsels would advise attorneys at Jacob, Medinger Finnegan or Shook, Hardy Bacon whether or not their companies would agree to fund the recommended CTR Special Projects. The following are but a few examples: American: TLT0960501-0501 (US 87682); ATX300000157-0157 (US 21130). B W: 521031038-1038 (US 20889); 521028861-8861 (US 52692*); 2050987576-7576 (US 27065); 521031875-1875 (US 30467); 521031322-1325 (US 30463); 521031846-1846 (US 30465); 521029712-9713 (US 30451). Lorillard: 01243259-3259 (US 20041); 01240219-0219 (US 26444); 01334994-4994 (US 26475); 01338114-8114 (US 26565); 01336286-6286 (US 26527); 01338207-8207 (US 26566); 01335922-5922 (US 20045); 80412203-2203 (US 21060); 85171343-1344 (US 22042); 80412199-2199 (US 21059); 91821884-1884 (US 57129); 1240455-0455 (US 26447); 01240436-0436 (US 26445); 01336587-6587 (US 26543); 01336855-6855 (US 26545); 01336555-6555 (US 26541); 00499935-9935 (US 29415); 01335470-5471 (US 26492); 01335522-5522 (US 26495); 01335570-5570 (US 26497); 01335958-5958 (US 26513); 01338086-8086 (US 26564); 01338514-8514 (US 26569); 01336289-6289 (US 26528); 01337806-7806 (US 26556); 01336501-6503 (US 26536); 01336504-6505 (US 26537); 01336190-6190 (US 26521); 01338062-8062 (US 26563); 01337090-7090 (US 26549); 01334735-4735 (US 26469); 01336268-6268 (US 26524); 01336271-6271 (US 26526); 01336959-6959 (US 26546); 01335008-5008 (US 26476); 01335403-5403 (US 86292); 01337994-7994 (US 26562); 01337733-7733 (US 26553); 01337962-7962 (US 26557); 01337543-7543 (US 26551); 01336249-6249 (US 26523); 01336089-6089 (US 26518); 01335396-5396 (US 26486); 01336438-6438 (US 26531); 80412203-2203 (US 21060); 85171343-1344 (US 22042); 80412199-2199 (US 21059); 87598541-8541 (US 56250). Reynolds: 507731453-1453 (US 29876); 503655278-5278 (US 21683); 507731762-1762 (US 20785); 507731377-1377 (US 29865); 507731370-1370 (US 29863); 508371649-1649 (US 86295); 03751438-1439) (US 29332); 507731343-1343 (US 29861); 503645683-5683 (US 29698); 507737625-7625 (US 29912) A); 507731653-1653 (US 22769); 507731427-1427 (US 29871); 50731762-1762 (US 20785); 507731504-1504 (US 51245); 507877123-7123 (US 29923); 507731975-1975 (US 29900); 507731649-1649 (US 29889); 507731757-1757 (US 29895); 507732210-2210 (US 29901); 507731486-1486 (US 29882); 507731727-1727 (US 29893); 507731568-1568 (US 29885); 507731646-1646 (US 29887); 507731972-1972 (US 29899); 507731572-1572 (US 29886). Liggett: 2015031514-1514 (US 20316); LG2002533-2533 (US 21198). Philip Morris: 1005053953-3953 (US 20198); 1005053931-3931 (US 86298). Philip Morris Companies: 2015047160-7160 (US 20326); 2015006925-6925 (US 20310); 2015006923-6923 (US 23047).
267. Once the General Counsels had approved a CTR Special Project, attorneys from Jacob, Medinger Finnegan or Shook, Hardy Bacon would advise CTR that the CTR Special Project had been approved. CTR would then assign each CTR Special Project a number and the CTR staff would administer and distribute the funds for that CTR Special Project to the recipient or his or her affiliated research institution from a separate bank account maintained by CTR for only the funding of CTR Special Projects. For example, on June 27, 1968, Ed Jacob of Jacob, Medinger Finnegan sent a letter to W.T. Hoyt, Executive Director of CTR, with respect to approval of CTR Special Project funding for A. Clifford Barger, and requested: "[W]ould you please assign a CTR SP Number to the project and let me know what that number is." McAllister PD, United States v. Philip Morris, 5/24/02, 92:19-95:3, 136:2-136:7; Hoel PD, United States v. Philip Morris, 6/27/02, 56:9-20, 57:13-18; 515772203-2211 (US 87024); see also McAllister WD, 162:4-18.
268. CTR Special Projects were not part of CTR's general fund budget; CTR's members provided the funding for CTR Special Projects in separate transactions. Each company — Philip Morris, Reynolds, Lorillard, Liggett, B W, and American — could decide whether or not to contribute to a particular project. The division of costs, however, was usually based upon the companies' respective market shares and the companies sent their share of a project's cost directly to CTR and its separate account for Special Projects. CTR personnel often sent letters to the General Counsels of the six companies requesting payments for the CTR "Special Projects Fund." Hoel PD, United States v. Philip Morris, 6/27/02, 66:10-67:10; McAllister WD, 161:14-16; 680305856-5858 (US 30887); CTRSP-FILES026615-6615 (86302); 81616878-6882 (31968).
269. Letters advising of the funding of a CTR Special Project were sent directly from CTR to the CTR Special Project recipient. CTRSP-FILES010602-0603 (US 32710); CTRSP-FILES011331-1331 (US 32718); CTRSP-FILES011338-1338 (US 32720); CTRSP-FILES007790-7790 (US 32683); McAllister WD, 162:14-15.
270. CTR Special Project recipients were instructed to use an acknowledgment line in publications resulting from CTR Special Project funding which was different from the acknowledgment line recipients of CTR regular grants were instructed to use in their publications. The acknowledgment line, used by CTR Special Project recipients did not disclose that their research program was undertaken at the specific request of Defendants for predominantly litigation purposes and was not screened and approved by the CTR SAB. McAllister PD, United States v. Philip Morris, 5/24/02, 145:23-149:18.
271. CTR did not include information about CTR Special Project research in its Annual Reports, which were widely distributed to medical editors at newspapers, medical editors for television programs, deans of colleges and universities in the United States, libraries at colleges and universities, college and university grant offices, the CTR board of directors, members of the CTR Scientific Advisory Board, CTR grantees, CTR Class A and B members, and the Tobacco Institute, and contained information about current and terminated grants-in-aid, grantees, and their institutions. CTR also did not include information about CTR Special Projects in press releases. McAllister WD, 164:17-24; McAllister TT, 3/21/05, 16167:18-16168:12, 16182:3-11; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 55:1-9, 177:14-17.
272. CTR Special Project funding ended sometime around 1990. USX6390001-0400 at 0017 (US 89555). Thereafter, Philip Morris, Reynolds, Lorillard, Liggett, B W, and American continued to jointly fund research projects on behalf of the Enterprise through Lawyers Special Accounts, discussed further below. For example, on March 2, 1990, Stevens sent a letter to Patrick Sirridge of Shook, Hardy Bacon, enclosing a check for $46,461, which represented Lorillard's share of joint funding for Theodor Sterling, a long-time CTR Special Projects grantee. Stevens noted "that this is no longer a CTR project, but is now being funded directly by the Companies and administered as a Special Research Project through your firm." 87598486-8486 (US 21096).
273. On March 7, 1990, Wayne Juchatz of Reynolds sent a letter to Sirridge enclosing Reynolds' portion for the continued funding of Sterling. On March 19, 1990, Paul Randour of American also sent a letter to Sirridge indicating approval of the joint funding of Sterling. On July 23, 1990, Ernest Pepples of B W sent a letter to Sirridge enclosing a check for $65,579, which represented B W's share of funding for Sterling. Pepples sent another contribution for Sterling's work in 1991. 87598486-8486 (US 21096); 507731678-1678 (US 29892); ATX300004011-4011 (US 21131); 521100040-0040 (US 20893); 91765001-5001 (US 32125).
274. On September 26, 1990, Patrick Sirridge of Shook, Hardy Bacon sent a letter to Wayne Juchatz of Reynolds, Josiah Murray of Liggett, Ernest Pepples of B W, Paul Randour of American, Arthur Stevens of Lorillard, and Charles Wall of Philip Morris concerning funding for Rodger Bick, a practicing oncologist-hematologist who had been collecting data on lung cancer incidence in Kern County, California. Sirridge noted that
[f]or over 10 years, Dr. Rodger Bick's research on lung cancer has been supported under a CTR Special Project. Dr. Bick has requested that his support be renewed so that he can continue the work. We recommend that this project be approved in the amount of $40,404.32 and be funded directly by the companies.
Philip Morris, Reynolds, B W, Lorillard, and American all agreed to jointly fund the continued research. 86002659-2661 (US 32046); 507731850-1851 (US 86308); 680712948-2948 (US 30912); 512678317-8317 (US 30044); 2015002794-2794 (US 20307); 507731849-1849 (US 76279); 86002653-2653 (US 32045); 87688005-8005 (US 32060); 91768262-8262 (US 32126).
275. In 1990, the companies continued to jointly fund the work of Alvan Feinstein that had previously been funded as a CTR Special Project on behalf of the Enterprise. ATX300004098-4098 (US 58613); 507731403-1403 (US 29870).
276. By letter dated February 26, 1991, Sirridge requested continued funding from Randour of American and Juchatz of Reynolds for Carl Seltzer, a long-time CTR Special Project recipient. Sirridge advised that B W, Lorillard, and Philip Morris had already agreed to the continued funding. BWX0003847-3848 (US 36212).
277. In March 1992, Bernard O'Neill of Shook, Hardy Bacon sent a letter to Wayne Juchatz of Reynolds, Ernest Pepples of B W, Paul Randour of American, Arthur Stevens of Lorillard, and Charles Wall of Philip Morris, and copied Steven Parrish of Philip Morris, recommending another extension of joint industry funding of Theodor Sterling. 2015002947-2955 at 2947-2948 (US 20308).
278. On May 18, 1992, Charles Wall, Vice President and Associate General Counsel of Philip Morris Companies, sent a letter to O'Neill of Shook, Hardy Bacon enclosing a check representing Philip Morris Companies' contribution to Sterling's research efforts. 2023230770-0770 (US 20384).
c. Scientists Funded Through CTR Special Projects
279. Documents reflect that the following scientists were funded through the CTR Special Project program: William H. Alban; Austin; Domingo M. Aviado; Roberto Bachi; Claus B. Bahnson; William J. Bair; Clifford A. Barger; Bevilacqua; Cesare Biancifiori; Rodger L. Bick; Herman V. Boenig; Brian Bozelka; Lyman A. Brewer, III; Geoffrey L. Brinkman; Barbara B. Brown; Brunner; Victor B. Buhler; John Robert Carter; Jeffrey N. Clark; Richard C. Clelland; Irven DeVore; Salvatore R. DiNardi; William L. Dunn (Philip Morris); Kurt Enslein; Hans J. Eysenck; Alvan R. Feinstein; T.N. Finley; G.H. Friedell; H. Hugh Fudenberg; Arthur Furst (CTR); Arvin S. Glicksman; Victor Gould; John G. Gruhn; Michael R. Guerin; William H. Gutstein; Frederick Hecht; Norman W. Heimstra; Doris L. Herman; Katherine M. Herrold; Richard J. Hickey; Robert C. Hockett (CTR); Ebbe Curtis Hoff; Freddy Homburger; E. Lee Husting; Duncan Hutcheon; Joseph M. Janis; Alfred Bennett Jenson; William V. Judy; Marvin A. Kastenbaum (Tobacco Institute); Leo Katz; David M. Kissen; Jerome Kleinerman; Suzanne Knoebel; Lawrence L. Kuper; Hiram T. Langston; Mariano LaVia; Leonard A. Lee; Samuel B. Lehrer; Eleanor J. MacDonald; Thomas F. Mancuso; J.H. Manhold; Marcus M. Mason; Neal L. McNiven; Aldo Misefari; Kenneth M. Moser; Harry Ness; S. O'Shea; Joseph M. Ogura; Ingram Olkin; Oser; Harold Perry; Charles D. Puglia; L.G.S. Rao; Herbert L. Ratcliffe; Vernon Riley; J.B. Roberts; Jay Roberts; Gray Robertson; Lisa Rosenblatt; Henry Rothschild; Linda Russek; Henry I. Russek; John Salvaggio; G.N. Schrauzer; Segi; Carl C. Seltzer; Hans Selye; Lucio Severi; James F. Smith; Louis A. Soloff; Darrel H. Spackman; Douglas H. Sprunt; R. Stankus; Frederick J. Stare; Russell Stedman; Theodor D. Sterling; David A. Sterling; Harold L. Stewart; Guiseppe Teti; Thomas; J.R. Trinidad; James A. Wakefield; John S. Waugh; John Vivian Wells; Carolyn K.Wells; Travis Winsor; George Wolf; and J. Yerushalmy. 92613920-4198 (US 32132); 2048925665-5704 (US 38726); 503654113-4113 (86310); 503654114-4153 (86311).
3. Lawyers' Special Accounts
280. In addition to CTR Special Projects, Philip Morris, Reynolds, Lorillard, Liggett, B W, and American funded still another category of special research projects on behalf of the Enterprise, often referred to as Lawyers' Special Accounts. These accounts were directed by industry lawyers, including the Ad Hoc Committee. Stevens WD, 16:17-17:19, 18:19-19:4; 2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902).
281. Defendants would often fund the same scientist through both CTR Special Projects and Lawyers' Special Accounts. For example, on September 26, 1977, Edwin Jacob sent a letter to Shinn, which enclosed a proposal from L.G.S. Rao. Jacob noted that
it now appears that this research is not appropriate for consideration as a CTR Special Project. Nevertheless, the work is of obvious value. . . . Dr. Rao should be a most effective proponent of some of his views and, under appropriate circumstances, might well be able to provide useful information to a Congressional Committee or other body inquiring into certain aspects of smoking and health. . . . For these, reasons, I would recommend that we fund Dr. Rao as a special project through Special Account No. 4.
503673274-3275 (US 29716).
282. On September 4, 1986, Patrick Sirridge of Shook, Hardy Bacon sent a letter to General Counsel Alexander Holtzman of Philip Morris, Wayne Juchatz of Reynolds, Josiah Murray of Liggett, Ernest Pepples of B W, Paul Randour of Reynolds, and Arthur Stevens of Lorillard, recommending that Richard Hickey receive continued funding:
Because Dr. Hickey no longer has an official university position, we believe it is an appropriate time for his CTR Special Project support to end. However . . . Dr. Hickey [should be paid] for one year, $12,000. The consultancy would be paid from Shook Hardy Bacon Special Account.
507875961-5962 at 5961 (US 20796).
283. Another example is the multiple source funding for Dr. Hans Eysenck's work on the relationship between lung cancer and the patient's "emotional makeup." Eysenck received CTR Special Project funding after initially applying — and being turned down — for a CTR SAB grant in 1969. Eysenck continued to receive CTR Special Project funding for a number of projects through 1986. Eysenck also received CTR SAB grant funding from 1973 through 1976. And Jacob also recommended to Thomas Ahrensfeld of Philip Morris, Max Crohn of Reynolds, Joseph Greer of Liggett, Arnold Henson of American, Ernest Pepples of B W, and Arthur Stevens of Lorillard that Eysenck receive funding through Special Account No. 4 in 1978 and 1979. CTRSP-FILES008806-8806 (US 21168); CTRSP-FILES008804-8804 (US 21167); CTRSP-FILES 08799-8799 (US 21165); HK1698002-8002 (US 21473); 507731385-1385 (US 20784); 03747024-7205 (US 21538); 507731387-1388 (US 29868).
284. Lawyers' Special Accounts were primarily handled through Special Account No. 3, Special Account No. 4, Special Account No. 5, and separate institutional grants, discussed below.
a. Special Account No. 3
285. Special Account No. 3 was not used to fund research, but to coordinate smoking and health databases for use by the members of the Enterprise, especially litigating counsel. Contributors to Special Account No. 3 included: American, B W, Liggett, Lorillard, Philip Morris, and Reynolds. 682150942-0942 (US 86491); Stevens WD, 20:3-7.
b. Special Account No. 4
286. From 1969 through at least 1989, American, Philip Morris, Reynolds, B W, Liggett, and Lorillard contributed to Special Account No. 4, which was used on behalf of the Enterprise for lawyers' special project funding, consultancy fees, and witness expenses. Stevens WD, 16:17-17:19, 18:9-19:4; 80680301-0303 (US 21066); 80680283-0285 (US 21065); 2015028333-8336 (US 20314); 1005122219-2222 (US 20214); 1005122237-2240 (US 20215); 1005122246-2249 (US 20216); 1005122257-2260 (US 20217); 1005122262-2265 (US 20218); 1005122267-2271 (US 20219); 03638929-8931 (US 20059); 2015042056-2059 (US 21862); 2015042069-2072 (US 22949); 507875857-5859 (US 20795); 507876993-6994 (US 20799); 507875832-5834 (US 20794); 507876986-6987 (US 20798); 507875698-5700 (US 22953); ATX140000938-0939 (US 21122).
287. A May 18, 1971 document prepared by Arthur Stevens of Lorillard noted the nature of "Special Account No. 4, which is used for Congressional and regulatory matters." 80680229-0229 (US 31967).
288. A September 19, 1973 document prepared by DeBaun Bryant of B W stated that Special Account No. 4
is used to maintain expenses incurred for certain research work such as that done by Arthur D. Little on multivariate analysis; work performed by witnesses in preparation for Congressional or federal agencies hearings. The following companies contribute equal amounts to this account: American Brands, B W, Liggett Myers, P. Lorillard, Philip Morris, Reynolds.
682150942-0942 (US 86491).
289. A December 9, 1977 document prepared by Max Crohn, Assistant General Counsel for Reynolds, further described Special Account No. 4: "Special Account No. 4 has been used to pay expenses and fees connected with expert consultancies and statement preparation." 03638986-8987 (US 86815).
290. A document titled "Special Account No. 4 — funding of Crohn Subcommittee Expenses and General Review" indicated that during a "General Counsel meeting" on January 4, 1978, it was agreed that "Special Account No. 4 could be used for paying fees and expenses of expert witnesses willing to prepare statements or consult." 03658901-8901 (US 20061).
291. A January 27, 1978 memorandum to the file prepared by Arthur Stevens of Lorillard noted that:
At a Committee of Counsel meeting on January 4, 1978 the future handling of Special Account No. 4 was discussed. Each project to be funded out of Special Account No. 4 will be the subject of specific prior approval by the Committee of Counsel. However, blanket approval was given by the Committee of Counsel for expenditures out of the account not to exceed $10,000 per year, without the need for prior approval. L M noted that it will participate in the funding of Special Account No. 4 during 1978 only to the extent that it did in 1977 (approximately $40-$45,000?).
85675219-5219 (US 32009).
292. A February 9, 1978 memorandum from William Shinn of Shook, Hardy Bacon to Thomas Ahrensfeld, General Counsel for Philip Morris; Max Crohn, Assistant General Counsel for Reynolds; Joseph Greer, Vice President and General Counsel for Liggett; Arnold Henson, General Counsel for American; Ernest Pepples, Vice President and General Counsel for B W; and Arthur Stevens, General Counsel for Lorillard, stated in part:
Some of you have asked for additional information concerning funding through Special Account No. 4. This account is administered by Jacob Medinger and Ed Jacob and I have reviewed the enclosed report. I also enclose a memorandum with regard to funding of projects and would appreciate your advice if you find this to be incorrect in any way. There is probably no need for you to retain those notes once you have satisfied yourself of the current situation.503655086-5088 at 5086 (US 20720); 503655086-5088 (US 75190).
293. Another 1978 document described the present and future commitments of Special Account No. 4 funds and the procedure for the approval of emergency matters. The list of industry witnesses included: Aviado, Brown, Eysenck, Spielberger, Hine, Ridgon, Seltzer, Rao, Booker, E. Fisher, Valentin, Heimstra, Dunlap, Farris, F. Fisher, Hickey, Moser, Okun, Sterling, Weil, Jones, Bick, Soloff, Kuper, Harvard Medical School (Huber), Stanford Research Institute, Franklin Institute, and the Industry Research Liaison Committee. LG2024193-4196 at 4195 (US 21212); 89694310-4312 (US 32089); 89694319-4325 (US 32091); 89694313-4318 (US 32090).
294. In the 1980s, Defendants Philip Morris, Reynolds, B W, American, Lorillard, and Liggett, through the law firm of Shook, Hardy Bacon, contracted with Battelle Laboratories of Columbus, Ohio to conduct studies on tobacco smoke and nicotine in the environment. Special Account No. 4 was used to fund the project. 01348599-8599 (US 87689); 01348503-8503 (US 86316); 01348490-8490 (US 86317); 01348473-8473 (US 86318); 01348483-8488 (US 86319); 01348489-8489 (US 86320); 01348465-8465 (US 86321); 01348315-8315 (US 26580); 502667789-7790 (US 29584); 503673514-3515 (US 29720); 521028996-8997 (US 30443); 01348441-8441 (US 34535); 01348727-8727 (US 86322); 521028981-8982 (US 30442); 503673416-3417 (US 29719); 2010045875-5876 (US 36519); 01346204-6205 (US 34532); 01346206-6208 (US 34533).
295. A February 22, 1980 letter from Arthur Stevens, Senior Vice President-General Counsel of Lorillard, to Timothy Finnegan of Jacob Medinger and copied to Thomas F. Ahrensfeld, Alexander Holtzman, Max H. Crohn, Joseph H. Greer, Arnold Henson, Ernest Pepples, William W. Shinn, Ed Jacob, and Janet C. Brown acknowledged exactly why Special Account No. 4 was used to fund scientists. Stevens stated:
I am mindful of the continuing mandate with which your office, Shook, Hardy and others have been charged by your respective clients on behalf of the Industry: that is, to find witnesses and researchers — and, if necessary in order to determine the feasibility of developing a relationship with them, engage them as consultants, or as researchers on initially modest projects. . . . [T]his [is an] important aspect of the Industry's work, that is, to attempt to posture ourselves to defend product liability litigation and related attacks on our products.
BWX0004097-4099 (US 36218); 85676690-6692 (US 32012); 1005146510-6512 (US 36118); 01110668-0670 (US 87679); 01335053-5055 (US 26480); 85676690-6692 (US 32012).
296. As with CTR Special Projects, progress and status reports of Lawyers' Special Accounts projects were sent to Committee of Counsel members. For example, on March 27, 1980, Edwin Jacob sent a letter to Thomas Ahrensfeld, Max Crohn, Joseph Greer, Arnold Henson, Ernest Pepples, and Art Stevens, enclosing research papers "in part supported by the consultation research funds you have provided to Professor Eysenck through Special Account #4." 521029758-9788 (US 30452).
297. On March 28, 1980, Jacob sent a letter to Thomas Ahrensfeld, Max Crohn, Joseph Greer, Arnold Henson, Ernest Pepples, and Art Stevens enclosing a progress report from Professor Spielberger, a recipient of Special Account No. 4 funding. 521032463-2496 (US 30476); 500515939-5939 (US 29465); 502822004-2004 (US 29586); 01355540-5540 (US 26583); BWX0002848-2848 (US 36175).
298. On September 10, 1981, a report was prepared on "Meeting of Company Counsel and Ad Hoc Committee Members" which discussed special projects and the Literature Retrieval Division. In it, the following comments were attributed to Edwin Jacob: "These 'special projects' are litigation and hearing oriented," and:
Difference between C.T.R. and Special Four (lawyers' projects). Director of C.T.R. reviews special projects — if project was problem for C.T.R., use Special Four. Also, if there are work product claims, need the lawyers' protection . . . done through Special Four because of possibility that C.T.R. would be subpoenaed.
The comment, "Concerned that science has become diluted and secondary to lawyers' advocacy interests," was attributed to Stevens of Lorillard. Thomas Bezanson of Chadbourne Parke also prepared a memorandum regarding the September 10, 1981 meeting. 2023918181-8185 at 8181 (US 20397); 2045752086-2093 (US 20466); ATX9275490271-0280 (US 36231).
299. A January 10, 1983 chart demonstrates that Defendants jointly funded through Special Account No. 4 both consultancies (listed were Domingo Aviado, Theodore Blau, Walter Booker, Marc Micossi, Ragner Rylander, Carl Seltzer, and Murray Senkus of Reynolds) and research projects (listed were Battelle Columbus Laboratories, Melvin First, Arthur Furst, Nancy Mello and Jack Mendelson, L.G.S. Rao, and Charles Spielberger). This chart was sent on January 11, 1983, by Patrick Sirridge of Shook, Hardy Bacon to Joseph Greer, General Counsel for Liggett; Arnold Henson, General Counsel for American; Alexander Holtzman, General Counsel for Philip Morris; Ernest Pepples, General Counsel for B W; Arthur Stevens, General Counsel for Lorillard; and Samuel Witt, General Counsel for Reynolds. LG2002618-2626 (US 21200); LG2002617-2617 (US 21199); 1005061636-1636 (US 35962); 1005061637-1645 (US 35963).
300. Special Account No. 4 was first administered by Jacob Medinger and then by Shook, Hardy Bacon starting in 1986. Attorneys from both firms would periodically request contributions from Philip Morris, Reynolds, American, B W, Lorillard, and Liggett. The companies were also sent accountant's reports regarding the activity in the account. 507877173-7174 (US 20800); 507877176-7176 (US 29925); 680302487-2487 (US 30885); 86002376-2377 (US 32044).
301. In 1986, Shook, Hardy Bacon reminded Committee of Counsel members that "[y]ou will recall that Special Fund 4 also is used to cover certain witness development expenses incurred by national litigation counsel." 507877173-7174 at 7173 (US 20800).
302. General Counsel from Philip Morris, Reynolds, Lorillard, Liggett, B W, and American and lawyers from Jacob, Medinger Finnegan and Shook, Hardy Bacon made recommendations with respect to the funding of Special Account No. 4 projects. For example, on February 9, 1978, William Shinn of Shook, Hardy Bacon sent a letter to Thomas Ahrensfeld, General Counsel of Philip Morris; Max Crohn, General Counsel of Reynolds; Joseph Greer, General Counsel of Liggett; Arnold Henson, General Counsel of American; Ernest Pepples, General Counsel of B W; and Arthur Stevens, General Counsel of Lorillard, recommending the approval of funding for Hans Eysenck through Special Account No. 4. 03638976-8979 (US 46483).
303. On February 12, 1982, Pepples sent a letter to Patrick Sirridge of Shook, Hardy Bacon, recommending the renewal of an annual grant to Arthur Furst be paid from Special Account No. 4. 521029995-0008 (US 20887).
304. Such industry attorney recommendations lasted from at least the 1980s through the early 1990s. 01335056-5057 (US 26481); 01347171-7172 (US 26579); 01346134-6135 (US 26577); 1005125796-5796 (US 36096); 1005125153-5154 (US 36085); 1005047922-7923 (US 35938); 1005064674-4674 (US 35974); 1005064613-4613 (US 35970); 03751441-1442 (US 29333); 80411597-1598 (US 31961); 86002656-2656 (US 56082); 86002593-2594 (US 56081).
305. Documents reflect that, at a minimum, the following individuals and organizations received funding through Special Account No. 4 beginning in the 1960s and ending in the 1990s: Able-Lands, Inc.; Lauren Ackerman; ACVA Atlantic Inc.; George Albee; Aleph Foundation; Arthur D. Little, Inc.; Aspen Conference; Atmospheric Health Sciences; Domingo Aviado; James Ballenger; Alvan L. Barach; Walter Barker; Broda O. Barnes; Battelle Columbus Laboratories; Battelle Memorial Institute; Walter Becker; Peter Berger; Rodger L. Bick; Billings Gussman, Inc.; Richard Bing; BioResearch Laboratories; Theodore Blau; Irvin Blose; Walter Booker; Evelyn J. Bowers; Thomas H. Brem; Lyman A. Brewer, III; Brigham Young University; Oliver Brooke; Richard Brotman; Barbara B. Brown; K. Alexander Brownlee; Katherine Bryant; Victor B. Buhler; Thomas Burford; J. Harold Burn; Marie Burnett; Maurice Campbell; Carney Enterprises, Inc.; Duane Carr; Rune Cederlof; Domenic V. Cicchetti; Martin Cline; Code Consultants Inc.; Cohen, Coleghety Foundation, Inc.; Colucci, Associates, Inc.; Computerland; W. Clark Cooper; A. Cosentino; Daniel Cox; Gertrude Cox; CTR; Geza De Takato; Bertram D. Dimmens; Charles Dunlap; Henry W. Elliott; Engineered Energy Mgt. Inc.; Environmental Policy Institute; J. Earle Estes; Frederick J. Evans; William Evans; Expenses related to Congressional Hearings in Washington D.C.; Hans J. Eysenck; Eysenck Institute of Psychiatry; Jack M. Farris; Sherwin J. Feinhandler; Alvan R. Feinstein; Herman Feldman; Edward Fickes; T. Finley; Melvin First; Edwin Fisher; R. Fisher; Merritt W. Foster; Richard Freedman; Herbert Freudenberger; Fudenberg; Arthur Furst; Nicholas Gerber; Menard M. Gertler; Jean Gibbons; Carl Glasser; Donald Goodwin; B. Greenberg; Alan Griffen; F. Gyntelberg; Harvard Medical School; Hearings-Kennedy-Hart Bill; William Heavlin; Norman Heimstra; Joseph Herkson; Richard J. Hickey; Carlos Hilado; Charles H. Hine; Hine, Inc.; Harold C. Hodge; Gary Huber; Wilhelm C. Hueper; Darrell Huff; Duncan Hutcheon; Industry Research Liaison Committee; Information Intersciences, Inc.; International Consultancy; International Technology Corporation; International Information Institute, Inc.; J.B. Spalding Statistical Service; J.F. Smith Research Account; Jacob, Medinger Finnegan; Joseph Janis; Roger Jenkins; Marvin Kastenbaum; Leo Katz; Marti Kirschbaum; Kravetz Levine Spotnitz; Lawrence L. Kuper; Mariano La Via; H. Langston; William G. Leaman; Michael Lebowitz; Samuel B. Lehrer; William Lerner; Edward Raynar Levine; G.J. Lieberman; S.C. Littlechild; Eleanor Macdonald; Thomas Mancuso; Nathan Mantel; R. McFarland; Meckler Engineering Group; Milton Meckler; Nancy Mello; Jack Mendelson; Michigan State University; Marc Micozzi; Irvin Miller; K. Moser; Albert Niden; Judith O'Fallon; John O'Lane; William Ober; J.H. Ogura; Ronald Okun; Ingram Olkin; Thomas Osdene (Philip Morris); Peat, Marwick Main Co.; Thomas L. Petty; Pitney, Hardin Kipp; Leslie Preger; Walter J. Priest; R. Proctor; Terrence P. Pshler; Public Smoking Research Group; R.W. Andersohn Assoc.; L.G.S. Rao; Herbert L. Ratcliffe; Attilio Renzetti; Response Analysis Project; Response Analysis Consultation; R.H. Rigdon; Jay Roberts; Milton B. Rosenblatt; John Rosencrans; Walter Rosenkrantz; Ray H. Rosenman; Linda Russek; Henry Russek; Ragnar Rylander; George L. Saiger; D.E. Sailagyi; I. Richard Savage; Richard S. Schilling; Schirmer Engineering Corp.; S. Schor; G.N. Schrauzer; Charles Schultz; John Schwab; Carl L. Seltzer; Murray Senkus (Reynolds); Paul Shalmy; R. Shilling; Shook, Hardy Bacon; Henry Shotwell; Allen Silberberg; N. Skolnik; JF Smith; Louis A. Soloff; Sheldon C. Sommers (CTR); JB Spalding; Charles Spielberg; Charles Spielberger; Lawrence Spielvogel; St. George Hospital Medical School; Stanford Research Institution Project; Russell Stedman; Arthur Stein; Elia Sterling; Theodor Sterling; Thomas Szasz; The Foundation for Research in Bronchial Asthma and Related Diseases; The Futures Group; Paul Toannidis; Trenton, New Jersey Hearings; Chris P. Tsokos; University of South Florida; Helmut Valentin; Richard Wagner; Norman Wall; Wayne State University; Weinberg Consulting Group; Roger Wilson; Wisconsin Alumni Research Foundation; Jack Wiseman; George Wright; John P. Wyatt; J. Yerushalmy; and Irving Zeidman. 01347232-7243 (US 75293); 03638929-8931 (US 20059); 03746309-6316 at 6313 (US 85355); 03746320-6331 at 6327 (US 75305); 86002410-2413 (US 85716); ATX140000938-0939 (US 21122); 507875698-5700 (US 22953); 507875832-5834 (US 20794); 507875857-5859 (US 20795); 507876993-6994 (US 20799); 1005122219-2222 (US 20214); 1005122237-2240 (US 20215); 1005122262-2265 (US 20218); 1005122267-2271 (US 20219); 2015028333-8336 (US 20314); 1005122246-2249 (US 20216); 1005122257-2260 (US 20217); 2010047954-7955 (US 86358); 2015041994-1997 (US 36654); 2015042056-2059 (US 21862); 2015042069-2072 (US 22949); 507876986-6987 (US 20798); 80680283-0285 (US 21065); 80680301-0303 (US 21066); 86002393-2396 (US 86359).
c. Special Account No. 5
306. Another avenue used by Defendants for joint funding of scientists was the research supported through Lawyers' Special Account No. 5. In a memorandum dated November 8, 1978 to Thomas Ahrensfeld of Philip Morris; Joseph Greer, Liggett; Arnold Henson, American; Ernest Pepples, B W; Henry Roemer, Reynolds; and Arthur Stevens, Lorillard, and copied to Janet Brown of Chadbourne Parke; DeBaun Bryant, B W; Max Crohn, Reynolds; Alexander Holtzman, Philip Morris; Lester Pollack, Lorillard; and William Shinn of Shook, Hardy Bacon, Edwin Jacob of Jacob Medinger enclosed a two-year, $400,000 research proposal from Alfred M. Freedman and Richard Brotman. Jacob advised: "Janet Brown, Bill Shinn and I have discussed this proposal with [Brotman and Freedman]. We recommend its approval." The Brotman/Freedman research, related to defining risks and "unhealthy" behavior, was designated by counsel to be a Special Account No. 5 project. 521029470-9485 (US 30450); 03639217-9217 (US 29290); 682070027-0027 (US 36145); 03746884-6884 (US 29324).
Lorillard did not participate in the second phase of funding for the Brotman/Freedman research. (US 30450).
307. In July 1982, Arthur Stevens of Lorillard sent an updated Brotman/Freedman proposal to Lorillard scientist Alexander W. Spears for review. In his assessment, Spears concluded that the Brotman/Freedman proposals were of "little potential value to this Industry," but acknowledged "the area of Brotman's and Freedman's value as witnesses in legislative proceedings." Lorillard participated in the joint funding of the first phase of the project, but did not participate in the second phase. Stevens WD, 16:17-17:3; 01335523-5523 (US 26496); 01335522-5522 (US 26495); 521029470-9485 (US 30450); 01335521-5521 (US 26494).
308. The Brotman/Freedman project was approved in 1982 by four of the Defendants: American, Reynolds, Philip Morris and B W and ran through the mid-1980s. 521029470-9485 (US 30450); 86002376-2377 (US 32044).
d. Institutional Grants
309. Lawyers' Special Accounts were also used to pay for the institutional grants funded by Philip Morris, Reynolds, Lorillard, Liggett, B W, and American. Defendants funded projects at Harvard University, University of California Los Angeles ("UCLA"), and Washington University. Stevens WD, 19:7-15.
310. In a November 17, 1978 memorandum, Robert Seligman, Vice President of R D of Philip Morris, described how Defendants used institutional grants to refurbish their scientific image. Seligman reported that at the meeting Shook, Hardy Bacon attorney William Shinn had stated:
CTR began to lose their luster in the mid-60's and the tobacco industry looked around for more beneficial ways to spend their research dollars on smoking and health. It was at this time that special projects were instituted at Washington University, Harvard University, and UCLA. . . . [T]he industry received a major public relation 'plus' when monies were given to Harvard Medical School.
2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902).
311. Defendants' institutional grant to Washington University in St. Louis was to research the immunologic aspects of cancer. 2045752106-2110 at 2107 (US 20467); 1003718428-8432 at 8429 (US 35902); 01338888-8888 (US 26572); 521033382-3383 (US 30478); 521033485-3486 (US 30479).
312. Defendants' institutional grant to Harvard University was under the direction of Dr. Gary Huber, who was conducting in vivo and in vitro animal studies on the biologic responses to tobacco smoke. Funding began in 1972, and the participating companies were Defendants American, B W, Liggett, Lorillard, Philip Morris, Reynolds, along with Larus Brother, Tobacco Associates, and United States Tobacco. The project was to be funded for a total of $2,792,750 over a five-year period. Arnold Henson of American acknowledged that one of the main reasons for the Harvard project was "the PR value of the Harvard name." ZN25950-5956 (US 64794); 955030735-0737 (US 86365); BWX0004364-4375 (US 36228);968003136-3137 (US 25857); 961016507-6508 (US 25854); 1000207774-7775 (US 26078); 2015057132-7132 (US 86366); 980076941-6942 (US 86367); BWX0004364-4375 (US 36228); 1005053856-3856 (US 20197); 86001059-1071 (US 86369); 968003658-3666 (US 25860); 961017594-7594 (US 86370); 968003658-3666 at 3665 (US 25860); 502026481-6487 (US 29549); 2010048605-8606 (US 36525); 100371866-8669 (US 35905); 2010048831-8834 (US 36526); 961017379-7379 (US 86371); 680260639-0642 (US 30860); 961000834-0834 (US 32366) (Confidential); 01335777-5778 (US 26508); 01335779-5779 (US 26509); 01335794-5794 (US 86374); 01335789-5789 (US 26510); 01347161-7161 (US 86375); 503646200-6200 (US 29701); 01335767-5772 (US 26506); 01335774-5774 (US 26507); 01335761-5764 (US 26505); 980078407-8411 (US 25865). See Section III(E)(3)(d), infra, for discussion of the Harvard/Huber research.
313. Joint funding at UCLA began in 1974, and the participating companies were Defendants Philip Morris, Reynolds, and B W, along with United States Tobacco and Tobacco Associates. ZN25950-5956 (US 64794); TIMN217740-7743 (US 62720); TIMN217738-7739 (US 62719).
F. Committees
1. Research Review Committee, Research Liaison Committee, and Industry Research Committee
314. In February 1974, a consensus had developed among Defendants that an industry committee should be established to review their support of medical research and to make recommendations as to the future course Defendants' support should take. At a CTR meeting, Lorillard, through its President Curtis Judge, agreed to participate in an increased budget for CTR only on condition that such a review of industry research be undertaken. BWX0007549-7588 (US 86832); ARU1130828-0904 (US 86773).
315. One set of suggested guidelines from the mid-1970s for an Industry Committee for the Review of Industry's Overall Independent Scientific Research Effort was: (1) to reconsider the CTR research program, both SAB grants and Special Projects; (2) to reconsider non-CTR research projects undertaken by one or more individual tobacco companies; and (3) to consider the establishment of a means of coordinating the research undertaken in (1) and (2). 2015040937-0938 (US 20322); 2015040955-0955 (US 20323); TIOK0032723-2724 (US 63004); 2015057143-7144 (US 87693); 03659038-9039 (US 29304); 2015057135-7136 (US 86379); 2015057134-7134 (US 86380); 2010070308-0308 (US 86381); 2015040955-0955 (US 20323); 2015057145-7150 (US 86384); CTRMM015322-5327 (US 79854).
316. William Smith, Chairman of the Tobacco Institute's Executive Committee, wrote in April 1974, that agreement had been reached with each of the major manufacturers as to their representative on the "committee to study the research programs funded by our industry, both through CTR and independent projects." Smith reported that David Hardy of Shook, Hardy Bacon would chair the committee; Horace Kornegay and William Kloepfer would represent the Tobacco Institute; and William Gardner and Leonard Zahn would represent CTR. Smith stated that the members of the committee were charged with the responsibility for studying industry research programs and research projects funded outside of CTR, such as those at Harvard, Washington University, and UCLA, and reporting their recommendations to the chief executives of the six major cigarette companies — American, B W, Liggett, Lorillard, Philip Morris, and Reynolds. Meetings of the Industry Research Committee began on May 7, 1974. After meeting several times in 1974, the committee recommended that a Research Liaison Committee be appointed to serve indefinitely to achieve "a coordinated and informed overview of all industry research." CTRMN015328-5329 (US 21600); ZN22613-2614 (US 64796); 03659035-9036 (US 29303); LWODJ9055585-5585 (US 26006) (Confidential); LWODJ9055586-5587 (US 26007) (Confidential); LWODJ9055585-5585 (US 26006) (Confidential); LWODJ9055586-5587 (US 26007) (Confidential); BWX0007549-7588 (US 86832); 03659013-9016 (US 29300); LWODJ9055779-5781 (US 26008) (Confidential); LWODJ9055531-5532 (US 26009) (Confidential); 2015040862-0863 (US 36652); ZN22408-2408 (US 86391); CTR98CONG01187-1189 (US 21137); 03540217-0225 (US 22294); LWODJ9055501-5505 (US 25957) (Confidential); 03659013-9016 (US 29300).
317. Creation of the Research Liaison Committee was approved at a meeting of the Tobacco Institute on October 3, 1974, as a successor to the Research Review Committee which had been established in April 1974. The newly formed Research Liaison Committee existed through early 1978. The aims and functions of the Research Liaison Committee were to devise and implement fiscal and peer review for institutional grants, and to consider and make recommendations with respect to proposals for institutional and other research projects in light of all research efforts in and outside of the industry. Members of the Research Liaison Committee were encouraged to attend meetings with CTR in order to keep informed about its plans and projects. Stevens WD, 29:8-19; Zahn PD, Cipollone v. Liggett, 12/16/86, 138:2-139:24, 148:12-16; Zahn PD, Cipollone v. Liggett, 12/17/86, 208:20-209:1; Zahn PD, Massachusetts v. Philip Morris, 5/28/98, 106:11-22, 114:14-115:4; Zahn PD, Richardson v. Philip Morris, 12/16/98, 375:3-10; Kornegay PD, Cipollone v. Liggett, 8/17/94, 196:25-201:2, 208:10-212:18, 213:8-217:8; LWODJ9055332-5332 (US 25953) (Confidential); BWX0007549-7588 (US 86832); BWX0002609-2611 (US 36165); ARU113 0828-0904 (US 86773); 2015057125-7125 (US 86400); 955002251-2251 (US 32354); 01404441-4441 (US 86401); 70124410-4414 (US 31512); 1003719192-9192 (US 35906); 503673145-3146 (US 86405); 1003719175-9179 (US 86406); PM010430-0437 (US 86408); 1003712682-2688 (US 86409); 1000255997-6001 (US 20086).
318. At its January 1975 meeting, the Research Liaison Committee decided that the expenses of considering the feasibility of research projects and proposals would be funded through the CTR Special Projects fund and funded by those companies agreeing to the research study. The Committee also decided that participating companies would pay for the auditing expenses for the institutional projects at Harvard, UCLA, and Washington University, and discussed problems regarding funding of the Harvard/Huber research project at Harvard Medical School. BWX0002613-2614 (US 36166); BWX0007549-7588 (US 86832).
319. A report dated November 19, 1977, written by Janet Brown, attorney for American from Chadbourne Parke, summarized the activity of the Research Liaison Committee from its inception as the Research Review Committee in April 1974 through 1977. Brown advised that American might wish to maintain a representative on the Research Liaison Committee after the departure of its representative, Cyril Hetsko. BWX0007549-7588 (US 20286).
320. In 1978, the budget and direction of the CTR was again an area of concern for Defendants. Accordingly, Defendants proposed that yet another committee be convened again "to take up the general question of what kind of research the industry should be into through CTR or elsewhere." A Lorillard document dated April 21, 1978, also articulated the need for a new committee:
We have again "abdicated" the scientific research directional management of the Industry to the "Lawyers" with virtually no involvement on the part of scientific or business management side of the business.
Industry representatives held meetings and reported to the companies' General Counsels. The name of this new committee was the Industry Research Committee, which essentially performed the same functions as the prior Research Liaison Committee. 01346204-6205 (US 34532) (emphasis in original); Stevens WD, 29:20-38:15; 95539849-9850 (US 56829); TIOK0032721-2722 (US 63003); 03537201-7201 (US 86411); 680252124-2125 (US 30859); 03638976-8979 (US 20060); BWX0007531-7548 (US 36238).
321. An internal letter from Ernest Pepples, B W Vice President and General Counsel, to Joseph E. Edens, Charles I. McCarty, I.W. Hughes and DeBaun Bryant dated April 4, 1978, discussed the new committee. Pepples reported:
That Committee, as you know, has a number of disciplines and attitudes represented including research and development, public relations, legal and one CEO (Curt Judge). It is the proper place to take up the general question of what kind of research the industry should be into through CTR or elsewhere. It can also deal with the issue of contract research versus grant research.
680212421-2423 (US 54024); 682338651-8653 (US 22899).
322. The new Industry Research Committee met on November 6, 1978. In attendance were: Ernest Pepples, B W; Charles Tucker, Reynolds; Arnold Henson, American; Janet Brown, attorney with Chadbourne Park; James Bowling, Philip Morris; Edwin Jacob, attorney for CTR; and Donald Hoel, attorney with Shook, Hardy Bacon. An even larger meeting was held on December 13, 1978, and meetings continued throughout 1979, 1980 and 1981 which were attended by Defendants' representatives and industry attorneys. With respect to the direction and role of CTR, "[i]t was agreed that the CTR role would be one of basic research into the disease areas that have been statistically associated with smoking. CTR would not, however, engage in research designed to test the effects of tobacco smoke or tobacco products in animal or human systems," contrary to the promises made in the original Frank Statement. Stevens WD, 29:20-36:9; 2075318262-8268 (US 43667); 1000041870-1876 (US 35102); 03677101-7103 (US 29313); 03754196-4198 (US 29342); 521032356-2357 (US 31474); 01346193-6196 (US 20046); 01346186-6186 (US 26578); 01346656-6656 (US 86416); 80419203-9203 (US 21062).
2. Industry Technical Committee
323. TIRC designated the research directors of its tobacco company members as the Industry Technical Committee ("ITC") in January 1954. The research directors on the first ITC included representatives from American, B W, Lorillard, Philip Morris, and Reynolds. JH000395-0400 (US 21178); TLT0901400-1410 (US 88187); see also USX6390001-0400 at 0011 (US 89555).
324. The ITC provided technical information to the TIRC SAB concerning tobacco, its constituents, and other matters. The chairman of the ITC was invited to sit in on all SAB meetings in order to ensure coordination between the SAB and ITC. Members of the ITC attended SAB meetings and answered questions from the SAB. Zahn PD, Cipollone v. Liggett, 12/16/86, 107:2-11, 107:20-108:23, 113:6-8, 114:6-9; Zahn PD,Massachusetts v. Philip Morris, 5/28/98, 77:4-18; CTRMIN-SAB000001-1061 at 0002 (US 21146); CTRMIN-SAB000001-1061, 70011735-1757 (JD 090960); CTRMIN-ITC000009-0011 (JD 95519); ATX300000015-0017 (US 21129); CTRMN039046-9106 (JD 092825); 500500320-0323 (US 20633); 955036231-6240 (US 32364); 950148087-8088 (US 32347); 507079688-9689 (US 29831).
325. At a 1967 ITC meeting held at CTR, with representatives present from CTR, Chadbourne Parke, Liggett, American, B W, Reynolds, Lorillard and Philip Morris, Osdene of Philip Morris reported that
Dr. Hockett stated that CTR is moving into an era of active collaboration with the industry and they wish to make the technical committee more effective by including biologists. . . . Programs will be developed in which Hockett wishes to use the industry technical committee people to give advice which will go into the development of plans for submission to the SAB. C.C. Little would like to meet with this committee either before or after the SAB meeting. He feels that this would be an opportunity to build a creative future and that CTR would move with more speed.
682011463-1466 (US 86418); 1001609316-9320 (US 86419).
326. A subsequent 1967 meeting was called to "organize the Industry Technical Committee." Present again at the meeting were representatives from CTR, American, B W, Reynolds, Lorillard, Philip Morris, and Chadbourne Parke.
It was stated that the Scientific Advisory Board and the C.T.R. staff [were] desirous of obtaining the regular and organized assistance of the industry technical group. Functions of the ITC [were]: 1. To bring its technical know-how to bear on problems in which it is desired. 2. To assist the staff. 3. Make suggestions. . . . While the makeup of the I.T.C. has usually consisted of the Research Directors of the various participating companies, it was recognized that any company could designate whomever it wished as I.T.C. member.
ATX300008549-8551 (US 58614).
327. A meeting of the ITC was held on April 26, 1968, at the CTR office in New York and was called specifically by W.T. Hoyt of CTR on behalf of the CTR staff. Representatives from CTR, B W, Lorillard, Philip Morris, Reynolds, and American attended the meeting. The meeting was called "to hear presentations by the CTR-staff of the contract research program being proposed by Mason Research Institute," which was to involve large-scale, long-term mouse inhalation experiments. 955033996-4012 (US 32363). It was noted that:
a) the contract status as proposed represents a significant change of "tact" [sic]. b) the proposed program represents very considerable increase in costs and outlay. c) and therefore, this entire program may represent a significant "departure from CTR plans and policy."
955033996-4012 (US 32363).
328. In describing the background for the Mason contract, Arthur W. Burke of American reported that the CTR staff had taken an interest in inhalation toxicology ten years prior:
About this time the CTR-staff began to visit the various grantees to learn what was forthcoming from their studies, and on a visit to the Leuchtenbergers' laboratory learned that evidence was accumulating that adenocarcinomas of mouse lung were occurring with smoke inhalations. . . . "Since foes of Industry might snatch-up such preliminary findings and misuse the information, the CTR staff entertained a limited project at Mason Research Institute, the purpose of which would be to set-up and compare the operation of several animal exposure-smoking machines in one place and at one time, using the same mouse strain, etc. — in short to study the smoking machines per se. This work was initiated at Mason about one year ago." In the course of these machine evaluations, Mason noted some deficiencies in some of these machines, and the "CTR recognized that they were piddling in some dangerous areas."
955033996-4012 (US 32363) (emphasis in original).
329. At an October 25, 1968 ITC meeting, there was also a discussion of the relationship between the ITC and the CTR Scientific Advisory Board. Hoyt voiced the opinion that the SAB is considering "more targeted research with closer CTR staff monitoring which would be in a) academia by grants, and b) other places by contract — where necessary." 955036231-6240 (US 32364).
330. In a 1970 report, the Defendants' research directors — Helmut Wakeham of Philip Morris; Preston Leake of American; Alexander Spears of Lorillard; Murray Senkus of Reynolds; William W. Bates of Liggett; and I.W. Hughes of B W — expressed their displeasure with CTR's research program, its focus on studies of diseases that were associated with smoking, its defensive posture, and its lack of guidance for future strategy of the tobacco industry in the area of smoking and health. The report offered opinions as to how CTR might become more effective as an instrument for the good of the tobacco industry. 1002636362-6365 (US 22998).
331. In the 1960s, the ITC assisted the Tobacco Institute, and ITC members were encouraged to attend meetings at the Tobacco Institute. An ITC meeting at the Tobacco Institute was called "to discuss the possible implications of a $50,000 grant from National Institutes of Health to the F.T.C. laboratory to develop a smoking machine capable of carbon monoxide analysis." Present at the meeting were representatives of Liggett, American, Reynolds, Lorillard, Philip Morris, B W, Covington Burling, and the Tobacco Institute. There was much concern over the possibility that the FTC intended to publish brand carbon monoxide levels. The attendees suggested that Defendants be ready to demand public hearings on methodology and be prepared to "counteract the increasingly irrational public image being drawn by anti-smoking forces" on carbon monoxide hazard. TIMN0134876-4877 (US 65574); 950148089-8091 (US 32348).
3. Tobacco Working Group
332. In March 1968, the National Cancer Institute created the Tobacco Working Group ("TWG") to serve as an advisory group to its Smoking and Health Program which was directed by Dr. Gio B. Gori. 87754028-4373 (US 22259). The Group was composed of a broad cross-section of scientists, researchers, and treating physicians specializing in smoking and health. Four of its members were from the tobacco industry: Murray Senkus, Director of Research for RJR; Alexander Spears, Director of Research and Development for Lorillard; Helmut Wakeham, Vice President of Corporate Research and Development for Philip Morris; and Charles Kensler of Arthur D. Little, Inc. By 1969, William Bates, Director of Research at Liggett, was attending TWG meetings, and by 1971, I.W. Hughes of Brown Williamson had accepted membership. The TWG existed in various forms from 1968 through 1977, when it was dissolved as a cost cutting measure. HHA6060033-0036 (US 86422); 501555964-5966 (US 22284); LDOJ3002797-2803 (US 86423); LG0267405-7405 (US 59094*); 680231778-1778 (US 86424); Stevens WD, 43:23-46:9; 680142974-2974 (US 22254); 680142966-2966 (US 30817); 680142967-2967 (US 54018); TLT1022905-2912 (US 86842); TIMN0102540-2560 (US 86843).
333. Industry representatives repeatedly informed the TWG that they were participating in their individual capacities, and not as representatives of their individual tobacco company employers. Moreover, they emphasized that their participation did not represent acceptance of the view that cigarettes were hazardous to health or caused lung cancer. U.S. 88, 489. In his 1968 letter accepting membership in the TWG, Murray Senkus stated "I am in no manner accepting the view (1) that present cigarettes are hazardous or (2) that the smoke of such cigarettes causes or contributes to the development of human lung cancer." See also US 22263; US 69276; US 22269; US 26069.
334. Participation by industry representatives proved valuable by allowing Defendants to keep abreast of what the United States Government was doing with respect to smoking and health issues. Their participation also provided a mechanism by which Defendants could try to influence the United States Government's activities in the smoking and health arena. An undated B W document, discussing United States Department of Health, Education and Welfare activity in the 1960s, clearly articulated the reasons for Defendants' participation on the TWG:
Of these four actions [taken by the United States Department of Health, Education and Welfare with respect to smoking and health issues], the first three [developing epidemiological evidence linking smoking and certain diseases; launching a program to alert the public about the dangers of smoking; and pushing for legislation which would reduce cigarette consumption] have been of such immediate concern that they have received most of the attention of the tobacco industry. However, the later [initiating a research program designed to produce a "less hazardous cigarette"] is probably as important, or perhaps more important for the long-term future of the industry. Although work in this area is in its initial stages, the direction of this work seems clearly indicated and should be evaluated.
* * *
One can logically expect that any reluctance on the part of industry to voluntarily produce commercial cigarettes on the basis of positive results from this program would result in legislation to force adoption. In all probability, little attention is likely to be given to the commercial acceptability of the [unreadable] from this program.
* * *
Since industry has representatives on this committee, it should be possible to remain completely aware of all actions taken and to have at least some influence on these actions. If one assumes complete and frank interchange of information arising from within this committee among all companies, the companies should then operate from a common base.
HHS1330992-0998 (US 76082).
335. Similarly, a March 9, 1972 document drafted by Alexander W. Spears of Lorillard recognized:
If I were to withdraw [from the TWG], Lorillard would lose considerable insight into the workings of the National Cancer Institute program with respect to cigarettes. There is a very real possibility that this program is going to have a profound effect on the cigarette industry, and I believe that we should be aware of these effects as soon as they become clear. We also have some significant influence on the course of the detailed activities and, therefore, some effect on ultimate results.
01240178-0178 (US 22282).
336. Defendants' approach to the TWG and all Defendants' related activities were jointly formulated and closely monitored by committees of industry lawyers and executives to ensure that such "participation" in the TWG did not threaten — and indeed served — Defendants' common purposes. Defendants' representatives to the TWG regularly reported to their counsel, who kept company executives, CTR, the Tobacco Institute, and one another abreast of TWG activities. 501556259-6263 (US 22283); 501555964-5966 (US 22284); 500502060-2063 (US 22286); 501990370-0374 (US 22287); 1005070117-0121 (US 22288); 1005070122-0122 (US 22903); 680142648-2648 (US 22374); 2015040862-0863 (US 36652); 680143084-3084 (US 22293); 03540217-0225 (US 22294); BWX0003934-3938 (US 86425); 03753993-3994 (US 22295); 03646227-6228 (US 22296); LG0208389-8389 (US 59040).
337. The Enterprise engaged in a concerted effort to prevent, curtail, and ultimately to neutralize the TWG's efforts to evaluate cigarettes' effects using an animal inhalation bioassay developed by researcher Oscar Auerbach. 1000298389-8392 (US 26082); 1005086254-6254 (US 86426); 1002906624-6625 (US 86427); 1000298389-8392 (US 26082); 1005086254-6254 (US 86426); 1002906624-6625 (US 86427); 500006051-6051 (US 86428); CTRMN015382-5383 (US 79878). See also Kornegay PD, Cipollone v. Liggett, 12/6/94, 588:11-589:4, 590:2-8, 592:23-594:6, 598:20-604:7.
338. In Auerbach's study, beagle dogs smoked cigarettes for up to 2.3 years through a throat opening in their windpipes. Two of the eighty-six dogs which started the test developed early squamous cell bronchial carcinoma, the most common lung cancer occurring in humans. An April 3, 1970 report from a United Kingdom tobacco manufacturer, Gallahers, circulated among Defendants, concluded that "we believe the Auerbach work proves beyond a reasonable doubt that fresh whole cigarette smoke is carcinogenic to dog lungs and therefore it is highly likely that it is carcinogenic to human lungs." US 21688. Dr. Auerbach and his co-researcher E. Cuyler Hammond applied to NCI to conduct follow-up studies on the effects of nicotine on cardiovascular disease in dogs, and made a presentation to the TWG at a meeting in November of 1970. US 29546, 22298.
339. The Tobacco Institute carefully researched Auerbach and his past research projects and shared information with its member companies on behalf of the Enterprise. 2015047506-7506 (US 86431); 508775596-5596 (US 86432); 500006028-6028 (US 86433); 1005086194-6194 (US 86434); 1005086196-6196 (US 86435); 1005086198-6198 (US 86436); 03758481-8482 (US 86437); 1005086201-6201 (US 86438); 2024991017-1017 (US 86439); TIMN221636-1636 (US 86440). Helmut Wakeman indicated in a December 22, 1971 letter to other industry TWG members that "[t]he very great probability that this proposal will be accepted and funded by the N.C.I. is a matter of considerable concern to the tobacco industry." U.S. 22261.
340. Despite the findings of Defendants' scientists, which affirmed the significance of the Auerbach study, the Tobacco Institute publically questioned the results. A 1970 Tobacco Institute press release stated, "We have good reason to question whether lung cancer experts in this review group were able to confirm any finding of lung cancer[.]" TIMN0109556-9560 (US 87698); see also CTRMN015379-5379 (US 79876).
341. Representatives of the Defendants also decided to try to block the TWG from replicating Auerbach's research. Edwin Jacob, counsel to CTR and Reynolds, instructed Reynolds's scientists Murray Senkus and Alan Rodgman, as well as other Defendants' scientists, to prevent the TWG from performing dog inhalation studies such as those deemed necessary to develop new products. Jacob argued against such studies on the grounds that they would be an admission by Defendants that existing cigarette products were harmful. Moreover, Jacob — an attorney, not a scientist — feared that these experiments might show proof of nicotine habituation. 515872408-2456 at 2424-2429 (US 22261).
342. In his report to the Tobacco Institute Annual Meeting on January 28, 1971, William Kloepfer boasted that
[o]ur constant pressure on Hammond's and Auerbach's shaggy — or shabby — dog story has put that work as reported so far into a permanent file marked controversy — especially among scientists. It did more than that. It demonstrated our counterattack capability as a team. During the rest of the year we missed no event worth talking about in which our comment wasn't issued — and printed and broadcast — the same day.
TIMN0081403-1405 (US 77050).
343. In addition to trying to shape the path of research undertaken by the TWG, Defendants' lawyers and executives determined that their scientist representatives on the TWG would offer no suggestions about experiments to conduct or projects to pursue in the search for a less hazardous cigarette. 1005056343-6343 at 6343 (US 22272*).
344. Defendants also utilized the relationships they developed with certain government scientists through the TWG. After the TWG was disbanded, they retained two of its members, Dr. Gio Gori, former Chairman of the TWG from NCI and Dr. T.C. Tso from USDA, as consultants. Gori has been a spokesperson and consultant for the industry since leaving the NCI in the 1980s and Philip Morris secured the services of Tso upon his retirement from USDA in 1983. Bloch PD, United States v. Philip Morris, 2/14/02, 1815:20-1819:20; Tso PD, United States v. Philip Morris, 6/5/02, 178:1-181:12, 182:19-183:2, 183:16-184:23; HHS1091046-1048 (US 88738); 680900035-0045 (US 21013); 1005082903-2903 (US 21529); TIMN435245-5245 (US 22487); 2050986280-6281 (US 27064); 2023799642-9642 (US 87701); 2000511301-1302 (US 87703); 2000596045-6045 (US 87704); 2001202319-2319 (US 87705).
G. Coordinated Smoking and Health Literature Collection and Retrieval
345. One of Defendants' paramount objectives has consistently been to avoid the issuance of any liability findings that could result in large damage awards as well as increased public recognition of the harmful effects of smoking. In pursuit of that objective, Defendants collectively gathered, organized, stored, and eventually automated medical and scientific literature related to smoking and health research.
346. According to a February 1969 Lorillard memorandum, Defendants' "Central File" was started in the late 1950s, was supported financially by all members of the industry, and was supervised by the Ad Hoc Committee. It was eventually consolidated and put under the direct supervision of Defendants' attorney Edwin Jacob. The "Central File" was a collection of every document which could be found relating to the smoking and health controversy. Beginning in or about 1967, the major tobacco companies, with the exception of Lorillard, also joined together and established an "Information Center" for the collection, summarization, and computerization of all information and documents concerning smoking and health. The purpose of the Information Center was to have information readily available to the industry for litigation and congressional hearings. 044227839-7844 (US 20066); 044227839-7844 (US 20066); 500289915-9918 (US 29454); 01422304-2304 (US 20288); 85649920-9920 (US 21080); 80680229-0229 (US 31967).
347. By 1964, indices of scientific literature were also being compiled separately by the individual Defendants and their agents for litigation purposes. Edwin Jacob, attorney for CTR, Reynolds, and B W, employed a supervisor and three other employees to abstract and catalogue current medical and scientific literature by subject and author for litigation purposes. Henry Ramm, attorney for Reynolds, kept a similar but larger index, containing over 20, 000 documents in eight volumes. In addition, Kenneth Austin and three other CTR staff members compiled indices of scientific literature for litigation purposes. Litigation indices were also kept by Janet Brown, attorney for American, and Alexander Holtzman, attorney for Philip Morris. Liggett hired a person to gather literature and advocated using space at an outside law firm of one of the companies to do the task, so that future literature could be collected "under the wing" of counsel. 1003119099-9135 (US 20152); LG2017032-7034 (US 34100).
348. In a mid-1960s report, Lorillard stated
Because of the continued attacks on the industry . . . it is in the best interests of Lorillard to join forces with all other members of the industry concerning the health controversy.
Although each cigarette company handled its own litigation through various trial attorneys,
there is a high degree of cooperation between the companies through . . . the "Ad Hoc Committee" which finds medical witnesses and prepares testimony. Lorillard's representative on this Committee is Mr. David Hardy. The Committee supervises the Central File which is a collection of every document which can be found relating to the smoking and health controversy. This cooperation must be continued. An adverse decision against any member of the industry would be disastrous to all.
80684691-4695 (US 21067).
349. Defendants shared the expense of bibliographic services and analysis performed for the Central File. 85649920-9920 (US 21080); 80680229-0229 (US 31967).
350. In 1971, the services supported under the Central File and the services performed by the Information Center were transferred to CTR. At the first meeting of CTR's Board of Directors after its incorporation in 1971, the Board gave approval to CTR to take over and operate, as a CTR Special Project, an information and retrieval system and to computerize medical literature, articles, and other published documents relating to tobacco and health, with the expenses to be borne by the participating companies. At the first annual meeting of CTR members after incorporation, the members approved the name Information Systems for this special project. Information Systems became a division of CTR which analyzed, summarized, indexed, and retrieved scientific and medical literature at the direction of Defendants' attorneys. Defendants relied on this division of CTR to review the medical literature relating to smoking and health even though they continued to monitor literature in-house. CTRMIN-BD000001-0303 at 0007-0008 (JD 093208); CTRMIN-MOM000001-0015 (US 21145); Zahn PD,Massachusetts v. Philip Morris, 5/28/98, 143:8-23; Lisanti PD, Arch v. American Tobacco, 6/10/97, 101:10-102:15.
351. The Report of the Chairman to the second annual meeting of CTR members held on January 28, 1972, revealed that Information Systems had been changed to Information Retrieval Division. The Division was staffed by a group of twenty-six people and financed separately from the general budget; its name was eventually changed to the Literature Retrieval Division. CTRMIN-MOM000016-0034 (US 21170); McAllister TT, 3/21/05, 16161:16-16162:6; Duffin PD, Munn, 1/7/87, 161:17-25, 164:23-167:10, 171:7-15; DXA0630917-1033 at 0964-0965 (US 75927); WAX001 0698-0786 at 0771-0772 (US 75555); USX6400001-0527 at 0347-0350 (US 89561); USX6400001-0527 at 0225-0227 (US 89561); USX6400001-0527 at 0136-0138 (US 89561).
352. CTR maintained a separate checking account called CTR Special Account No. 1 for the Literature Retrieval Division. CTR requested, received, and deposited monies from its sponsor companies for the Literature Retrieval Division. Pollice WD, 3:3-5:1.
353. In addition to the CTR Literature Retrieval Division, Defendants American, B W, Liggett, Lorillard, Philip Morris, and Reynolds also continued to fund Special Account No. 3 through Edwin Jacob's firm. The account was designated as a "File for Litigation" and was "used to maintain an office where several doctors work on an analysis of medical literature." 682150942-0942 (US 86491).
354. Yearly expenditures for the Literature Retrieval Division continued to be shared by Defendants from 1970 until the Literature Retrieval Division ceased to exist in 1983. 70124547-4547, CTRLRD004193-4193 (US 31557); 70124546-4546, CTRLRD004192-4192 (US 31556); 70124548-4548, CTRLRD004233-4233 (US 31558); 70124544-4544, CTRLRD004190-4190 (US 31554); 70124545-4545, CTRLRD004191-4191 (US 31555); 11275453-5453, CTRLRD004232-4232 (US 26402).
355. During her tenure in the Public Affairs Division of the Tobacco Institute, Anne Duffin obtained source material from the Literature Retrieval Division to assist her in writing articles, pamphlets, handouts, and other publications. Examples include "Smoking and Health 1964-1979, The Continuing Controversy," "Cigarette Smoking and Cancer: A Scientific Perspective, 1982," and "Cigarette Smoking and Heart Disease, 1983." Duffin PD, Munn v. Philip Morris, 1/7/87, 161:17-162:3, 162:20-163:15, 164:23-168:5, 169:4-16, 171:7-15, 173:2-174:3, 174:11-19, 176:18-22; 519838352-8517 (US 87707); 519838518-8621 (US 87708); 519838622-8674 (US 87709).
356. Alexander Spears's informal review report described the Literature Retrieval Division operation as "nearly complete coverage of the world medical literature on tobacco and health available at each user location with essentially state of art information search and retrieval capability." Because the Literature Retrieval Division system was useful to Lorillard "in the area of tobacco and health related to litigation and governmental regulatory proceedings," Spears supported the decision by Lorillard to fund the Literature Retrieval Division "since it seems an integral part of defending the industry and this company in the defined area." Lorillard funded the Literature Retrieval Division from 1980 through 1983. 01422327-2328 (US 20050); Stevens WD, 42:19-43:22; DXA0630917-1033 at 1025 (US 75927).
357. In September 1981, the Ad Hoc Committee, including William Shinn and Robert Northrip from Shook, Hardy Bacon, met and discussed a proposal to sever the Literature Retrieval Division from CTR and reorganize it, along with the Central File (sometimes referred to as the Tobacco Litigation File), into a separate corporation. By providing litigation support services to counsel defending smoking and health actions, the separate corporation would be able to provide more extensive and reliable work product protection for the Literature Retrieval Division's microfilmed, computerized database and abstracts on smoking and health information when discovery was sought in litigation. See (no bates) (US 36321 at 275). The proposal, which was ultimately adopted and implemented, recommended that: (1) the Literature Retrieval Division be removed to the custody of defense counsel into a new business corporation to be formed called LS, Inc., the stock of which would be owned by the four law firms; (2) payments to LS, Inc. by the law firms would be on a per client market share basis for all functions; (3) the only users of the system would be the four law firms plus Covington Burling, representing the Tobacco Institute; (4) the only use of the system would be for litigation, which would be defined to include administrative proceedings and legislative hearings, at which proceedings and hearings the law firms were representing their clients; and (5) Fred Giller, then — Director of CTR's Literature Retrieval Division, would be appointed President and CEO of LS, Inc. Stevens WD, 42:19-43:22; DXA0630917-1033 at 0964-0965 (US 75927); USX6400001-0527 at 0225-0227 (US 89561); USX6400001-0527 at 0136-0138 (US 89561); USX6400001-0527 at 0347-0350 (US 89561); ATX9275490271-0280 (US 36231); LG2000741-0750 (US 36269); 515848825-8830 (US 21583); 2015020054-0054 (US 36628); 2015020046-0046 (US 36627); 2015020038-0038 (US 36626); 2015020032-0032 (US 36625); 2015020021-0021 (US 36624).
358. In March 1983, the Committee of Counsel approved the implementation and incorporation of LS, Inc. LG2000823-0832 (US 21544); 2047663658-3695 (US 20481); 2047663658-3695 (US 20481).
H. Defendants' Organizations Focused on ETS Issues
359. From the 1970s forward, members of the Enterprise, specifically Philip Morris, Reynolds, Lorillard, B W, BATCo, and the Tobacco Institute on behalf of its member companies, pooled their resources and coordinated their activities with respect to passive smoking, or environmental tobacco smoke ("ETS"), issues through a variety of committees and organizations (discussed in detail at Section V(G)(6), infra). The aims of the many different industry ETS organizations were to coordinate an industry position on passive smoking and to fund projects that would generate data supporting the industry's position that tobacco smoke was not a proven health risk to nonsmokers.
360. The first industry committee dedicated specifically to addressing ETS concerns was formed as early as 1975. The committee, chaired by Shook, Hardy Bacon counsel Don Hoel, met under the direction of the Research Liaison Committee to address ETS-specific projects which, at the time, were funded via Special Account 4. 1003293761-3763 (US 86502); 1003293752-3753 (US 20169), (US 75204); 500294698-4698 (US 24145); 504126505-6507 (US 24216); 03638976-8979 (US 46483); 01337388-7388 (US 86504). Regular members of this committee, sometimes referred to as the Public Smoking Committee or Advisory Group, included company scientists from Reynolds, Philip Morris, B W, and Lorillard. 1000125386-5386 (US 86505); 504339411-9412 (US 86506).
361. Defendants reestablished this committee in 1984 under the name of the Tobacco Institute ETS Advisory Committee, or TI-ETSAG. ETSAG met almost monthly to propose, review, and manage scientific projects that the Committee of Counsel approved for funding. Regular members of ETSAG also included company scientists from Reynolds, Philip Morris, B W, and Lorillard, in addition to Tobacco Institute representatives, Don Hoel, and Covington Burling attorney John Rupp. 2021004058-4064 (US 20339). While neither Liggett nor American directly participated in ETSAG, both participated with the funding of approved projects. Id. at 4058; see also Adams PD, United States v. Philip Morris, 6/18/02, 226:15-235:20, 236:2-237:24, 255:24-256:18, 257:8-20, 262:13-263:5, 266:7-268:18, 284:1-24, 285:5-289:6.
362. The Center for Indoor Air Research ("CIAR") was formally established in 1988 to carry out industry-funded research related to passive smoking; the original charter members were Defendants Philip Morris, Reynolds, and Lorillard. 506300804-0814 at 0804 (US 20756); 506647151-7156 at 7151 (US 20761); 321141105-1144 at 1142 (US 20588); TIMN0014390-4393 (US 62782); 2071412978-3143 at 3082-3096 (US 23061*); 506662315-2316 (US 75277). See also Adams PD, United States v. Philip Morris, 6/19/02, 302:4-15, 304:5-306:11. Although CIAR had a Scientific Advisory Board to review the merit of project proposals, only the CIAR Board of Directors had authority to approve a project for funding. Moreover, a large number of industry-favorable CIAR projects were approved directly by the CIAR Board of Directors without any review by its SAB. 517577761-7761 (US 20867).
363. These committees and organizations furthered Defendants' collective goals by: (1) coordinating and funding Defendants' efforts to generate evidence to support its position that there remained an "open controversy" as to the health implications of exposure to ETS; (2) leading the attack on the Government's efforts to act on evidence linking ETS to disease; and, (3) in the case of CIAR, appearing to be an independent research funding organization when it was really a facade for concealing industry participation in certain studies.
I. International Organizations, Committees, and Groups
1. Overview
364. There is overwhelming evidence demonstrating Defendants' recognition that their economic interests would best be served by pursuing a united front on smoking and health issues and by a global coordination of their activities to protect and enhance their market positions in their respective countries. To further their shared objectives, the Defendants, over an extended period of time, created, controlled, used, or participated in an astonishing array of international entities, including, among many others (all of which will be discussed infra), the Tobacco Manufacturers' Standing Committee ("TMSC"), which became the Tobacco Research Council ("TRC") and then the Tobacco Advisory Council ("TAC"); the International Committee on Smoking Issues ("ICOSI"), which became the International Tobacco Information Center, Inc. ("INFOTAB") and then the International Tobacco Documentation Center ("TDC"); and the Center for Cooperation in Scientific Research Relative to Tobacco/Centre de Coopération pour les Recherches Scientifiques Relatives au Tabac ("CORESTA").
365. Defendants coordinated their efforts to further their economic interests through multiple meetings around the globe. These numerous meetings, held between the 1950s and at least 2000, were scheduled by correspondence and memoranda that were sent via facsimile and by mail. 536202391-2391 (US 86553); 2025495788-5788 (US 22856); 2025495795-5795 (US 26848); 2065260331-0331 (US 86555); 2024771391-1391 (US 86556); 2025477955-7955 (US 26834); 700533941-3941 (US 86558); 503089421-9433 (US 86573); 2078348038-8038 (US 86906); 700533921-3921 (US 88565); 300543355-3356 (US 88506). While the cited exhibits are to meetings in the 1990s, many other exhibits cited throughout these Findings pertain to meetings between the 1950s and 2000.
366. Agendas were usually transmitted in advance of the meetings and Defendants agreed, through correspondence, which of their industry representatives would and should attend. 2023244315-4315 (US 86585); 2023244363-4363 (US 86586); 2028454705-4705 (US 22852); 2028360079-0079 (US 86587); 2023897308-7308 (US 37062); 2024210630-0631 (US 22868); 2051810327-0327 (US 86588); 2065260325-0325 (US 86589); 700533917-3917 (US 86590); 2065260328-0328 (US 66825); 300543980-3980 (US 87574); 300543954-3954 (US 87575); 300543357-3358 (US 87576); 300512229-2232 (US 88507); 300543968-3968 (US 67755); 300543811-3813 (US 88508); 2025495656-5656 (US 88509); 2078742951-2951 (US 27724); 2078742952-2952 (US 27725); 2078742954-2954 (US 27727); 2078742955-2955 (US 27728); 2502250184-0185 (US 45981); 2047315966-5966 (US 88512); 300543817-3817 (US 88513); 2065260344-0344 (US 88514); 2072424257-4257 (US 88516); 2072424213-4214A (US 88517); 2046546145-6145 (US 88524); 2072417268-7269 (US 88528); 321569333-9336 (US 88536); see also Blackie WD, 101:13-104:21, 127:3-140:3.
367. In many instances, meeting participants summarized the substance of the meetings, recorded the nature of the discussions, and identified the company representatives in attendance. 507973108-3109 (US 86598); 536202400-2404 (US 86599); 507974116-4116 (US 51286); 2025493306A-3307 (US 86600); 2023897315-7318 (US 86601); 2051809368-9369 (US 86603); 2028363540-3549 at 3541 (US 86604); 2028372583-2596 at 2594 (US 22926); 517002090-2091 (US 66527); 300512244-2245 (US 67752); 300543979-3979 (US 87578); 300545676-5680 (US 87579); 300545701-5704 (US 87581); 300543440-3454 (US 87582); 300544202-4208 (US 87583); 2047315978-5978 (US 88636); 2078742947-2948 (US 27721); 2078742962-2963 (US 45192); 2078742949-2949 (US 27722); 300543360-3366 (US 88545); 300543940-3942 (US 88546); see also Blackie WD, 104:22-113:20; 128:7-132:18.
368. Defendants used international meetings to identify and coordinate the respective responsibilities of the many international organizations affiliated with the tobacco industry such as the International ETS Management Committee ("IEMC"), Confederation of European Community Cigarette Manufacturers Limited ("CECCM"), TAC, INFOTAB, and others. Scores of documents demonstrate the sophisticated planning and coordination, as well as the division of labor, between the industry's international organizations. Blackie WD, 101:13-104:21, 104:22-113:20. To cite just one example of allocation of responsibilities, W. David Rowland of Rothman's International summarized the "end product" of a July 25, 1995 IEMC meeting by stating: "However, it was eventually resolved: IEMC will develop the messages (globally), CECCM will deliver these messages (in Europe)." 900006204-6204 (US 88482).
369. United States Summary Exhibit 17361(A) summarizes a vast number of Defendants' memoranda, agendas, and meeting minutes, all used to coordinate Defendants' meetings throughout the world. As this Summary Exhibit demonstrates, high-level decision-makers, including corporate officers, legal counsel, and experienced public relations and scientific personnel, attended Defendants' international meetings. It is clear from the frequency with which the names of the following individuals appear in the Summary Exhibit that they each played a central role in coordinating Defendants' efforts and ensuring that a united front was developed and followed on smoking and health issues: Sharon Blackie, a BAT scientist; John Rupp, Covington Burling attorney; Charles Green, RJR Principal Scientist; Helmut Reif, Principal Scientist at a Philip Morris subsidiary and member of CIAR Board of Directors; Richard Carchman, Philip Morris Director of Scientific Affairs; J. Kendrick Wells III, B W General Counsel; and Christopher Proctor, BATCo Head of Scientific Regulatory Affairs at Chadbourne Parke in United States between 1989 and 1993. 401033458-3463 (US 85530); 507973108-3109 (US 86598); 507974116-4116 (US 51286); 507782317-2318 (US 20788); 2078742962-2963 (US 45192); 2023053733-3733 (US 86513); 2023897315-7318 (US 86601); 2072424257-4257 (US 88516); 2047315978-5978 (US 88636); 202502102-2134 (US 20346); 506617595-7596 (US 20760); 507782317-2318 (US 20788); 681000290-0293 (US 21015); 2024270524-0527 (US 75083); 505347172-7174 (US 20739); 2024210630-0631 (US 22868); 681000290-0293 (US 21015); 321569333-9336 (US 88536).
370. Defendants used their many international meetings as opportunities to meet, coordinate and cooperate in identifying "threats" to the industry and to develop responses to these perceived "threats" as they evolved over time. For example, Sharon Blackie, John Rupp, Matt Winokur, J. Kendrick Wells, Chadbourne Parke attorney Thomas Bezanson, and Christopher Proctor met on several occasions to discuss the activity of EPA and IARC, including the status and timing of the impending EPA risk assessment (discussed at Section V(G)(2)(¶¶ 3340-3344),infra) and IARC study (discussed at Section V(G)(2)(¶ 3347), infra) and Defendants' potential responses thereto. Similarly, Defendants used INFOTAB to prepare a response to the perceived threats to the tobacco industry posed by the forthcoming IARC report. 2021595753-5910 at 5769, 5897, 5903 (US 85541); 300543979-3979 (US 87578); 300543954-3954 (US 87575); 2065260328-0328 (US 66825); 2072417681-7682 (US 89132); Blackie WD, 94:6-95:5; Blackie WD, 143:18-144:4.
371. Defendants closely tracked regulatory "threats" to the industry in the United States. For example, the minutes of an August 26, 1996 CECCM meeting in Amsterdam read:
[N]ational Developments. USA. President Clinton has taken the decision to put tobacco under FDA jurisdiction. This decision will be challenged by the cigarette manufacturers. Since this decision has reactivated the debate on children and smoking, the Chairman will raise the issues again at the next Board meeting.
800123779-3782 at 3781 (US 89137).
372. ICOSI, one of the organizations that afforded Defendants an opportunity to meet regularly, explicitly recognized the international nature of the "threat" to Defendants' business. An April 1979 ICOSI document noted:
The problems and attacks proposing restrictions of smoking and normal commercial activities like advertising and publicity have become highly international. . . . No one industry in one country nor any one company can wage and win the battle against this sort of organised world-wide attack. . . . The whole Industry, companies and Trade Associations alike must unite with common targets and common approaches.
1003717317-7330 at 7318 (US 86518) (emphasis in original).
373. The extent to which Defendants' far-reaching cooperative international conduct affected United States' interests is demonstrated by the following: meetings were held on United States soil; representatives of United States companies and organizations, including Defendants, attended meetings of the cooperating organizations both in the United States and abroad; at these meetings extensive consideration was given to the impact of United States litigation on overseas tobacco companies, as well as the impact of overseas development upon litigation in the United States; and express coordination with the United States tobacco industry, including Defendants, was planned and organized. For instance, in 1973, the Tobacco Institute's Committee of Counsel discussed expanding the Tobacco Institute's central role in the Enterprise to offshore activities, including combating foreign anti-cigarette activity. The purpose of expanding the Tobacco Institute's role was to preserve Defendants' position on smoking and health abroad and prevent erosion of public industry positions that had been adopted and publicized in the United States by the actions of non-domestic companies.
It is preferable for the domestic industry to act together to combat foreign activity than for individual companies to act. On the subject of smoking and health the domestic industry has acted in concert through the Institute in the past, as it is legally permitted to do and presumably intends to continue to do. Thus, the policy with respect to combating anti-cigarette activity abroad would be but an extension of the domestic policy.
502429369-9373 (US 29556); TI16740660-0663 (US 72403); 2501029891-9901 (US 20557); TI04962210-2211 (US 67250); see also 1002610069-0069 (US 86541).
374. Additional examples of the nexus between Defendants' international organizations and the United States include a December 1978 memorandum asserting that the effectiveness of ICOSI required coordination with and input from the Tobacco Institute and Shook, Hardy Bacon, 2501018326-8327 (US 21505); a September 1983 INFOTAB meeting, held in Washington, D.C., concerning "[h]ow to use a tobacco network-U.S. hearings," 2501021486-1489 (US 25366); INFOTAB's 1991 retention of Lovell, White Durrant to provide legal clearance for all documents related to smoking and health, and of Chadbourne Parke to review the documents with an eye toward making sure that "due consideration is given to the legal position in the United States," 2023237649-7650 (US 87025); a January 1993 CECCM meeting in Bonn, Germany, considering the "E.P.A. report on risk assessment of ETS" and "[r]eview of the published literature on smoking and work performance prepared by Covington Burling," 300543360-3366 (US 88545); a February 1997 meeting concerning IARC Action, scheduled to "[r]eview status of study release . . . expectations re: timing, risk, number, U.S. vs. European release" and "U.S.-based Scientific Assessment Team (on all in event of publication in U.S.-based journal)," 2072417268-7269 (US 88528); and a May 1997 International Counsel Meeting, held in New York, regarding the "[i]mpact of US litigation resolution discussions on other countries," as well as British and Australian matters, 321569333-9336 (US 88536).
375. BATCo participated in many industry meetings related to ETS issues, as shown in US 18325, a demonstrative exhibit showing a sampling of the many meetings that included direct contact with one or more representatives of BATCo. 300543979-3979 (US 87578); 517002090-2091 (US 66527); 300512229-2232 (US 88507); 507974116-4116 (US 51286); 300543968-3968 (US 67755); 300545701-5704 (US 87581); 2025495795-5795 (US 26848); 503089421-9433 (US 86573); 2051810327-0327 (US 86588); 2065260328-0328 (US 66825); 321569333-9336 (US 88536).
2. TMSC — Tobacco Manufacturers' Standing Committee
376. On February 12, 1954, the British Minister of Health made a statement before the House of Parliament regarding the report of a special committee appointed by the British Health Ministry suggesting that the statistical evidence pointed to a possible causal relationship between smoking and lung cancer. The British tobacco manufacturers in the United Kingdom approached the Minister of Health and, on his advice, agreed to donate £250,000, to be spread over seven years, to the Medical Research Council for research into smoking and lung cancer. Brandt WD, 76:1-12; 110070785-0842 at 0788 (US 20270); 321310317-0342 (JD 031027); (no bates) (JD 011382).
377. In March 1954, John Hill of Hill Knowlton, TIRC's public relations counsel, and Alan Campbell-Johnson, the London associate of Hill Knowlton, met with D.M. Oppenheim, BATCo Chairman; Robert Sinclair, Imperial Tobacco Chairman; and E.P. Partridge, Imperial Tobacco Director and Secretary, to discuss the newly-formed TIRC and a possible relationship between TIRC and the tobacco manufacturers in the United Kingdom. Hill outlined proposed plans, policies, functions, and responsibilities for TIRC, the TIRC SAB, and the TIRC Research Director, and showed the group proofs of the about-to-be published white paper (detailed discussion of Hill Knowlton/TIRC white paper at Section III(B), supra). The British executives offered suggestions for changes to the white paper because "[q]uite naturally the British Tobacco group is vitally interested in what we do because the repercussions of what happens in the United States will affect Great Britain and vice versa." Timothy Hartnett, President of B W, and other members of the TIRC Board "had asked [Hill] to discuss with [the BATCo and Imperial Tobacco executives] the possibility of some form of liaison between the two groups" and to suggest
that this could be worked through Hill Knowlton, Inc. and our London Associate Campbell-Johnson, or in any other way they might suggest. The reaction to the idea of liaison was most favourable.
TLT0900159-0161 (US 87720). The arrangement by which Campbell-Johnson would "act as liaison through which the British industry could clear information regarding developments which it desired to communicate to TIRC" was confirmed by Timothy Hartnett when he was in London later in the spring of 1954. TLT0902041-2064 at 2060 (US 88360).
378. In June 1956, the Tobacco Manufacturers' Standing Committee ("TMSC") was formed by BATCo and other United Kingdom tobacco manufacturers, giving
formal status to the co-operation in research of the group of manufacturers who in 1954 made a donation of £250,000 to the Medical Research Council for investigation into the causes of lung cancer.
Its stated purpose was
to assist research into questions concerned with the relationship between smoking and health, to keep in touch with scientists and others working on this subject in the United Kingdom and abroad, and to make information available to scientific workers and the public.
Geoffrey F. Todd was appointed Director of TMSC. Alan Campbell-Johnson, Hill Knowlton's London associate, was appointed public relations consultant to TMSC. TSMC occupied a position in the United Kingdom analogous to the position of TIRC in the United States. 110070785-0842 at 0788-0789 (US 20270); TLT0900822-0825 (87725); (no bates) (JD 011382); Read TT, 3/21/05, 16327:25-16328:14.
379. As of August 31, 1959, the members of TMSC were Anthony McCormick and D.M. Oppenheim of BATCo; Alexander H. Maxwell; E.R. Adler of Carreras; R.S.W. Clark and E.J. Partridge of Imperial Tobacco; E.J. Foord of Gallahers; P.A.G. Phillips of Godfrey Phillips, Ltd.; J. Wallington of Ardath Tobacco Co., Ltd.; and F.H. Wright of J. Wix Sons, Ltd. TMSC also had a Technical Subcommittee which was comprised of members of the various UK tobacco manufacturers. (no bates) (US 47043).
380. In June 1957, the Medical Research Council in England issued a statement, supplemented by a statement from the Minister of Health, condemning tobacco as a major cause of lung cancer and calling for a program by local health authorities and their education departments that would inform the general public of the risks of smoking. CTR-TIRC-MIN000001-0252 at 0130 (JD 093292).
381. TMSC member companies in the United Kingdom and TIRC member companies in the United States coordinated their efforts to promote the open question on the relationship between smoking and disease and to deny causation. After Timothy Hartnett, TIRC Chairman, traveled to England to meet with TMSC members in June 1956, Campbell-Johnson wrote to John Hill that Hartnett's "presence at that particular moment should do much materially to help to get relations between TIRC and the new committee [TMSC] off to a good start." Campbell-Johnson ended the letter by counseling that:
[C]lose thought is needed on the relationship between TIRC and TMSC and the public relations implications of this are clearly left to our discretion to consider. While it is fully appreciated that the operations are, in fact, and should appear to be entirely separate, there clearly will be occasions when pronouncements emanating from one or other side of the Atlantic, from our respective authorities, can be usefully promoted at both ends. There now exists a potential interest in TIRC dicta on this side of the Atlantic and perhaps in TMSC statements on your side.
TLT0900822-0825 (US 87725).
382. Minutes of a November 15, 1960 TIRC meeting state, in part:
A close working relationship is maintained with the Tobacco Manufacturers' Standing Committee in England, which organization parallels the TIRC. Although methods of operation are considerably different, our cooperation, both in research and public relations, has proven very valuable.
CTR-TIRC-MIN000001-0252 at 0183 (JD 093292).
383. Representatives from TMSC, which included BATCo representatives, came to the United States in 1958 and met with representatives from TIRC, American, Liggett, and Philip Morris, among others. Clarence Cook Little, the first scientific director of TIRC, was among the individuals interviewed. A memorandum, drafted by BAT representatives and titled "Report on Visit to U.S.A. and Canada, 17th April-12th May 1958," demonstrated that although "Defendant manufacturers continued to assert publicly that there was no proof that cigarette smoking caused any disease," these public positions clearly "did not accord with the private views of their own scientists." 105408490-8499 at 8492 (US 21135); Harris WD, 99:15-100:9.
384. G.F. Todd, Director of TMSC, attended a number of TIRC SAB meetings in the 1960s. CTRMIN-SAB000001-1061 at 0187, 0190, 0206, 0207, 0230 (JD 090960).
385. In 1963, TMSC decided to conduct its own smoking and health research program. To reflect that fact, TMSC was renamed the Tobacco Research Council in January, but retained the same purpose and mission as its predecessor. 321310317-0342 (JD 031027); Read TT, 3/21/05, 16327:25-16328:14.
3. TRC — Tobacco Research Council
386. When TMSC changed its name to the Tobacco Research Council ("TRC") in 1963, TRC continued to be funded by BATCo and other United Kingdom tobacco manufacturers. TRC built the Harrogate Labs in England. BATCo sat on the board at the Harrogate Laboratories and was one of the entities that directed the research at Harrogate. Research was conducted at the TRC laboratories in Harrogate from 1962 through 1974, when Harrogate was sold. Its projects included mouse skin painting, inhalation studies, other biological assays, and nicotine pharmacology. Harris TT, 10/18/04, 2752:11-14; Henningfield TT, 11/29/04, 7204:14-19; 321310317-0342 (JD 031027); Read TT, 3/21/05, 16329:5-9.
387. An October 1964 TRC trip report confirmed that Sir Philip J. Rogers, TRC Chairman, and Geoffrey F. Todd, TRC Director, had visited the United States and met with representatives of Defendants RJR, American, B W, Philip Morris, Liggett, Lorillard, CTR, and the Tobacco Institute, as well as Hill Knowlton executives and attorney Edwin Jacob, in a series of meetings. The United States manufacturers' main criticism of TRC's bio-assay research at Harrogate was that the research was an "implied admission that cigarettes are harmful." B W considered TRC's research policy "particularly prejudicial to them through their association with B.A.T." The TRC representatives agreed that Harrogate bio-assay research might be seen as an implied admission, but pointed out that
TRC constantly bore in mind the possible repercussions of its actions in U.S.A. and that T.R.C. research was based on the needs of the situation in the U.K., including a need from the legal point of view to give no grounds for an accusation of negligence against the manufacturers.
At one of the meetings with Philip Morris, "[t]he informal agreement between TRC members not to make health claims was explained." 1003119099-9135 at 9106, 9108, 9115 (US 20152); Read TT, 3/21/05, 16335:11-14.
388. Correspondence from Addison Yeaman, B W General Counsel, to Anthony D. McCormick, BATCo's company secretary, in February 1966 sought to arrange for "a closer liaison between Harrogate, Hamburg and our C.T.R." It noted that "the cigarette companies in the U.S. have given the prime responsibility in the health area to their lawyers" and suggested that the lawyers, who direct "day-by-day decision and policy directions . . . in the first instance" could facilitate this communication, in lieu of the "executive heads" of the respective tobacco companies. The letter noted that Ed Finch, as Chairman of the Executive Committee of the Tobacco Institute and President of B W, could head the group and that Ed Jacob of Jacob Medinger, counsel to CTR, should be included as he "is on retainer from RJR as well as B W." Yeaman indicated in his letter that he was "troubled" that a prospective Harrogate research report might
concede a significant causal relation between the use of tobacco and cancer of the lung. . . . [W]e would hope to be afforded the opportunity of consulting with the people on your side concerning the way Harrogate's work is presented, admittedly with the hope of "slanting" the report.
680204115-4117 (US 20990); Read TT, 3/21/05, 16335:1-10, 16335:17-16336:5.
389. On February 14, 1967, A.W.H. Stewart-Moore, a member of the TRC Executive Committee, sent a letter to Virgil D. Heger, Executive Vice President of American Tobacco, notifying him that TRC would be sending a delegation of scientists to the United States in March to discuss nicotine with scientists designated by CTR. Despite the scientific nature of the meetings, Stewart-Moore indicated that the meetings would include "the lawyers from the major American tobacco manufacturers." 0060293378-3378 (US 85326).
4. TAC — Tobacco Advisory Council
390. The TRC was re-named the Tobacco Advisory Council ("TAC") on August 31, 1978. 109840381-0383 at 0383 (US 20261); Read TT, 3/22/05, 16354:12-20, 16407:6-11.
391. Various members of the Enterprise participated in the TAC, including BATCo, RJR, and Philip Morris, John Rupp of Covington Burling and Don Hoel of Shook, Hardy Bacon. The last TAC meetings occurred in May of 1999. (no bates) (US 17361); 505347172-7174 (US 20739); 508226799-6804 (US 75279); 2025025510-5512 (US 37221); Henningfield TT, 11/29/04, 7277:18-23; see also 300545676-5680 (US 87579); 300543360-3366 (US 88545); 800123779-3782 (US 89137).
392. Alex Marine, BATCO counsel, in notes prepared on October 3, 1983 of a recent TAC Meeting on Smoking and Health, stated that:
[I]n BAT's view, the biggest single threat facing the industry, in both this country and elsewhere, is the issue of smoking and health. Because of this, we believe that the industry must be united in its universal stand on this issue and that no member company should seek to exploit the smoking and health issue for its own commercial advantage. . . . The industry is acutely aware of the possible impact on our business of the Product Liability laws around the world, and in particular those in the U.S.A. . . . I need not remind you that over the past 20 years, no less than 100 civil suits in the U.S.A. have been successfully defended by our Industry. Continuous success has not been coincidental. On the contrary, it has very largely been achieved by a co-ordinated and consistently applied self-discipline on the subject of smoking and health within the Industry.
301043570-3571 (US 93210); Read TT, 3/22/05, 16406:24-16408:24.
393. At a November 16-17, 1983 meeting, the TAC member company tobacco research directors agreed to modify a TAC publication, "Review of Research Activities," in response to
the eleventh hour intervention by BAT lawyers on many aspects of the galley proof of the publication [because of] the extreme sensitivity of many of the issues, and of the vital need to be safe rather than sorry.
The participants agreed to replace summaries of the results of grantees' research — which the researchers had written — with "much shorter statements of results prepared by TAC and agreed to by the grantees." 109840381-0383 at 0383 (US 20261).
394. TAC continued the British tobacco industry's relationship with public relations and research entities in the United States with respect to ETS issues. A February 24, 1986 RJR interoffice memorandum from Charles Green, RJR scientist, to his superior, Alan Rodgman, concerning the International ETS Working Committee stated:
A proposal has been made to Mr. Don Hoel, an attorney for Shook, Hardy Bacon and chairman of the TI-ETS Working Committee, that more formal cooperation be established between the scientific committees concerned with ETS.
The memorandum further pointed out that members of the TAC were
prepared to meet with representatives of the U.S. Tobacco Institute ETS Working Committee in London on April 8th. Mr. Hoel has requested that Dr. Tom Osdene of Philip Morris and I accompany him to this meeting. It is expected that this will be the first of two or three meetings per year where the various committees will exchange scientific information and coordinate proposed studies.
Green requested permission from RJR to attend the meetings as "the value of our participation in these meetings should be obvious." Handwritten comments on the typed memorandum read:
Bob: Neither legal nor I have a problem with this. In fact, Mary Ward thinks it's a great idea. May we have your approval for Dr. Green to participate? — Alan 2/24/86; Approved! Bob 2/26/86.
508192982-2982 (US 86533). In 1986, Mary Ward served as Assistant Counsel in RJR's R D Department. Ward WD, 2:13-19.
395. On April 8, 1986, a "joint meeting of the ETS advisory groups from West Germany, the United Kingdom, and the United States as well as the INFOTAB Board of Directors" was held at TAC's London office to discuss "scientific and public relations problems related to environmental tobacco smoke." The meeting included representatives from Defendants Philip Morris, BATCo, RJR, and the Tobacco Institute, as well as "the entire Tobacco Advisory Research Committee," and the law firm of Shook, Hardy Bacon. The attendees discussed various research projects which could be used to address proposed regulations with respect to ETS, including projects and programs sponsored by the Tobacco Institute and the "cooperative [United States] industry study to measure carbon monoxide, nicotine, and particulate matter in restaurants." 505347172-7174 at 7172-7173 (US 20739); 2022932502-2506 (US 22828); Ward WD, 70:21-71:16.
396. Representatives of TAC also met with the Tobacco Institute, Germany's Verband der Cigarettenindustrie ("Verband"), and Japan Tobacco International in Washington, D.C. on March 18-19, 1987, to address the need for increased cooperation among the participating countries and on an international level. The meeting was designed to inform participants about the current status of ETS scientific research, public affairs, and political nuances in each of the countries. The Verband is the German equivalent of the Tobacco Institute. Philip Morris International, BATCo, and other cigarette manufacturers are affiliated with the Verband. TI00682162-2163 (US 21240); 2501458142-8148 (US 27951); Parrish TT, 1/26/05, 11163:21-11164:4; Ogden TT, 3/16/05, 15831:19-22.
397. An April 6, 1987 RJR Interoffice Memorandum from Charles Green to Alan Rodgman, and copied to several individuals, including Mary Ward, discussed the joint meeting held in Washington, D.C. in March 1987. This April 1987 memorandum described the meeting discussions on "Industry-Sponsored Research on ETS," "Non-Industry Sponsored Research," "Current Public Affairs/Political Concerns," and "Future Research Needs" and stated:
The first session of the second day included presentations by Trevor King, Gerhardt Scherer, Y. Shimitzu, Bill Kloepfer, and John Rupp. There were many similarities among all the presentations and the need for close cooperation between scientists and public relations professionals was expressed repeatedly. R.J. Reynolds was praised by several speakers as an example of an effective research and public relations relationship.
This memorandum further stated that:
Dr. Spears stated that the Industry has only a short time (5 years) to solve the ETS problem. Vigorous denial is not a satisfactory defensive strategy. All agreed that the most significant ETS problem facing the Industry is the result of epidemiological studies which indicate a low risk related to ETS exposure. More industry sponsored research is needed to address this issue. . . . All of the attendees left this meeting with a better appreciation of the international ETS problem. Concerted action is needed to improve the Industry's position.
A proposed follow-up meeting "with the purpose of generating a world-wide ETS action plan" is further described. 508226799-6804 (US 75279); Ward WD, 71:17-72:6, 72:10-73:17.
398. Sharon Blackie, formerly of BATCo and B W, and one of the major organizers of the Defendants' international initiatives, acknowledged that she collaborated with representatives of other tobacco companies in fashioning consistent ETS public statements. Defendants who cooperated in this way included BAT, Philip Morris and RJR. Blackie WD, 17:3-14.
399. Defendants circulated revised versions of TAC publications. According to a March 10, 1987 internal memorandum, Philip Morris planned to distribute the TAC publication "Tobacco Smoke and the Non-Smoker" to industrial organizations on behalf of the Enterprise once the document had met with the approval of industry attorneys. 2501009269-9269 (US 27917).
400. According to a March 17, 1987 letter to Hans Verkerk of INFOTAB, William Kloepfer of the Tobacco Institute planned to "compare notes on the ETS issue" with his colleagues at TAC before attending a steering committee meeting in connection with the Sixth World Conference on Smoking and Health. TI12261173-1173 (US 62338).
401. In a May 27, 1987 memorandum, Tobacco Institute Vice President William Kloepfer reported to Samuel Chilcote, Tobacco Institute President, about his meetings with TAC in London. According to Kloepfer's memorandum, he gave the TAC public relations committee an overview of Tobacco Institute issues and management. According to Kloepfer, TAC recognized ETS as its primary issue and wanted to adapt Tobacco Institute consultant Gray Robertson's video for TAC's use. TI05261937-1938 (US 62213); TIDN0012090-2091 (US 77023).
402. TAC and the Tobacco Institute continued to share information on how to confront the ETS issue publically. On August 23, 1989, Clive Turner, TAC Deputy Chief Executive, wrote to Sam Chilcote, Tobacco Institute President, requesting an ETS publication kit prepared by the Tobacco Institute. TI12240317-0317 (US 86537).
403. In January 1994, TAC changed its name to the Tobacco Manufacturers Association ("TMA") because "the name TAC did not clearly reflect the change of focus in its role to that of a trade association for the UK companies." TMA members included Defendants BATCo and RJR. TMA held meetings as recently as 2000, the date of the discovery deadline established in this case. 321103764-3771 at 3764 (US 67807); 321103761-3761 (US 28286); 321310317-0342 (JD 031027); (no bates) (US 17361).
5. ICOSI — International Committee on Smoking Issues
404. August 2, 2006 On December 3, 1976, Hugh Cullman, Executive Vice President of Philip Morris, talked by telephone with R.A. (Tony) Garrett, Chairman of Imperial Tobacco. Cullman's notes from that call indicate that Garrett explained he had been exploring, with a number of major tobacco companies, including Defendants BATCo and RJR, as well as Rothmans International and Reemtsma (Germany), whether company heads might be prepared "to meet discreetly to develop a defensive smoking and health strategy, to avoid our countries and/or companies being picked off one by one, with a resultant domino effect." The initial objective of this group would be
to develop a smoking and health strategy which would include a voluntary agreement that no concessions beyond a certain point would be voluntarily made by the members [to their governments] and, if further concessions were required by respective governments, that these not be agreed to and that governments be forced to legislate.
The proposed agenda for the meeting included
Consideration of the international dimension to smoking and health. This might include such matters as . . . how do developments in one country affect others.
Defendants' effort was ultimately termed "Operation Berkshire" (discussed further at Section V(G)(6)(a)((2)), infra). 2025025347-5348 (US 75149); 2025025286-5286 (US 20407); 2025025290-5291 (US 22980); 2025025347-5348 (US 20410).
405. On March 24, 1977, R.A. Garrett of Imperial Tobacco wrote to Alexander Holtzman, Associate General Counsel for Philip Morris, about "Operation Berkshire," an upcoming meeting between the executives of certain tobacco companies. Participants included representatives from Defendants BATCo, Philip Morris, and RJR, as well as Reemstma, Rothmans International, and Imperial Tobacco. The purpose of the meeting was to form a group to develop a common international position on smoking and health issues. The group formed was called the International Committee on Smoking Issues ("ICOSI"). The resulting position paper was reviewed and edited by the law firm of Jacob Medinger, which represented RJR, B W, and CTR. 2025025288-5289 (US 20408); 2025025313-5318 (US 23741); 2025025341-5343 (US 20409); 2025025347-5348 (US 20410); 2025025347-5348 (US 75149); 2025025369-5369 (US 20411); 500269225-9228 (US 20622); 2025024797-4803 (US 20406); 2501020298-0308 (US 21903); 2501024103-4107 (US 21909); 2501024103-4107 (US 75181); 2501024571-4575 (US 21904); 502948580-8591 (US 21908).
406. The charter of ICOSI, states that its purposes and objectives are:
the establishment of a forum for exchange of views and information on international smoking issues (to include tobacco and health) by the coordination of data and information in economic, scientific, and technical areas. The general objectives are to broaden the knowledge of its members, of consumers, and of appropriate authorities. In large part accomplishment of these objectives will be sought by providing information to various national and other tobacco trade associations and by serving as a resource of expertise, data analysis and opinion on these subjects of interest to the industry and its public. The dissemination of the generality of this information will be made in the form of bulletins, reports, articles, surveys, pamphlets, and other analogous means.
2025048998-9014 at 8999 (US 20412); see also 503143820-4106 at 3909 (US 75974).
407. ICOSI's inaugural meeting, held in June 1977, at Shockerwick House in Britain served as the beginning of Operation Berkshire. This meeting, which was called by BAT CEO Tony Garrett, was attended by representatives of the major United States tobacco manufacturing companies. The meeting participants jointly agreed to "hold the line on admissions concerning what they would admit to their individual governments concerning smoking and health, among other things." Harris TT, 10/14/04, 2576:10-24, 2577:11-18; see also 2025025295-5300 (US 75146). According to notes in BATCo's files from a March 1978 meeting in Australia, the objective of ICOSI was "defensive research aimed at throwing up a smoke screen and to throw doubts on smoking research findings which show smoke causes deceases [sic]." 321588692-8692 (US 28544).
408. Mary Covington, Secretary General of INFOTAB, told attendees at the November 1981 Tobacco Institute College of Tobacco Knowledge in Washington, D.C. that the organization (first named ICOSI and later renamed INFOTAB) was founded to perform internationally the functions that the Tobacco Institute performed for the domestic industry in the United States: "From the outset, the members recognized that the social acceptability of smoking, including the public smoking issue was a subject on which attention should be focused [sic]." 2501029891-9901 at 9896 (US 20557); see also TI04962210-2210 (US 67250); Blackie TT, 10/26/04, 3846:18-22.
409. ICOSI's key officers included the chairmen and other principals of the member companies who attended the Operation Berkshire meeting: Patrick Sheehy, BATCo Chairman; Kit Stuart Lockhart, BATCo Deputy Chairman; William Hobbs, RJR Chairman; William Murray, President of Philip Morris Europe; Alexander Holtzman, Associate General Counsel for Philip Morris; and Andrew Whist, Director Corporate Affairs of Philip Morris (Australia) Ltd. 2025025341-5343 (US 20409); 2025025369-5369 (US 20411).
410. There were two governing groups of ICOSI. The Board of Governors was responsible for establishing policy, included one principal from each member company, and met at least annually. The Executive Committee was responsible for implementing the policies of ICOSI in those areas where decision-making powers had been delegated to the Committee by the Board of Governors. 2501020298-0308 (US 21903).
411. Representatives of the participating Defendants attended numerous meetings of several different ICOSI working groups and task forces, including the Social Acceptability Working Group, which dealt with ETS issues, the Medical and Behavioral Research Group, the EEC Task Force, the Product Liability Task Force, and the Swiss Referendum Task Force. 2501020298-0308 (US 21903); 321588692-8692 (US 28544); 2025025295-5300 at 5295 (US 75146).
412. ICOSI was registered as a non-profit association in Geneva, Switzerland, on December 1, 1978. The seven founding members of ICOSI were Defendants BATCo, Philip Morris, and RJR, as well as Gallahers, Imperial Tobacco, Reemstma, and Rothmans International. TIMN257288-7303 (US 21343); 321588692-8692 (US 28544); 1003717317-7330 at 7318 (US 86518); 301079919-9998 (US 87411*).
413. ICOSI representatives met six times between June 1977 and February 1979, to agree upon "the fundamentals of ICOSI's policy, form, organization, financing and work-programmes." 1003717317-7330 at 7319 (US 86518).
414. ICOSI member companies agreed to act together to respond to smoking and health risk challenges worldwide by promoting the "open question" controversy and the myth of independent research. On October 14, 1977, Dennis Durden, Vice President of RJR and then — Chairman of ICOSI's Working Party on the Social Acceptability of Smoking, forwarded a report to the members of ICOSI regarding the research and analysis activities that would be conducted by the working party. Members of the working party listed in the summary included representatives of Defendants RJR (Durden and James Hind, RJR Vice President of Planning), BATCo (Richard Haddon, Public Relations Manager), and Philip Morris (John T. Landry, Senior Vice President). 501472756-2794 at 2758, 2759, 2762 (US 66342).
415. On April 21, 1978, P. Isenring distributed a letter to Alexander Holtzman, Philip Morris Vice President and General Counsel, and others about the ICOSI EEC Task Force on Consumerism. Isenring urged cooperation and coordination between Philip Morris and RJR concerning the involvement of the law firms of Jacob Medinger and Shook, Hardy Bacon, both of which represented several Defendants. Specifically, Isenring discussed the fact that the ICOSI EEC Task Force on Consumerism had to prepare an industry response to the EEC Consumer Consultative Committee's anti-smoking paper "Tobacco and the Health of the Consumer" and suggested that ICOSI members and their respective law firms work together on a common approach to the response, given their exposure to the situation in Europe over the years. 2501025098-5099 (US 86515); 2501025100-5100 (US 86516); 2501025108-5108 (US 86517).
416. In advance of the June 1979 Fourth World Conference on Smoking and Health, ICOSI formed a Task Force to "monitor and combat on the spot the strong propaganda expected to be generated at this Conference" which is "sponsored by the World Health Organisation and the Swedish Health Authorities." In furtherance of this effort, the ICOSI Task Force met in Kansas City, Missouri on November 20-21, 1978, scheduled two task force meetings for early 1979, and another meeting just prior to the conference. Attendees of the Kansas City meeting included: Gwynn Hargrove of BATCo; Murray Senkus of RJR; William Kloepfer of Tobacco Institute; Leonard Zahn, public relations counsel for CTR; Tim Finnegan of CTR's lawyers Jacob Medinger; Hugh Grice of TAC; and Donald Hoel of Shook, Hardy Bacon. ICOSI engaged a Stockholm-based public relations agency to "monitor the Conference organizers' activities and to assist with press room activities at the Conference." Additionally, the Task Force was charged with preparing a post-conference report covering several matters, including "contradictions," "Conference recommendations to governments," an evaluation of the possible impact of the Conference, and "industry positions as they relate to the Conference." 2501015475-5480 at 5475-5476 (US 27921); 2501015328-5331 at 5328, 5329, 5331 (US 86519); 1003717317-7330 at 7328 (US 86518); Zahn PD, Richardson, 12/16/98, 309:12-17, 505:6-505:17, 506:6-14, 512:8-10, 517:2-518:10, 525:12-526:3, 537:1-538:18, 581:10-582:5; see also 680241699-1701 (US 30846).
417. In March 1980, the Executive Committee of ICOSI was disbanded. Instead, the Board of Governors consisting of two named representatives of each member company were to meet at least twice a year. Each member company was to have one vote at the meetings of the Board of Governors. Chairmanship was held in rotation by each member company. William D. Hobbs, Chairman of RJR, was Chairman of the Board of Governors between 1979 and March 31, 1980. 2501020298-0308 (US 21903).
6. INFOTAB — International Tobacco Information Center
418. ICOSI was renamed the International Tobacco Information Center/Centre International d'Information Du Tabac ("INFOTAB") and registered in Geneva, Switzerland, on December 8, 1980. 504934906-4953 (US 20737); Ward TT, 11/3/04, 4950:10-12. INFOTAB's charter, filed with the Swiss Government on November 2, 1982, was substantially the same as ICOSI's charter. 2025048998-9014 at 8999 (US 20412).
419. The six founding members of INFOTAB were Defendants BATCo, Philip Morris, and RJR, as well as Imperial Tobacco, Reemtsma, and Rothmans International. 504934906-4953 (US 20737); Tully PD,United States v. Philip Morris, 6/13/02, 33:7-14.
420. Defendant BATCo belonged to INFOTAB from 1981 or 1982 to approximately May 1990. Proctor PD, United States v. Philip Morris, 6/12/02, 16:8-18.
421. INFOTAB had three categories of membership: Founding Members, Associate Members, and Allied Members. Defendants Liggett and Lorillard were Associate Members, while Defendant Tobacco Institute was an Allied Member, as was Britain's TAC. 504934906-4953 (US 20737). Lorillard later withdrew from participation in INFOTAB because if felt that its contribution and participation in the Tobacco Institute provided adequate support for INFOTAB. Stevens WD, 4:3-13; 85174260-4260 (US 56011).
422. In the mid-1980s, Hugh Cullman of Philip Morris, R.L.O. Ely of BATCo, Andrew Whist of Philip Morris, and Richard J. Marcotullio of RJR were on the INFOTAB Board of Governors, which was later re-named simply "the Board of Directors." Cullman was the Chairman of the Board of Directors. 504934906-4953 at 4948 (US 20737); 2025013308-3308 (US 21585).
423. Tobacco Institute representatives, Peter Sparber and Bill Kloepfer (Senior Vice President, Public Relations), participated in an October 7-10, 1985 INFOTAB workshop in Copenhagen. Thereafter, INFOTAB's Secretary General wrote to Tobacco Institute President Samuel Chilcote to thank him for the Tobacco Institute's participation. According to the conference program, the workshop included discussions about "the Social Acceptance of Smoking," "The Health Controversy — Some Aspects Old and New," and "Ambient Tobacco Smoke, Defense — Medical, Defense — Political, and Relation with Indoor Pollution." According to the conference program, Hugh Cullman (then Vice Chairman, Philip Morris Companies and 1985/86 INFOTAB Chairman), John Tollison (then Institute Director of the Tobacco Institute of Australia Ltd.), and Hugh Grice (then Executive Director of the TAC) were also among the speakers, discussion group leaders and moderators scheduled to attend the workshop. TI12263348-3361 (US 62369*).
424. A November 30, 1989 INFOTAB document listed INFOTAB's "most important" roles, including: "'Think tank' for industry cooperation worldwide, in association with member companies," "Preparation of positions agreed by the industry," "Preparation of published materials and kit sets for use by NMA's and lead companies," and "Promulgation of strategies agreed by the industry." 300528729-8731 (US 46572).
425. INFOTAB prepared various materials on smoking and health issues including research-related materials, public relations campaign materials, and advocacy papers. For example, in 1986, INFOTAB produced an Issues Binder which provided
members with reference materials and quotations in response to the major allegations in the smoking and health area. The binder [was] organized around nine issues — "addiction," advertising and sponsorship, developing countries, the public smoking issue, legislation, smoking and health, social costs, taxation and warning labels.
504934906-4953 (US 20737).
426. J. Kendrick Wells of B W sent a memorandum to Ernest Pepples of B W dated October 27, 1981, concerning his recent discussion with L.C.F. Blackman, Director of the Group Research and Development Center of BATCo in Southampton, England, about Blackman's slide presentation titled "Basic Approach to Government and Medical Authorities." Wells voiced his concern with Blackman that the initial document "admit[ted], despite a disclaimer, that cigarettes are harmful to health in proportion to delivery." Wells further noted that the document "runs against important argument the U.S. industry is making in response to the FTC Staff Report and may need to make in response to charges that cigarettes are addictive." Blackman agreed to change the document and send it to the other INFOTAB members. 680585063-5064 (US 21007); 680585041-5042 (US 21006).
427. BATCo relied on position papers developed for the industry by INFOTAB. An internal BATCo memorandum, distributed "[t]o all No. 1's and Public Relations Managers of Operating Companies, transmitted an updated INFOTAB paper on "Advertising Argumentation," which provided arguments against advertising restrictions. The transmittal memo urged its recipients to "ensure that no mention is made of its source." 100439233-9233 (US 34655).
428. BATCo and other Defendants used INFOTAB to monitor research that suggested smoking caused cancer. 2021594539-4540 (US 36773).
429. A June 28, 1988 memorandum addressed to Todd Sollis, Assistant General Counsel of Philip Morris, from Donald Hoel, attorney with Shook, Hardy Bacon, described the central role played by Shook, Hardy Bacon with respect to INFOTAB. Hoel stated:
SHB, as counsel to PM and other international manufacturers, was instrumental in the founding of INFOTAB to help strengthen and coordinate the activities of the various national manufacturers associations. The firm remains active in the operation of INFOTAB. It monitors the meetings and clears the draft minutes of the INFOTAB Board of Directors and the Global Issues Working Party, as well as INFOTAB workshops. All materials prepared by INFOTAB on smoking and health issues, including briefing documents sent to national manufacturers associations and presentations by the INFOTAB staff, are cleared by SHB in order to protect the member association and member companies. SHB also approves all public relations campaigns, tactics and strategies which address smoking and health issues.
2015007199-7207 at 7204-7205 (US 20311).
430. A 1989 INFOTAB document outlined how to attack the WHO [World Health Organization]. The tactics it suggested included the following:
Criticize budget management, Address health priorities, Expose resource blackmail, Highlight regional failures, Attack "behaviourism," Counter on public issues, Discredit activists' credentials, Engage in statistical warfare, Invest in press relations, Show impact of "cuckoo" organisations.
The document also suggested the industry should attack IOCU [the International Organization of Consumer Unions] with the following program goals: "Relieve NGO pressure on WHO, Expose activists' 'credentials,' Counter 'behaviourist' regulation, correct anti-business slant." 2021595753-5910 at 5769, 5897, 5903 (US 85541).
431. In 1990, INFOTAB also issued an INFOTAB publication titled "Children Smoking — The Balanced View" that addressed various World Health Organization claims. It stated that tobacco is not addictive, and that there were inconsistent findings as to whether smoking causes low birth weight, birth defects, and delayed mental and physical development in infancy. 2070052572-2578 (US 87151); 2501342105-2110 (US 20565).
432. On January 19, 1990, Ron Loader, INFOTAB Director of Information Services, confirmed the first meeting of a worldwide industry working group at the offices of the Tobacco Institute in Washington, D.C. for the purpose of planning a Global Argumentation Project. The Global Argumentation Project was an effort to develop a standardized and comprehensive collection of argumentation papers on smoking and health issues, including ETS and youth marketing, which could be used by local management and National Manufacturing Associations ("NMAs") for lobbying, public information campaigns, or as basic documents for responding to public health advocates. Representatives from INFOTAB, the Tobacco Institute, Shook, Hardy Bacon, and several European and United States cigarette manufacturers attended the meeting, including Kay Comer of BATCo, Cynthia von Maerestetten of Philip Morris, Jim Goold of RJR; Donald Hoel and Jim Newsome of Shook, Hardy Bacon, and Charles Powers and Fred Panzer of the Tobacco Institute. It had been decided that for several reasons "it would be sensible to hold this first meeting in Washington" because "we need to involve the US TI at an early stage in order to take advantage of their detailed information/argumentation/lobbying materials developed over years in practical situations and needing personal discussion"; "most members of the Working Group are already in, or need to be in, the States (i.e. 8 out of 11)"; and "it provides the opportunity for INFOTAB coordinators to review other information sources (e.g., RJR) at first hand." TIMN362946-2949 (US 62874); TIMN362950-2952 (US 62872); TIMN362918-2922 (US 62919).
433. INFOTAB also collaborated with the IEMC. 507782317-2318 (US 20788).
7. TDC — Tobacco Documentation Centre
434. On December 4, 1991, the Tobacco Documentation Centre ("TDC"), was established as a successor entity to INFOTAB. BATCo joined the TDC at its inception. Its charter stated:
The Association has as its purpose the establishment of a forum for exchange of views and information on international tobacco issues by the coordination of data and information in economic, social, scientific and technical areas. The general objectives are to broaden the knowledge of its members. In large part accomplishment of these objectives will be sought by providing information to various national and other tobacco trade associations and by serving as a resource of expertise and data analysis on these subjects of interest to the industry.
301159092-9101 (JD 031017); 301159136-9151 (JD 031018); 700495549-5561 at 5550 (JD 031478); Proctor PD, United States, 6/12/02, 16:8-18, 113:7-11; Tully PD; United States, 6/13/02, 38:9-24.
435. The Founding Members of the TDC and subscription levels for each were as follows: Philip Morris International, Inc., 20%; RJR Tobacco International, Inc., 20%; BATCo, 20%; Gallahers, 10%; Reemtsma, 10%; and Rothmans International, 20%. Subscription levels of membership categories were based on annual production. On the unanimous proposal from Charter members, the following persons were unanimously elected to the Board of Directors for 1992: D.J. Bacon of BATCo, L.E. Birks of Gallahers, Richard J. Marcotullio of RJR International, F.J. Moreno of Philip Morris, C.J. Walther of Reemtsma, and A.A. Woods of Rothmans International. 301159092-9101 (JD 031017); 301159136-9151 (JD 031018).
436. The TDC was formed
to act as a central information resource for the tobacco industry worldwide. [Predecessor] INFOTAB had an extensive information collection and database, which was considered valuable and worth maintaining.
502601564-1567 at 1565 (US 29570).
437. The IEMC and CECCM scheduled meetings from time to time at TDC's offices. 700494467-4471 (US 89139); 2024210630-0631 (US 22868); 2028363540-3549 (US 86604); 2078742951-2951 (US 27724); 2078742947-2948 (US 27721); 2078742962-2963 (US 45192); 900006204-6204 (US 88482); 2051809368-9369 (US 86603).
438. On April 28, 1992, the International ETS Management Committee ("IEMC"), which was comprised of representatives from Defendants BATCo, Philip Morris, and RJR, prepared comments for distribution by the TDC regarding the draft EPA Risk Assessment on the health hazards of ETS. All national manufacturer associations ("NMA") were to use these comments in responding to inquiries regarding the draft Risk Assessment. The document was also provided to TDC member companies. 515622547-2547 (US 20865).
439. TDC distributed the IEMC ETS position papers, dated May 6, 1992, to the NMAs and lead companies, stating that the documents had been cleared for use by Defendants BATCo, Philip Morris, and RJR. TI13040345-0424 (US 86522).
440. On June 19, 1992, Matt Winokur, Director of Corporate Affairs at Philip Morris International, informed Geoffrey Bible, President of Philip Morris, and other Philip Morris employees, that the EPA talking points prepared by Covington Burling were
also being used by our international competitors and by National Manufacturers Association via the TDC. This coordinated approach to communications is highly desirable. It enables the entire global industry to espouse a common position immediately, an essential element in quickly responding to local government and media.
2021173016-3016 (US 20342).
8. CORESTA — Center for Cooperation in Scientific Research Relative to Tobacco/Centre de Coopération pour les Recherches Scientifiques Relatives au Tabac
441. The Center for Cooperation in Scientific Research Relative to Tobacco/Centre de Coopération pour les Recherches Scientifiques Relatives au Tabac ("CORESTA") was created following the resolutions approved by the First International Scientific Tobacco Congress held in Paris, France, on September 10, 1955. It was created "[i]n order to operate a permanent Secretariat for international co-operation in scientific studies relative to tobacco." Its registered offices are located in Paris, and every world-wide major tobacco company and tobacco industry organization is a member. Meetings have been held every two years and, as of 1992, CORESTA had approximately 190 members, including Defendants BATCo, Philip Morris, Lorillard, B W, Liggett, and RJR. 401349241-9242 (US 47550); 401349243-9248 at 9243 (US 21788); 401349330-9333 (US 47575); Stevens WD, 4:3-5.
442. A March 31, 1992 BATCo document described CORESTA's value to the tobacco industry:
It is perceived as being objective, technical and independent. It is this perception which makes CORESTA unique and very valuable. Unlike other organizations, e.g., CECCM[,] it is not regarded as a lobbying organisation of the tobacco industry.
401349243-9248 at 9243 (US 21788).
443. In June 2001, representatives from Defendants Lorillard, Philip Morris, and RJR, along with other delegates from the industry, convened at CORESTA's ETS Sub Group meeting, where they discussed trends in ETS research. In November 2001, the CORESTA Sidestream Task Force, which included representatives from Defendants BATCo, RJR, and Philip Morris, among others, met to review research conducted on sidestream tar and nicotine. 525302822-2823 (US 86526); 525302728-2729 (US 86527); 525776902-6936 (US 86528); 325260347-0362 at 0348 (US 29146); 524596882-6890 at 6883 (US 66571).
9. Tobacco Institute Interaction with Overseas and International Groups
444. As described above, the Tobacco Institute worked closely and consistently over a lengthy period of time with overseas and international tobacco organizations to present a unified front on issues of common concern; to influence public opinion; to convince government officials to adopt the public positions of the United States tobacco industry; to maintain the Defendants' open question position on the relationship between smoking and adverse health effects; to avoid adverse liability verdicts in lawsuits brought around the world; and as an overarching goal to preserve and enhance Defendants' profits.
445. In a document dated October 1, 1973, and titled "International Activities of the Tobacco Institute, Inc.," J.C.B. Ehringhaus, Jr., Tobacco Institute General Counsel, advocated that the Tobacco Institute have an increased role internationally. Ehringhaus noted that
any success of the anti-smoking group in another country "diminishes" us. I think we have to do something about it, to be aware and to participate in order to protect the interests of the American companies.
He further suggested:
We would keep aware of what's going on around the world and be able to advise our industry people in one country of these happenings so that they may be guided in dealing with their own local situations.
2010030234-0235 (US 88447).
446. The Tobacco Institute's role in international matters was then discussed at the October 4, 1973 meeting of the Tobacco Institute Executive Committee, and it was agreed that "the Committee of Counsel should continue consideration of this area." TIMN0013425-3428 at 3427 (US 88448).
447. One way in which the Tobacco Institute coordinated worldwide industry positions was by publishing brochures, pamphlets, "backgrounders," industry position papers, and other materials on the Enterprise's stance on controversial smoking and health issues and making them available for overseas distribution, often through INFOTAB. USX6400001-0527 at 0506-0507 (US 89561).
448. The Tobacco Institute developed a Tobacco Institute "backgrounder" titled "Tobacco in the Developing Nations" and announced its availability in a Tobacco Institute newsletter on January 14, 1980. Copies were to be forwarded to international public relations personnel of member companies, overseas NMAs and other trade associations, and international organizations such as INFOTAB and ICOSI. TIMN0241954-1971 (US 21545); TI16740349-0366 (US 86538).
449. On October 15, 1981, Donald Hoel of Shook, Hardy Bacon, sent a letter to Horace Kornegay, President of the Tobacco Institute, transmitting a draft of a "Public Smoking Paper" for use by INFOTAB. TIMN0144678-4678 (US 23015).
450. In anticipation of the 1983 Surgeon General's Report on heart disease, the Tobacco Institute issued a report "Cigarette smoking and heart disease." The report was distributed to Tobacco Institute member companies who were requested not to distribute it widely, but to use it only for internal purposes until the Surgeon General's report on heart disease was released when additional copies would be made available. INFOTAB distributed the report as well, advising its members that the Tobacco Institute would acquaint news reporters with its views about smoking and heart disease before the release of the 1983 Surgeon General's report. 2501023645-3645 (US 20556).
451. In anticipation of the 1985 Surgeon General's Report on smoking and the workplace, the Tobacco Institute staff gathered prior publications on similar subjects by the prospective authors of the report chapters in order to forecast the conclusions of the report with some degree of accuracy and develop "shadow" papers by scientists who would question or reject such conclusions. TIMN0061572-1572 (US 88450). Thereafter, INFOTAB informed NMAs throughout the world, including Britain's TMA, of which BATCo was a member, that the Tobacco Institute had assembled material for use in framing answers to possible specific questions from the media regarding the 1985 Surgeon General's Report. INFOTAB forwarded a copy of this material for use as a basic reference by Defendants and spokespersons from the NMAs. 2501444186-4187 (US 27948).
452. The Tobacco Institute's William Kloepfer was given six draft briefing papers in June 1987 that were to be presented at the Sixth World Conference on Smoking and Health. The papers discussed ETS and Indoor Air Quality; the Science of ETS; ETS Legislation; Tobacco and Developing Countries; Smoking and Young People; and Smoking and Women. Kloepfer was asked to, and did, rewrite all papers except the one on Smoking and Women. TIMN0269920-9944 (US 86540); TI12261173-1173 (US 62338).
453. In a 1990 memorandum listing "Allies to Be Notified of Industry Youth Initiatives," the Tobacco Institute directed that, prior to public announcement of any new industry initiatives in the area of youth smoking, the Tobacco Institute staff would provide organizations within the tobacco family, groups, and allies of the new program with advance copies of press and program materials and a cover letter to be signed by the Tobacco Institute President or other appropriate staff. Among the international organizations to be kept abreast of the Tobacco Institute's activities on behalf of the industry were INFOTAB and TMA. TIMS00026152-6153 (US 88451).
454. A letter dated March 6, 1992, from William Kloepfer, Tobacco Institute Senior Vice President, to Ron Tully of INFOTAB, and others, provided information about the Surgeon General's Report titled "Smoking and Health in the Americas" which was to be released on March 12, 1992. The letter explained that the Tobacco Institute would comment on the Surgeon General's Report, if asked, to United States media and Latin America media; that the Pan American Health Organization would be issuing a country-by-country status report on tobacco prevention and control measures; and that Kloepfer would bring materials prepared by Don Hoel of Shook, Hardy Bacon and others to the briefing sessions. 2500121043-1043 (US 20552).
455. The Tobacco Institute furnished advice, assistance, and financial support to international industry-related groups and organizations as these groups worked on projects, publications, videos, conferences, briefing papers, and lobbying materials. USX6400001-0527 at 0506-0507 (US 89561).
456. In a January 17, 1983 form letter to its members, TAC informed each of its member companies, one of which was Defendant BATCo, that the Tobacco Institute had provided TAC with a copy of a Tobacco Institute videotape compilation showing their spokespersons' team in action:
It shows extracts of the four members of the team being interviewed on television and speaking to live audiences. Two points are of particular interest. The first, the way in which they publicly face and handle health issues. The second that all the team are first and foremost media trained and therefore utterly familiar with, and relaxed in, dealing with hostile interviews and audiences: their knowledge of tobacco matters, while vitally important, is a secondary consideration in the selection and training process.
2024919702-9702 (US 26821).
457. The Tobacco Institute provided facilities at its offices for an INFOTAB Workshop for NMAs held on September 19-22, 1983. William Kloepfer, Tobacco Institute, Vice President, and Tony St. Aubyn, TAC Assistant Director, were among the presenters. TI13161263-1266 (US 88499); 100294426-4429 (US 88500); 2501021530-1532 (US 27924); 2501021486-1489 (US 25366); USX6400001-0527 at 0506-0507 (US 89561).
458. During 1984, the Tobacco Institute paid $70,000 for one half the cost of a monograph commissioned by INFOTAB, edited by Robert Tollison, Professor of Economics at Virginia's George Mason University, titled "Smoking in Society." TIMN371669-1669 (US 65655); USX6400001-0527 at 0506-0507 (US 89561).
459. In November 1990, Samuel Chilcote, Tobacco Institute President, sent Martin Oldman of INFOTAB a list of "messages and sub-messages [that] could be helpful as a starting point for any global and/or NMA ETS campaign." TI12200663-0663 (US 62313).
460. The Tobacco Institute provided guidance, advice, strategies, and tactics to overseas organizations and groups for setting up tobacco alliances outside the United States, as the following examples demonstrate.
461. On November 16, 1981, Mary Covington, Secretary General of INFOTAB, speaking on an "International Perspective on Smoking Issues and Related Activities of the Tobacco Industry," noted that INFOTAB had received outstanding help from the Tobacco Institute, "a valuable source of information and ideas." 2501029891-9901 (US 20557).
462. In a March 5, 1986 letter to Bryan Simpson, INFOTAB Secretary General, Arthur Stevens, Lorillard Senior Vice President and General Counsel, stated that:
Lorillard will not be renewing its INFOTAB membership subscription for 1986. Please understand that our action in no way reflects any disagreement or dissatisfaction with either the mission or the achievements of INFOTAB, all of which are credible and significant. . . . However, as active and significant contributors to the program of the U.S. Tobacco Institute, whose assistance is generously and frequently afforded to INFOTAB, we believe we are already supporting INFOTAB's efforts to a very significant degree.
91820409-0410 (US 57120).
463. Simpson wrote back to Stevens on March 21, 1986, confirming Lorillard's withdrawal as a member of INFOTAB and acknowledging that "we are aware of your major contribution to TI, and the benefits that we receive indirectly." 85174260-4260 (US 56011).
464. According to an October 2, 1981 BATCo document, the Tobacco Institute commented on the importance of INFOTAB: "INFOTAB has without any doubt at all made an immense change in the general atmosphere in the industry and this has led to an enormous increase in cooperation." This document further stated that the Institute had been
looking for 15 years for an international umbrella to enable them to deal with other NMAs and to improve the strength of the industry as a whole; — the back-wash from events and attacks affecting the industry in smaller countries comes back powerfully to the USA; . . . INFOTAB helps the industry to unite in trying to combat the attacks; — for years it had been hoped that there would be some sort of organisation of international trade associations, which never happened.
321796064-6067 at 6067 (US 28685).
465. In remarks on September 20, 1983, at an INFOTAB workshop in Washington, D.C. on "How to Set Up a Tobacco Alliance," the Assistant Director of Britain's TAC, stated that the tobacco industry in the United Kingdom initially turned to the Tobacco Institute for guidance on setting up a tobacco alliance in early summer 1982.
[T]hanks to the unstinting help they gave us, we were able to draw much of our conceptual thinking from their experience with the Tobacco Action Network . . . T.I.'s experience, and especially their warnings of some of the problems and pitfalls we had to avoid, was invaluable.
2501021530-1532 at 1530 (US 27924); 2024919702-9702 (US 26821).
466. Tobacco Institute representatives served on international teams, committees, and boards, along with industry representatives from outside the United States, in which strategies were developed for a coordinated approach to scientific research studies and public relations campaigns. USX6400001-0527 at 0506-0507 (US 89561); TI12431630-1630 (US 62383); TI13111755-1755 (US 62412); TI13110904-0904 (US 62410); TI12200663-0663 (US 62313); TI12432168-2168 (US 62385); William Adams PD, United States v. Philip Morris, 6/18/02, 17:16-20.
467. The Tobacco Institute made countless presentations for INFOTAB and other international group workshops, seminars, symposia, and conferences outlining Defendants' strategies for attacking what Defendants deemed "anti-smoking" research and programs linking smoking and health and ETS and health. USX6400001-0527 at 0506-0507 (US 89561).
468. For example, on March 29, 1984, William Kloepfer, Tobacco Institute Vice President, participated in a meeting of the Passive Smoking Project Group, an INFOTAB committee, in Lausanne, Switzerland. TI12431630-1630 (US 62383); TI12432168-2168 (US 62385); USX6400001-0527 at 0506-0507 (US 89561).
469. On June 4, 1984, William Kloepfer attended the meeting of the INFOTAB ETS Committee in Brussels, Belgium. Scientists from Defendants Philip Morris and RJR also attended. TI13111755-1755 (US 62412); USX6400001-0527 at 0506-0507 (US 89561) (TI Response to Interrogatory No. 15).
470. On October 10, 1985, Tobacco Institute President Samuel Chilcote spoke at an INFOTAB International Workshop on the credibility gap between the tobacco industry and the public. TIMN371764-1795 (US 77095); TIMN350605-0605 (US 88498).
471. On October 14-16, 1986, William Kloepfer spoke on Smoking in the Workplace at an INFOTAB International Workshop in Brussels, calling ambient smoke a political issue rather than a health issue. R.L.O. Ely, head of BATCo Public Affairs, addressed World Health Organization ("WHO") Initiatives. Tom Osdene, Philip Morris Director of Research, Charles Green, RJR scientist, and Donald Hoel, lawyer at Shook, Hardy Bacon, took part in a panel discussion on ETS. 2021594646-4648 (US 26059); TIOK0029712-9712 (US 86546); TIOK0029713-9723 (US 86547); TIOK0029724-9734 (US 86548); 86024168-4172 (US 21089); TI12820001-0004 (US 62398); TI12820005-0290 (US 62399).
472. On October 18, 1988, Walker Merryman, Tobacco Institute Vice President, spoke at an INFOTAB Workshop in Malaga, Spain, on anti-smoking activists. TI12261398-1399 (US 62348).
473. The Tobacco Institute arranged visits and briefing sessions for domestic and foreign industry representatives to discuss current and emerging issues that the Tobacco Institute believed threatened the industry. For example, after attending a luncheon in Washington, D.C., hosted by the Tobacco Institute's Horace Kornegay, members of Japan Tobacco, Inc. ("JTI") were invited to attend a Tobacco Institute ETS Advisory Group meeting in Washington, D.C. In his July 15, 1986 letter to JTI's S. Takeda, Donald Hoel, Chairman of the ETS Advisory Group, wrote:
One of the purposes and benefits from the proposed joint meeting would be to exchange detailed information as to current research projects. . . . The second day would include identification of research needs and perceived problems.
TI00610156-0156 (US 86549); TI00610153-0154 (US 62064).
474. In 1990, Charles H. Powers, Tobacco Institute Senior Vice President, arranged a visit and briefing session between the Tobacco Institute and the Canadian Tobacco Manufacturers' Council on current emerging issues in the two countries, particularly those issues which might produce spill-over effects from the United States to Canada and/or vice versa. TI12910068-0069 (US 86550).
475. Tobacco industry representatives from around the world attended the Tobacco Institute's College of Tobacco Knowledge, the seminars held to provide industry managers and other employees the most up to date information and industry positions on smoking and health related issues (discussed in detail at Section III(D)(5), supra). At the October 1982 session, for example, seventeen of the forty-nine students were from foreign countries, e.g., Paraguay, Canada, United Kingdom, Australia, Brazil, Switzerland, Holland, Venezuela, and Guatemala. 04163285-3285 (US 74872); 04235250-5251 (US 75000); TI04962210-2211 (US 67250); TI04962207-2207 (US 88501).
476. Employees from INFOTAB were also invited to, and did attend, sessions of the Tobacco Institute College of Tobacco Knowledge. TIFL0067876-7877 (US 88633); TIFL0071174-1174 (US 86142); TIFL0071332-1332 (US 88634); TI11961377-1377 (US 86186); TI16740660-0663 (US 72403); USX6400001-0527 at 0506-0507 (US 89561). For example, five members of INFOTAB attended the November 1981 session of the College. 501029891-9901 (US 20557).
J. Dissolution of CTR and the Tobacco Institute
477. In November 1998, most of the State Attorneys General entered into a settlement agreement, referred to as the Master Settlement Agreement ("MSA"), with Philip Morris, R.J. Reynolds, B W, Lorillard, Liggett, and Commonwealth Brands, Inc., to resolve all pending Medicaid recoupment litigation. The State Attorneys General for Florida, Mississippi, Minnesota, and Texas had already entered into settlements with tobacco defendants prior to November 1998. The MSA required that CTR and the Tobacco Institute cease all operations and dissolve. In addition, the tobacco products manufacturers signing the MSA were prohibited from reconstituting CTR or its function in any form. JDX4100001-0328 (JD 045158).
1. CTR
478. On May 8, 1998, in connection with State of Minnesota v. Philip Morris, B W, Lorillard, Philip Morris, and R.J. Reynolds (the four Class A members of CTR) entered into a Settlement Agreement and Stipulation for Entry of a Consent Judgment with the State of Minnesota ("Minnesota Settlement Agreement"), in which, among other things, the companies agreed to dissolve CTR and enter into a consent judgment ("Minnesota Consent Judgment"). Section VI of the Minnesota Consent Judgment, entered on May 19, 1998, provided that, within ninety days of May 8, 1998, CTR would cease all operations except as necessary to comply with existing grants or contracts and to continue its defense of other lawsuits and that CTR would be disbanded and dissolved within a reasonable time period thereafter. 2060571342-1361 at 1342 (US 86853).
479. The members of CTR held a special meeting on October 19, 1998, at CTR's offices in New York City at which the Plan of Corporate Dissolution and Distribution of Assets of The Council for Tobacco Research — U.S.A., Inc. was approved by a unanimous vote of the members present. The Class A members present were B W, represented by Senior Vice President Ernest Pepples; Philip Morris, represented by Senior Vice President of Operations John Nelson; Lorillard, represented by Chairman and CEO Alexander Spears; and R.J. Reynolds, represented by President and CEO Andrew Schindler. The Class B members present were Bright Belt Warehouse Association, Tobacco Association, Inc., Burley Auction Warehouse Association, Burley Tobacco Growers Cooperative Association, Inc., and United States Tobacco. 2060571342-1361 at 1359-1361 (US 86853). The Plan of Corporate Dissolution allowed CTR to continue to defend itself and to protect its interest in litigation, and to assist in the defense of Defendants and CTR's other members in litigation, pursuant to joint defense agreements or arrangements. 2060571342-1361 at 1344, 1348-1349 (US 86853).
480. CTR and the Attorney General of New York agreed to the terms of the dissolution, and the New York Supreme Court entered an Order Approving CTR's Plan of Corporate Dissolution and Certificate of Dissolution on or about October 21, 1998. 70005153-5362 at 5153-5186 (JE 021048).
481. In March 1998, James Glenn, CTR President, sent a memorandum to the members of the Scientific Advisory Board requesting that they indicate their willingness to serve as a consultant or as a participant in any future activities of CTR or any successor organization. Glenn received mixed responses to his request. Some members, such as Carlo Croce, replied affirmatively expressing their willingness to continue with CTR's activities. Others such as Judith Swain, declined any further relationship with CTR, stating,
because of the information that has come out of the tobacco litigation process, I do not feel that I can continue as a member of the Council of Tobacco Research . . . the information from previous years indicates that the Council may not have been totally independent of the tobacco industry.
TLT0270372-0372 (US 76330); TLT027 0370-0370 (US 76328).
2. Tobacco Institute
482. Pursuant to a plan of dissolution that was to be negotiated by the Attorney General of the State of New York and the Original Participating Manufacturers, B W, Lorillard, Philip Morris, and R.J. Reynolds, in accordance with Exhibit G of the MSA, the Tobacco Institute was to cease all operations and be dissolved in accordance with the laws of the State of New York and under the authority of the Attorney General of the State of New York, with the preservation of all applicable privileges held by any member company of the Tobacco Institute. (no bates) (JD 045158).
483. The Tobacco Institute's Plan of Corporate Dissolution and Distribution of Assets was approved on August 7, 2000, by its Class A members: Ernest Pepples, Senior Vice President of B W; Michael Szymanczyk, CEO of Philip Morris, Inc.; Alexander Spears, Chairman of Lorillard; and Charles Blixt, Executive Vice President and General Counsel of R.J. Reynolds. TI31113058-3165 (US 21261). The Plan of Corporate Dissolution allowed the Tobacco Institute to continue to defend itself and to protect its interest in litigation, and to assist in the defense of its members in litigation, pursuant to joint defense agreements or arrangements. Id. at 3060, 3065.
484. The Tobacco Institute's Dissolution Plan was adopted by the Tobacco Institute Board of Directors. The members of the Board of Directors at the time were Nicholas Brookes and Ernest Pepples for B W, Ronald Milstein and Alexander Spears for Lorillard, Tommy Payne and Andrew Schindler for R.J. Reynolds, Michael Szymanczyk for Philip Morris, Inc., and Howard Liebengood for Philip Morris Companies. TI31113205-3207 (JD 053521).
485. The Supreme Court of New York County entered an Order Approving the Tobacco Institute's Plan of Corporate Dissolution and Certificate of Dissolution on or about September 1, 2000. TI31113204-3214 at 3208-3213 (JD 080768).
IV. THE DEFENDANTS ARE ENGAGED IN AND THEIR ACTIVITIES AFFECT INTERSTATE AND FOREIGN COMMERCE
486. Defendants in this case at all relevant times have been and are engaged in interstate and foreign commerce and their activities have affected, and continue to affect, interstate and foreign commerce within the meaning of 18 U.S.C. § 1962(c) and (d). Regarding Defendant — members of this RICO enterprise, the Court finds the following facts.
A. Philip Morris Companies
487. Defendant Philip Morris Companies has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from July 1, 1985 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 7 (D.D.C. Dec. 11, 2002); United States v. Philip Morris, 316 F. Supp.2d 19, 26 (D.D.C. 2004).
B. Philip Morris
488. Defendant Philip Morris has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 1 (D.D.C. Dec. 11, 2002). C. R.J. Reynolds
489. Defendant RJR has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 2 (D.D.C. Dec. 11, 2002).
D. Liggett
490. Defendant Liggett has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1990 through January 29, 2003. Liggett's predecessors in interest engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) from 1953 until 1990. United States v. Philip Morris, No. 1:99-CV-2496, Order #308 at ¶ 1 (D.D.C. Jan. 31, 2003); United States v. Philip Morris, 316 F. Supp.2d 19, 26 (D.D.C. 2004).
E. Lorillard
491. Defendant Lorillard has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #208 at ¶ 5 (D.D.C. Dec. 11, 2002).
F. BATCo
492. Defendant BATCo has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 6 (D.D.C. Dec. 11, 2002).
G. Brown Williamson
493. Defendant B W has engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to December 10, 2002. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 3 (D.D.C. Dec. 11, 2002).
H. American
494. Defendant American, predecessor to Defendant B W, engaged in and conducted activities affecting interstate commerce within the meaning of 18 U.S.C. § 1962(c) and (d) during the period from 1953 to February 28, 1995. United States v. Philip Morris, No. 1:99-CV-2496, Order #280 at ¶ 4 (D.D.C. Dec. 11, 2002). I. Tobacco Institute
495. Defendant Tobacco Institute admits that it was a not-for-profit corporation and tobacco industry association formed in 1958 under the laws of the State of New York, and that, at one time, its principal place of business was located in Washington, D.C. United States v. Philip Morris, No. 1:99-CV-2496, Answers, Defenses and Jury Demand of The Tobacco Institute, Inc. at 16 (D.D.C. Oct. 30, 2000).
496. From at least 1959 through 1995, Defendants American, B W, Liggett, Lorillard, Philip Morris, and RJR were among the member organizations of the Tobacco Institute, albeit for varying periods of time, who, as a part of their membership obligation, contributed to the Tobacco Institute's funding. TIFL0020285-0311 at 0297-0305 (JD 080429).
497. From 1958 until 1999, Defendants Philip Morris, RJR, American, B W, Lorillard, and Liggett declared contributions of over $618.4 million to the Tobacco Institute, which were processed through the interstate banking system. (no bates) (US 89561 at 97-103); (no bates) (US 75925 at 54-56); (no bates) (US 89561 at 40-44); (no bates) (US 75555 at 71-73); (no bates) (US 89561 at 132-135).
498. For the period 1980 through 1994, the Tobacco Institute spent more than $169 million for public relations and advertising. TIFL0020285-0311 at 0298 (JD 080429).
499. The Tobacco Institute, its agents, or former employees have made numerous public statements or admissions of the interstate nature and scope of its business. For example, on January 12, 2005, Brennan Dawson, former Senior Vice President for Public Affairs, testified at trial in this case that she made public statements, on behalf of the Tobacco Institute, concerning smoking and health issues on television programs, including CNN's Newsmaker Sunday, CNN's Crossfire, Good Morning America, and CBS News Night Watch, and that she intended that millions of American television viewers believe such public statements. Dawson TT, 1/12/05, 9925:17-9930:16.
500. During trial, Brennan Dawson also testified that many of the Tobacco Institute's press releases and other public statements were disseminated to the public via newspapers and magazines. Id. at 9928:19-9929:10.
501. On February 25, 1994, the Tobacco Institute's Senior Vice President of Administration, William Adams, and its Senior Vice President for State Activities, Kurt L. Malmgren, mailed, out of state, individual letters to: Brown Williamson Senior Vice President Ernest Pepples (authored by Mr. Malgrem); Philip Morris President and CEO William Campbell (authored by Mr. Adams); and Lorillard Senior Vice President M. Alfred Peterson (authored by Mr. Adams), requesting their company's respective contribution of at least $100,000 to the Michigan Citizens for Fair Taxes to fight a 1994 ballot initiative, and requesting that each of the companies wire its contribution to the Tobacco Institute's Washington, D.C. bank account. TI16370185-0402 at 0366, 0368, 0369 (US 21258).
502. On August 31, 1994, William Adams, Senior Vice President of Administration of the Tobacco Institute, mailed, out of state, individual letters to: Philip Morris President William Campbell; Reynolds Executive Vice President David Anderson; Brown Williamson Senior Vice President Ernest Pepples; Lorillard Senior Vice President M. Alfred Peterson; and American Vice President John Hager, advising them each that the Tobacco Institute Management Committee had approved additional lobbying expenditures for a state initiative and requesting their respective company's payment. TI16370185-0402 at 0340-0346 (US 21258). J. TIRC/CTR
503. Defendant TIRC was formed in January 1954 by several entities, including Defendants Philip Morris, RJR, B W, American, and Lorillard. TIRC had its principal place of business in New York City, New York. In 1964, TIRC changed its name to The Council for Tobacco Research — U.S.A. In 1971, the name was changed to The Council for Tobacco Research — U.S.A., Inc., when CTR incorporated as a not-for-profit corporation organized under the laws of the State of New York. United States v. Philip Morris, No. 1:99-CV-2496, Answer of CTR at 4, 6 (D.D.C. Oct. 30, 2000).
504. From 1954 to 1999, Defendants Philip Morris, American, B W, Liggett, Lorillard, and RJR contributed a total of approximately $505.4 million to CTR, which payments were processed through the interstate banking system. From the period 1954 through 1999, member contributions to the CTR General Fund, processed through the interstate banking system, totaled over $470.2 million. DXA0630917-1033 at 1017-1023 (US 75927).
505. Through 1997, CTR funded 1,657 research grants-in-aid, research contracts, and scientific conferences, totaling approximately $317 million, in the United States and abroad. McAllister WD, 53:3-54:3; 70000302-0618 at 0308 (JD 090039).
506. From about 1966 to 1991, CTR also administered the funding of certain CTR Special Projects, which were separate and distinct from CTR's grant in aid program. CTR administered Special Project funding through a separate checking account, and received direction and funding from sponsor companies, including Defendants Philip Morris Companies, Philip Morris, American, B W, Liggett, Lorillard, and RJR and/or their attorneys. CTR also sent correspondence and funds to Special Project recipients and/or their affiliated institutions through the United States Mail. For the period 1966 through 1990, CTR members contributed over $18.2 million toward the funding of these Special Projects. United States v. Philip Morris, No. 1:99-CV-2496, Answer of CTR at 9 (D.D.C. Oct. 30, 2000); McAllister WD, 159:8-164:5; DXA0630917-1033 at 1024 (US 75927).
507. CTR provided funding to Special Projects recipients via checks processed through the interstate banking system and delivered via the United States Mail. McAllister PD, United States v. Philip Morris, 5/24/02, 98:3-99:2, 102:13-22, 103:7-19.
508. According to Harmon McAllister, CTR's 30(b)(6) witness on the subject of mailings, CTR mailed its Annual Reports through the United States mails. Id. at 65:11-66:21.
V. DEFENDANTS DEVISED AND EXECUTED A SCHEME TO DEFRAUD CONSUMERS AND POTENTIAL CONSUMERS OF CIGARETTES IN MOST, BUT NOT ALL, OF THE AREAS ALLEGED BY THE GOVERNMENT
A. Defendants Have Falsely Denied, Distorted and Minimized the Significant Adverse Health Consequences of Smoking for Decades
509. Cigarette smoking causes disease, suffering, and death. Despite internal recognition of this fact, Defendants have publicly denied, distorted, and minimized the hazards of smoking for decades. The scientific and medical community's knowledge of the relationship of smoking and disease evolved through the 1950s and achieved consensus in 1964. However, even after 1964, Defendants continued to deny both the existence of such consensus and the overwhelming evidence on which it was based.
1. Cigarette Smoking Causes Disease
510. Cigarette smoking and exposure to secondhand smoke (also known as environmental tobacco smoke or "ETS") kills nearly 440,000 Americans every year. The annual number of deaths due to cigarette smoking is substantially greater than the combined annual number of deaths due to illegal drug use, alcohol consumption, automobile accidents, fires, homicides, suicides, and AIDS. Approximately one out of every five deaths that occur in the United States is caused by cigarette smoking. TLT0960104-0112 at 0104 (US 87047) (Centers for Disease Control and Prevention, Smoking-Attributable Mortality and Years of Potential Life Lost — United States, 1994, MMWR, 46(20) (1997)); VXA1000001-0604 (US 77217) (Thun M., Myers D., Day-Lally C., Namboodiri M., Calle E., Flanders W.D., Adams S., Heath Jr. C., Age and the Exposure-Response Relationships Between Cigarette Smoking and Premature Death in Cancer Prevention Study II, Chapter 5, Smoking and Tobacco Control Monograph 8: Changes in Cigarette-Related Disease Risks and Their Implications for Prevention and Control, National Institutes for Health — National Cancer Institute, p. 383-476 (1997)); TLT0930001-0949 (US 88621) (2004 Surgeon General Report).
511. Cigarette smoke contains carbon monoxide, nitrogen oxides, cyanide, benzopyrenes, radioactive polonium, arsenic, aldehydes, nitrosamines, numerous toxins, and other human carcinogens. Samet WD, 22:15-23:10. Carcinogens and toxins are absorbed into the bloodstream when cigarette smoke is inhaled. Samet WD, 23:11-24:3.
512. Cigarette smoking causes lung cancer. VXA1601844-2232 at 1986 (US 64057) (1964 Surgeon General Report). Lung cancer kills 160,000 Americans each year, and 90% of all lung cancer cases are caused by cigarette smoking. The five-year survival rate for lung cancer is only 14%. Samet WD, 71:18-22, 80:1-3; Carmona WD, 1:18-21.
513. The risk of developing lung cancer increases with an increase in smoking. Individuals smoking ten to twenty cigarettes per day have a ten-fold increased risk and individuals smoking forty or more cigarettes per day — two packs and over — have more than a twenty-fold increased risk of developing lung cancer. This rate of risk is referred to as "relative risk." Samet WD, 64:17-67:19; (no bates) (US 17141).
514. Cigarette smoking, including exposure to secondhand smoke, causes cardiovascular disease, including myocardial infarction (commonly known as "heart attack"), coronary heart disease ("CHD") and atherosclerosis. CHD refers to diseases which affect the blood vessels of the heart. CHD can cause a deprivation of oxygen to the heart, and thus, cause heart attacks. Atherosclerosis refers to the development of plaque on the arteries, which contributes to the blocking of blood flow to the heart. Samet WD, 107:18-118:21; (no bates) (US 17165); (no bates) (US 17158); (no bates) (US 17134); (no bates) (US 17159); (no bates) (US 17160); (no bates) (US 17204).
515. Cigarette smoking causes chronic obstructive pulmonary disease ("COPD"). Samet WD, 81:4-90:21.
516. COPD, previously referred to as "emphysema" or "chronic bronchitis," was found to be causally related to smoking in 1964.Id. at 81:10-83:14; VXA1601844-2232 at 1986 (US 64057) (1964 Surgeon General Report).
517. Cigarette smoking causes bladder cancer. Samet WD, 90:22-91:4; 97:5-98:17; (no bates) (US 17103).
518. Cigarette smoking causes cerebrovascular disease. Samet WD, 118:21-120:18, 121:15-122:14.
519. Cigarette smoking causes esophageal cancer. Id. at 90:22-91:4, 94:5-95:13. Cigarette smoking causes kidney cancer.Id. at 90:22-91:4, 98:18-101:4.
520. Cigarette smoking causes laryngeal cancer. Id. at 91:5-92:21.
521. Cigarette smoking causes oral cancer. Id. at 92:22-94:4.
522. Cigarette smoking causes pancreatic cancer. Id. at 90:22-91:4, 95:14-97:4.
523. Cigarette smoking causes peptic ulcer disease. Id. at 125:10-127:3.
524. Cigarette smoking causes aortic aneurysm. Id. at 122:15-125:9.
525. Cigarette smoking causes cataracts. Id. at 127:4-128:8.
526. Cigarette smoking causes low bone density in post-menopausal women. Id. at 128:9-129:22.
527. Cigarette smoking causes reduced fertility. Id. at 130:12-131:23.
528. Cigarette smoking causes adverse reproductive outcomes, including pre-mature rupture of the membranes, placenta previa, placental abruption, pre-term delivery and shortened gestation, fetal growth restriction and low birth weight. Id. at 130:20-132:9.
529. Cigarette smoking causes acute myeloid leukemia. Id. at 101:5-102:23.
530. Cigarette smoking causes stomach cancer. Id. at 103:1-104:9.
531. Cigarette smoking causes uterine and cervical cancer. Id. at 104:10-105:15.
532. Cigarette smoking causes liver cancer. Id. at 105:16-106:9.
533. Cigarette smoking causes diminished health status. Id. at 132:15-135:20.
2. Scientific Research on Lung Cancer up to December 1953
a. Scientists Investigating the Rise in the Incidence of Lung Cancer Linked Smoking and Disease before 1953
534. Dr. Allan M. Brandt was accepted as an expert in the history of science and medicine without objection from Defendants. Brandt TT, 9/27/04, 642:19-643:3.
535. Dr. Brandt is the Amalie Moses Kass Professor of the History of Medicine at Harvard Medical School and Professor of the History of Science at Harvard University, where he is the chair of the Department of the History of Science. Brandt WD, 1:3-6. Dr. Brandt has published extensively in the field of the history of science and medicine for a period of almost three decades. He received a Pulitzer Prize nomination for one of his works, and, during the past decade, has published more than 15 peer-reviewed essays and articles on the history of cigarette smoking. Id. at 3:17-15:3.
536. In the course of his historical investigation of tobacco, Dr. Brandt has reviewed and analyzed the archival materials from the 1964 Surgeon General's Advisory Committee at the National Archives, and numerous additional archival collections, including those of Harvard University (William Cochran); the Countway Library at Harvard Medical School (J. McKeen Cattell), the University of Maine (C.C. Little); Washington University, St. Louis (Evarts Graham); the Wisconsin Historical Society (Bruce Barton, John W. Hill, Robert Lasch, M.V. O'Shea); the Alan Mason Chesney Medical Archives at the Johns Hopkins Medical Institutions (Lewis Robbins); University of Washington, Seattle (Warren Magnuson); the Library of Congress (Edward Bernays, Harvey Wiley); Yale University (Chester Bliss, Lester Savage); Duke University (the John W. Hartman Center for Sales, Advertising and Marketing History); the Smithsonian (NC Ayer Collection, The Warshaw Collection of Business Americana); the National Library of Medicine (Stanhope Bayne-Jones); and the National Archives (The Surgeon General's Advisory Committee). He has also reviewed internal documents of Defendants, including correspondence, reports, and memoranda on tobacco industry activities and programs. Id. at 26:14-28:13.
537. Much of the Government's evidence relating to the history of scientific research on lung cancer relies on Dr. Brandt's testimony. Defendants did not call any expert witnesses or present any testimony in this area.
538. By the middle of the twentieth century, physicians and public health officials in the United States had widely noted an alarming increase in the number of cases of lung cancer. Virtually unknown as a cause of death in 1900, by 1935 there were an estimated 4,000 deaths annually attributed to lung cancer. A decade later, the estimate of deaths attributed to lung cancer had nearly tripled. VXA1601844-2232 at 1986 (US 64057) (1964 Surgeon General Report); Brandt WD, 31:16-32:1.
539. The rise in lung cancer had followed the dramatic increase in cigarette consumption which began early in the twentieth century. Annual per capita consumption of cigarettes in 1900 stood at approximately forty-nine cigarettes; by 1930, annual per capita consumption was over 1,300; by 1950, it was over 3,000. Even though the increases in lung cancer cases and deaths substantially lagged behind the increase in cigarette use, the apparent association led to considerable speculation about what, if any, relationship existed between the two. VXA1601844-2232 at 1895-1898 (US 64057) (1964 Surgeon General Report); Brandt WD, 32:2-17; Samet TT, 9/29/04, 01031:13-01033:25.
540. The dangers of smoking, including its connection to lung cancer, began to attract the more concerted attention of scientists in the 1920s, when researchers began to focus on the specific health consequences of smoking. Brandt WD, 32:18-34:13.
541. As early as 1928, researchers conducting a large field study associated heavy smoking with cancer. 2060544267-4274 (US 39010) (Lombard, Herbert L. and Carl R. Doering, Cancer Studies in Massachusetts: Habits, Characteristics and Environment of Individuals With and Without Cancer, New England Journal of Medicine, 196.10: 481-487 (1928)); Brandt WD, 33:14-34:13.
542. In 1931, Frederick L. Hoffman, a well-known statistician for the Prudential Insurance Company, linked smoking with cancer, although the research left him with lingering methodological questions about representativeness, sample size, and the construction of control groups. VXA2510202-0219 (US 63597) (Hoffman, Frederick L., Cancer and Smoking Habits, Annals of Surgery, 93: 50-67 (1931)); Brandt WD, 33:21-34:4.
543. In 1938, a population biologist and biometrician from Johns Hopkins, Raymond Pearl, published one of the first significant statistical analyses of the health impact of smoking. Pearl's conclusion was that individuals who smoked could expect shorter lives. 503285883-5884 (US 20714) (Pearl, Raymond, Tobacco Smoking and Longevity, Science, 87:2253 (1938)); Brandt WD, 34:5-13.
544. Early research efforts led to publication in Germany in 1939 of the first case control study that showed the connection between smoking and lung cancer. VXA2510202-0219 (US 63597) (Hoffman, Frederick L., Cancer and Smoking Habits, Annals of Surgery, 93:67 (1931)); VXA251-0239 (US 63595) (F. H. Muller,Abuse of Tobacco and Carcinoma of the Lungs, Journal of the American Medical Association (translation of the original from Zeitschrift fur Krebsforschung, Berlin) (1939)); Brandt WD, 34:5-36:7.
545. In the 1930s, chest surgeons such as Alton Oschner and Richard Overholt published observations that the patients they saw with advanced lung malignancies were typically smokers. Oschner and another surgeon, DeBakey concluded that: "In our opinion the increase in smoking with the universal custom of inhaling is probably a responsible factor, as the inhaled smoke, constantly repeated over a long period of time, undoubtedly is a source of chronic irritation to the bronchial mucosa." 85868807-8823 at 8807 (US 63596) (Oschner, Alton, DeBakey, Michael, Primary Pulmonary Malignancy, Surgery, Gynecology and Obstetrics, 68:435-45 (1939)); Brandt WD, 34:14-36:7.
546. By the end of the 1940s, more evidence linking smoking to disease began to appear. Beginning in 1948, under the auspices of the Medical Research Council, a unit of the recently created National Health Service in the United Kingdom, Bradford Hill and Sir Richard Doll conducted a study to investigate the rising incidence of lung cancer. Following World War I, Hill had become one of the most distinguished medical statisticians in Great Britain. Doll, a physician, also possessed sophisticated training in statistics and epidemiologic methods. They realized that questions concerning the causality of systemic chronic diseases would not readily succumb to experimental laboratory investigation (unlike the study of infectious disease where specific causality was important). TIMN0145510-5519 at 5510, 5518 (US 62855) (Doll, Richard, and A. Bradford Hill, Smoking and Carcinoma of the Lung: Preliminary Report, British Medical Journal (1950)); Brandt WD, 32:18-34:13; 40:19-44:2.
547. From their data from lung cancer patients and a control group in late 1948 and early 1949, it became clear to Doll and Hill that cigarettes were the crucial factor in the rise of lung cancer. With data on almost 650 lung cancer patients, they concluded that "smoking is an important factor in the cause of carcinoma of the lung." The findings were impressive: among the 647 lung cancer patients in Doll and Hill's study, all 647 were smokers. They waited to publicize their results, however, until they had data on 1400 lung cancer patients, which further strengthened their conclusions. TIMN0145510-5519 (US 62855) (Doll Hill, Smoking and Carcinoma), supra; Brandt WD, 42:1-44:2.
548. In the early 1950s, Doll and Hill understood that some critics might dismiss findings linking smoking to disease as "merely" statistical — which is precisely what Defendants did. As a result, Doll and Hill meticulously described the specific criteria that they required before an "association" could be identified as a genuine causal relationship. First, they worked to eliminate the possibility of bias in the selection of patients and controls, as well as in reporting and recording their histories. Second, they emphasized the significance of a clear temporal relationship between exposure and subsequent development of disease. Finally, they sought to rule out any other factors that might distinguish controls from patients with disease. This explicit search for possible "confounders" and their elimination marked a critical aspect of their arrival at a causal conclusion. They insisted on carefully addressing all possible criticisms and all alternative explanations for their findings. In this respect, Doll and Hill expressed a strong commitment to inductive science, hypothesis-testing, and scientific method:
Consideration has been given to the possibility that the results could have been produced by the selection of an unsuitable group of control patients, by patients with respiratory disease exaggerating their smoking habits, or by bias on the part of the interviewers. Reasons are given for excluding all these possibilities, and it is concluded that smoking is an important factor in the cause of carcinoma of the lung.
VXA2510117-0126 at 0125 (US 63604) (Doll Hill, Smoking and Carcinoma of the Lung: Preliminary Report, supra); Brandt WD, 42:10-43:9.
549. Noted historian Charles Webster observed of the first Doll and Hill paper, published in 1950:
This modest paper is now regarded as a classic. From these findings emerged the realization that smoking has been responsible for as many deaths per annum as were claimed by the great cholera epidemics of the nineteenth century. Smoking was thus established as a major cause of preventable disease.
VXA2510301-0310 at 0301 (US 63589) (Webster, Charles, Tobacco Smoking Addiction: A Challenge to the National Health Service, British Journal of Addiction, 79:7 (1984)); Brandt WD, 46:4-47:23.
550. Doll and Hill's work withstood scientific scrutiny. Two years later, in a 1952 follow-up report, Doll and Hill offered additional evidence for sustaining their conclusion, again fully considering alternative explanations:
The present analysis of nearly 1,500 cases, or more than double the number dealt with in our preliminary report, supports the conclusion then reached and has revealed no alternative explanation — for example, in the use of petrol lighters.
It has been suggested that subjects with a particular physical constitution may be prone to develop (a) the habit of smoking and (b) carcinoma of the lung, and that the association might therefore be indirect rather than causal (Parnell, 1951). We know of no evidence of such a physical constitution characteristic of patients with lung carcinoma. If it does exist we should still have to find some environmental factor to account for the increased incidence of the disease in recent years.
VXA2510127-0142 at 0139 (US 63603) (emphasis in original) (Doll, Richard, and A. Bradford Hill, A Study of the Aetiology of Carcinoma of the Lung, British Medical Journal (1952)); Brandt WD, 43:10-44:2. This alternative explanation for the relationship between smoking and lung cancer came to be labeled the "constitutional hypothesis" by Defendants. See also Section III(C)(1)(¶ 55), supra.
551. Doll and Hill also sought to confirm the findings of their retrospective study through prospective investigation. They gathered data from 40,000 British physicians who were followed in order to see whether they would develop lung cancer. This study showed over time that heavy smokers had death rates 24 times higher than those of nonsmokers. Doll and Hill's research continued through June of 2004 when Doll and his colleagues published a fifty year observational study in the British Medical Journal. Brandt WD, 46:1-20; VXA2510001-0005 (US 63612) (Doll, Richard, and A. Bradford Hill, The Mortality of Doctors in Relation to Their Smoking Habits: A Preliminary Report, British Medical Journal (1954)); VXA2510006-0021 (US 63611) (Doll, Richard, and A. Bradford Hill, Lung Cancer and Other Causes of Death in Relation to Smoking, British Medical Journal (1956)).
552. Other researchers studied the connection between smoking and lung cancer during the same time period. In 1949, Evarts Graham, a leading surgeon at Barnes Hospital in St. Louis, and Ernst Wynder, a medical student at Washington University, designed and implemented a study to address and directly resolve the persistent and increasingly important questions concerning the possible harms of cigarette smoking. Graham, a nationally known surgeon who had performed the first pneumonectomy, was a heavy smoker himself and skeptical of the cigarette-lung cancer hypothesis.
553. Wynder and Graham collected extensive data on a group of 684 patients with lung cancer located in hospitals throughout the United States. These patients were extensively interviewed about their smoking levels and histories. Histological exams confirmed the diagnosis in all cases. This group was then compared to a "control group" of non-smokers, similar in age and other demographic characteristics. Wynder and Graham explained, "[T]he temptation is strong to incriminate excessive smoking, and in particular cigaret smoking, over a long period as at least one important factor in the striking increase of bronchiogenic carcinoma." They offered four reasons to support this conclusion. First, it was very unusual to find lung cancers among non-smokers. Second, among patients with lung cancer, cigarette use tended to be high. Third, the distribution of lung cancer among men and women matched the ratio of smoking patterns by gender. And finally, "the enormous increase in the sale of cigarettes in this country approximately parallels the increase in bronchiogenic carcinoma." These results were reported in the Journal of the American Medical Association ("JAMA"), a prestigious, peer reviewed journal, on May 27, 1950. VXA2510109-0116 at 0114 (US 63605) (Wynder, Ernst L., and Evarts A. Graham, Tobacco Smoking as a Possible Etiologic Factor in Bronchiogenic Carcinoma: A Study of Six Hundred and Eighty Four Proved Cases, JAMA, 143.4: 329 (1950)); Brandt WD, 32:18-34:13, 37:13-40:15.
554. That 1950 issue of JAMA also included the report of an investigation reaching similar conclusions by scientist Morton Levin and others. In his commentary on research into the connection between cigarettes and lung cancer, Levin compared the current epidemiological research on cigarette smoking to research on the smoking/lung cancer connection done in the preceding twenty years, arguing that the past work was "inconclusive because of lack of adequate samples, lack of random selection, lack of proper controls or failure to age-standardize the data." In the case of the data gathered for his study, careful attention to "excluding bias" had been central. Levin concluded that "in a hospital population, cancer of the lung occurs more than twice as frequently among those who have smoked cigarets [sic] for twenty-five years than among other smokers or nonsmokers of comparable age." VXA2510106-0108 at 0106, 0107 (US 63606) (Levin, Morton L., Hyman Goldstein, and Paul R. Gerhardt, Cancer and Tobacco Smoking; A Preliminary Report, JAMA, 143:4 (1950)); Brandt WD, 39:23-40:18.
555. By the 1950s, animal research was also pointing to the carcinogenicity of cigarettes. Wynder and Graham turned their attention to the question of the "biological plausibility" of their epidemiological findings. In conducting animal investigations, Wynder reasoned that if tumors could be produced in animals, it would be an important step in confirming the early epidemiologic findings. Noting that smoke condensates, also known as tars, contained benzopyrenes, arsenic and other known carcinogens, he painted the backs of mice to evaluate their effects. Fifty-eight percent of the mice developed cancerous tumors. Wynder concluded that "the suspected human carcinogen has thus been proven to be a carcinogen for a laboratory animal." These findings were reported in Cancer Research in December 1953. The study was often referred to as the Sloan-Kettering study because Wynder was affiliated with the Sloan-Kettering Institute of the Memorial Center for Cancer and Allied Diseases. CW00860130-0144 at 0137 (US 58868) (Wynder, Ernst L., Evarts A. Graham, and Adele B. Croninger,Experimental Production of Carcinoma with Cigarette Tar, Cancer Research, 13.12 (1953)); Brandt WD, 62:13-63:13; Harris WD, 62:4-63:10.
556. By late 1953, there had been at least five published epidemiologic investigations, as well as others, pursuing carcinogenic components in tobacco smoke and its impacts. These researchers' understanding of the link between smoking and lung cancer was markedly more certain than the case studies and preliminary statistical findings concluded earlier in the century. While some of the epidemiological methods were innovative, they were completely consistent with established scientific procedure and process. Epidemiology was not just based on statistics, but also was an interdisciplinary, applied field. The studies had substantially transformed the scientific knowledge base concerning the harms of cigarette use. Unlike earlier anecdotal and clinical assessments, these studies offered new and path-breaking approaches to investigating and resolving causal relationships. Brandt WD, 46:21-47:17.
557. Medical historians would come to view these studies as among the most important contributions to public health and medicine in the twentieth century. They offered a sophisticated scientific methodology for resolving central questions of causality. Id. at 46:21-48:6.
b. By 1953, Defendants Recognized the Need for Concerted Action to Confront Accumulating Evidence of the Serious Consequences of Smoking
558. The studies connecting smoking and lung cancer were receiving attention outside the scientific community by 1953. For example, published reports like a Readers' Digest article titled "Cancer by the Carton" shared the scientific findings in national media, creating public concern. 03358234-8235 (US 46459); Brandt WD, 48:1-18.
While the Court has not relied upon certain portions of Dr. Brandt's testimony, a careful review of all of Dr. Brandt's testimony, the documents he cited, and the documents which Defendants cited to rebut his testimony reveals that many of Defendants' characterizations of both the testimony and individual documents are out of context, unrepresentative, and unfair.
559. The "Cancer by the Carton" article, published in 1952 explained:
A study of 684 cases, made by Ernest L. Wynder and Evarts A. Graham for the American Cancer Society and published in the AMA Journal, May 27, 1950, stated this conclusion: "Excessive and prolonged use of tobacco, especially cigarettes, seems to be an important factor in the induction of bronchiogenic carcinoma."
More recently Wynder, now associated with Memorial Cancer Center in New York, expanded the statement: "The more a person smokes the greater is the risk of developing cancer of the lung, whereas the risk was small in a nonsmoker or a light smoker."
03358234-8235 at 8235 (US 46459).
560. In late 1953, shortly after the Wynder and Graham study was published, tobacco stocks declined. Overall cigarette sales had also declined about 2% in 1952, which was the first time sales had declined since the Great Depression. Harris WD, 63:11-64:12; 01138541-8542 (US 34313).
561. As already discussed, by 1953-1954, tobacco company executives were aware both of the significant scientific studies establishing smoking as a cause of lung cancer and the public attention the studies were receiving. Defendants' executives well understood that this new scientific evidence constituted a full-scale crisis for their respective companies. Brandt WD, 48:19-51:23.
562. As evidence regarding the harms of smoking surfaced, Defendants engaged in advertising campaigns to induce the public to believe that cigarette smoking was actually beneficial to one's health. Some examples of Defendants' advertisements include: Kent Micronite filters, which were supposedly "developed by researchers in atomic energy plants," Kent cigarettes, which claimed "No other cigarette approaches such a degree of health protection and taste satisfaction," and a Chesterfield ad claiming to cite test results that "smoking Chesterfields would have no adverse effects on the throat, sinuses, or affected organs." ADV1100001-0003 at 0002-03 (US 88703); LW02427396-7397 at 7396 (US 74413); ADV1110007-0009 at 0008 (US 88728); ADV1100040-0043 at 0042 (US 88715); Harris WD, 67:11-70:20.
563. While continuing to insist that there was no indication that cigarettes were unsafe, Defendants moved aggressively to market products which they implied were safer. In 1953, Defendant Liggett hired Arthur D. Little, Inc. ("ADL") to test tobacco condensates on mice in an attempt to develop strategies for removing carcinogens, at the same time that it advertised that its filters were "Just What the Doctor Ordered." VXA2611190-1190 (US 63543) (Liggett Advertisement, "Fredric March Says — This Is It L M Filters Are Just What the Doctor Ordered").
564. Defendants also developed the Tobacco Industry Research Committee ("TIRC") to sponsor research into "all phases of tobacco use and health" and to handle public relations for the tobacco industry in response to the growing body of scientific knowledge. See extended discussion of TIRC in Section III(C). The first Scientific Director of TIRC, appointed in 1954, was a well-respected geneticist and cancer researcher, Clarence Cook Little. A former president of the University of Maine and the University of Michigan, founder of the Roscoe B. Jackson Memorial Laboratory, and member of the National Academy of Sciences, Little quickly became a steadfast critic of the emerging scientific data linking cigarettes to cancer. Brandt WD, 86:4-88:5.
565. A confidential report of a TIRC meeting held October 19, 1954, made explicit Little's and Defendants' agenda: "[Little] declared that both he and the members of the board were aware of the attacks which had been made on tobacco for over 200 years, and wished to build a foundation of research sufficiently strong to arrest continuing or future attacks." CTRMN007295-7297 at 7295 (US 22900); Brandt WD, 86:4-88:5.
566. Little criticized those whose findings showed harms from tobacco use:
The right of an individual to determine his own level or threshold of convincibility is unquestioned.
There are and will always be individuals who are convinced without the need of experimental evidence that all tobacco in any form is evil, noxious and toxic. There are individuals with a similar attitude toward alcohol, coffee, and the use of drugs, sera or medicines.
* * *
Such assumptions [that smoking caused cancer] stimulated some investigators to begin an enthusiastic hunt for the "component" or "components" in tobacco smoke that can be blamed for the unproved cause-and-effect relationship as well as for the reported production of skin cancer in some experiments with certain strains of laboratory mice.501773418-3466 at 3428-3429 (US 20686) (emphasis in original); Brandt WD, 86:4-88:5.
567. Little continually called for more research: "In the active and continuing discussions about tobacco use and health, there seems to be nearly complete agreement among scientists on only one point: The need for much more intensive research into the subject." 501773418-3466 at 3425 (US 20686); Brandt WD, 86:4-88:5.
568. Under Little's leadership, the major thrust of TIRC was to emphasize that human cancers were complex processes — difficult to study and difficult to understand. Little directed TIRC towards what he called "pioneer research." He claimed that studies which focused on cigarettes could "stifle or delay needed research to find the basic origins of lung cancer or cardiovascular diseases, which are most powerful, diversified and deadly enemies to our well-being." 85865874-5946 at 5878 (US 21084); Brandt WD, 86:19-88:5.
569. Little also argued that there were no known carcinogens in tobacco tars (despite Defendants' clear knowledge to the contrary, as addressed in Section V(A)(5)(b)). He repeatedly centered attention on the so-called "constitutional hypothesis," other environmental risks, and the need for more research:
Too little is known about many factors, including why people smoke or what kind of people become particularly heavy smokers.
* * *
The problem of causation of any type of cancer is complex and difficult to analyze. All research on this so-called constitutional disease is, and must be, painstaking and time-consuming. There is not known today any simple or quick way to answer the question of whether any one factor has a role in causing human lung cancer.
Despite all the attention given to smoking as an accused factor in human lung cancer, no one has established that cigarette smoke, or any one of its known constituents, is cancer-causing to man [sic].
501773418-3466 at 3422-3423 (US 20686); Brandt WD, 85:10-86:3.
3. Developments Between 1953 and 1964
a. Between 1953 and 1964, the Evidence Demonstrating that Smoking Causes Significant Adverse Health Effects Grew Although No Consensus Had Yet Been Reached
570. During the 1950s, the evidence implicating smoking as a cause of lung cancer continued to grow. The published research employed different methodologies and was reported in well-respected peer reviewed journals. Id. at 66:10-73:10. Such research utilized clinical observation, population studies and laboratory investigation, all of which, alone or in combination, are traditional methods of scientific investigation. Brandt TT, 9/27/04, 643:5-652:11.
571. During the late-1950s, particularly 1957-1959, the scientific and medical evidence was mounting that smoking causes disease. However, there was still ongoing debate amongst respected and independent researchers and public health experts about both the substantive evidence showing causation and about the proper technical terminology to describe the degree of association between smoking and the disease.
572. Even as the evidence mounted demonstrating the causal link between smoking and disease, scientists equivocated on the exact nature of such causation. For example, in 1956, Dr. C.S. Cameron, the Medical and Scientific Director of the American Cancer Society ("ACS"), wrote an article, appearing in The Atlantic, on the history and ongoing research on smoking and lung cancer, which stated:
Most of the scientists who have given thought and study to the matter appear to agree that an association between cigarette smoking and cancer of the lung does exist. Whether that association is one of cause and effect is as yet unanswered in terms of major scientific opinion. . . . [The American Cancer Society] does not hold that smoking causes cancer of the lung.
(no bates) (JD 000310 at 71, 75) (C.S. Cameron, Lung Cancer and Smoking: What We Really Know, The Atlantic, 197(1):71-75 (Jan. 1956)). Cameron went on to state, however:
The American Cancer Society, along with a growing body of professional and scientific opinion, has taken this position: Although the complicity of the cigarette in the present prevalence of cancer of the lung has not been proved to the satisfaction of everyone, the weight of evidence against it is so serious as to demand the stewards of the public welfare that they make the evidence known to all.Id.
573. The debate on causation in the 1950s stemmed from those who believed that a causal judgment required experimental confirmation. Brandt TT, 9/27/04 at 726:13-21. For example, one respected researcher wrote: "proof is lacking and will remain absent until it becomes possible to produce cancer experimentally from some or all of the products contained in cigarette smoke." (no bates) (JD 002521 at 267) (E. Graham, Primary Cancer of the Lung With Special Consideration Of Its Etiology, Bulletin of the New York Academy of Med., 27:261-76 (1951)). As one article explained it, many scientists were skeptical of the epidemiologic evidence:
There is a history of skepticism toward field-based population studies, in contrast with studies performed in the laboratory . . . the epidemiologic and biostatistical techniques used in the retrospective studies of smoking and lung cancer were relatively new. Skepticism and misunderstanding of this new methodology played an important role in the debate over the health effects of cigarettes.
The article also states:
[T]he surgeon general and US Public Health Service (PHS) scientists had concluded as early as 1957 that smoking was a cause of lung cancer, indeed, "the principle etiologic factor in the increased incidence of lung cancer." Throughout the 1950s, however, the PHS rejected further tobacco-related public health actions. . . . It was not until pressure mounted from outside the PHS in the early 1960s that more substantive action was taken. Earlier action was not taken because of the way in which PHS scientists (particularly those within the National Institutes of Health) and administrators viewed their roles in relation to science and public health.
(no bates) (JD 004238 at 197) (M. Parascandola, Public Health Then and Now: Cigarettes and the US Public Health Service in the 1950s, Am. J. Pub. Health, 91(2):196-205 (2001)). In this good faith, professional debate, scientists seeking such experimental confirmation did not doubt the causal link between smoking and disease but rather doubted that it had been proven with scientific rigor. Brandt WD, 67:19-68:19.
574. Given this diversity of views amongst respected and independent scientists, the Court does not find, as the Government has argued, that, as of the mid-1950s, a consensus had yet been reached on whether cigarette smoking "caused" — in the precise scientific meaning of that term — cancer.
575. In 1956, at the urging of Surgeon General Leroy Burney, a Study Group on smoking and health was organized by the American Cancer Society, the American Heart Association, the National Cancer Institute, and the National Heart Institute. This group of distinguished experts met regularly to assess the character of the scientific evidence relating to tobacco and health. At that time, the Group noted that sixteen studies had been conducted in five countries all showing a statistical association between smoking and lung cancer. Among the studies they summarized, it was demonstrated that: lung cancer occurs five to fifteen times more frequently among smokers than nonsmokers; on a lifetime basis one of every ten men who smoke more than two packs a day will die of lung cancer; and cessation reduces the probability of developing lung cancer. VXA2510023-0027 (US 63610) (Strong, Frank M., et al., Smoking and Health: Joint Report of the Study Group on Smoking and Health, Science, 125:1129-1133 (1957)); Brandt WD, 69:22-71:7.
576. The Group also noted that the epidemiological findings were supported by animal studies in which malignant neoplasms had been produced by tobacco smoke condensates. Further, human pathological and histological studies added evidence to strengthen the "concept of causal relationship." The authors concluded:
Thus, every morphologic stage of carcinogenesis, as it is understood at present, has been observed and related to the smoking habit.
The sum total of scientific evidence establishes beyond reasonable doubt that cigarette smoking is a causative factor in the rapidly increasing incidence of human epidermoid carcinoma of the lung.
VXA2510023-0027 at 0023 (US 63610) (Strong, Frank M., et al.,Smoking and Health: Joint Report of the Study Group on Smoking and Health, Science, 125:1129-1133 (1957)); Brandt WD, 69:22-71:7.
577. However, the Study Group's judgment that smoking causes disease was not widely accepted. Dr. Michael Shimkin, a PHS researcher and a member of the Study Group, stated the Study Group's report "created no particular stir . . ." and was not widely accepted outside of the group itself. (no bates) (JD 060636) (Shimkin, M.B., In the Middle: 1954-63 — Historical Note, JNCI 62(5)-1295-1317 (May 1979)). Some of the very organizations which had sponsored the Study Group, including the National Heart Institute and the American Heart Association (US 63610 at 1129), did not accept its report as "sufficiently convincing." (no bates) (JD 060636 at 1297)). Individual scientists within NCI disagreed with the Group's conclusion, and there was definitely no clear consensus at NCI on the issue. Brandt TT, 9/27/04, 712:25-713:5, 715:9-16.
578. In 1957, NCI's Director, John Heller, gathered together the chiefs of four major NCI sections, Drs. Gilliam (Chief of Epidemiology), Hueper (Chief of the Environmental Cancer Section), Shear (NCI's expert on carcinogenesis), and Stewart (NCI's head pathologist) to determine their stance on the issue of whether smoking caused disease. He "received more denials than support." (no bates) (JD 060636 at 1298) (Shimkin, supra). "[T]heir paradigm of cancer research simply did not encompass the epidemiologic method." Id. Thus they "refused to recognize epidemiologic data that were not confirmed in laboratory animals." Id.
579. Because of the dissension within NCI over the causation issue, and its refusal to accept the conclusions of the Study Group, Surgeon General Burney appointed Dr. Lewis Robbins to be NCI's point person to deal with the issue of causation. Brandt TT, 9/27/04, 716:2-15; see also (no bates) (JD 060636 at 1298) (Shimkin, supra) ("[Burney] then ordered a fuller account to be prepared for his signature; this task was assigned to Dr. Lewis Robbins. . . .").
580. Dr. Robbins's first task was to write a brochure for physicians on smoking and lung cancer. Brandt TT, 9/27/04, 720:23-721:5; (no bates) (JD 004252 at 609). As the brochure "went through numerous reviews at the National Cancer Institute throughout the next 16 months" (no bates) (JD 004252 at 609), Dr. Robbins faced internal opposition. Within NCI's Carcinogenesis Branch, Drs. Hueper (Chief of the Environmental Cancer Section), Shear (NCI's expert on carcinogenesis) and Stewart (NCI's head pathologist) all opposed publication because they "disagreed with any emphasis that cigarette smoking induced lung cancer." Id. at 610.
581. In 1961, the editors of The New England Journal of Medicine stated that while:
the editors of the Journal have on occasion revealed their own suspicion that one side of this controversy is probably the one to which to cleave, it is perhaps not completely judicious for them to offer any extraneous comments at this time that might seem to favor either faction.
* * *
It is enough to say that most of the evidence is statistical and demonstrates a close association between heavy cigarette smoking and lung cancer.
* * *
Many conscientious observers believe that there are strong indications in favor of a causal relation in the vast majority of cases. . . . Others remain unconvinced. . . . Each individual must choose his own course, whether to woo the lady nicotine or abjure the filthy weed, while the search for truth continues.
(no bates) (JD 020447).
582. Based on the Study Group's review of existing material, Dr. Robbins's brochure, and subsequent research results, Surgeon General Burney believed in 1959 that the link between smoking and disease was significant and that, as a result, there were important and timely opportunities to prevent disease:
The Public Health Service believes that the following statements are justified by studies to date.
1. The weight of evidence at present implicates smoking as the principal etiological factor in the increased incidence of lung cancer.
2. Cigarette smoking particularly is associated with an increased chance of developing lung cancer.
3. Stopping cigarette smoking even after long exposure is beneficial.
4. No method of treating tobacco or filtering the smoke has been demonstrated to be effective in materially reducing or eliminating the hazard of lung cancer.
5. The nonsmoker has a lower incidence of lung cancer than the smoker in all controlled studies, whether analyzed in terms of rural areas, urban regions, industrial occupations, or sex.
6. Persons who have never smoked at all (cigarettes, cigars, or pipe) have the best chance of escaping lung cancer.
7. Unless the use of tobacco can be made safe, the individual person's risk of lung cancer can best be reduced by elimination of smoking.
VXA2510046-0054 at 0052-0053 (US 63608) (Burney, Leroy E.,Smoking and Lung Cancer: A Statement of the Public Health Service, JAMA, 71: 1828-1837 (1959)); Brandt WD, 76:13-77:21.
583. While Dr. Burney believed the link between smoking and disease was significant, his article did not come to a categorical conclusion. The PHS itself labeled Dr. Burney's conclusion "weasel words" that were necessitated by the strong disagreement over the issue within the agency itself. Brandt TT, 9/27/04, 707:4-708:3, 722:1-12; (no bates) (JD 022706 at 1) (Letter from L.C. Robbins, M.D., Chief, Cancer Control Program, to H.S. Diehl, M.D. (July 8, 1960)). The debate over what was proof of a "cause" is unmistakable in the early drafts of the Surgeon General's 1959 statement. To try to reach agreement on how the PHS would describe the evidence and the relationship, a number of drafts were circulated. (no bates) (JD 004252 at 611). Weeks before publication, in a November 1959 draft marked "final," the PHS planned to state that the area was "highly controversial," that there was "no scientific proof" of causation, and that the Surgeon General's article would "admit this":
[W]e feel justified to make a further observation which seems pretty well established. There exists no scientific proof that smoking causes lung cancer. Even the Surgeon General's special article admits this. . . . Today we have this "coincidence" of a statistical relationship between smoking and lung cancer. The pathological evidence of the relationship between the two, if not weak, is at least highly controversial.
(no bates) (JD 020373 at 1).
584. The dissent over the issue also led to PHS publication of an editorial opposing the Surgeon General's own article, which was published two weeks later. (no bates) (JD 023196) (at Tab 7); Brandt TT, 9/27/04, 722:13-723:4, 724:9-15 (written because of disagreement within Surgeon General's office and NCI). The editorial criticized Surgeon General Burney's statement on two related grounds. First, it acknowledged disagreement over its conclusion:
A number of authorities who have examined the same evidence cited by Dr. Burney do not agree with his conclusions.
Second, it pointed out the lack of evidence to support an authoritative position:
Neither the proponents nor the opponents of the smoking theory have sufficient evidence to warrant the assumption of an all-or-none authoritative position.
(no bates) (JD 000716 at 2104) (Smoking and Lung Cancer, JAMA, 171(15):2104 (1959)). See also Brandt TT, 9/27/04, 722:13-723:30.
585. In addition, outside of the public health community, surgeons and pathologists published clinical reports associating cancer in their patients with their smoking habits. In 1957, Oscar Auerbach and his colleagues first reported in the New England Journal of Medicine on "Changes in the Bronchial Epithelium in Relation to Smoking and Cancer of the Lung." Auerbach's study evaluated patients with confirmed smoking histories who died and were autopsied. In order to avoid any potential bias, microscopists were kept ignorant of the smoking histories in the 30,000 examinations that they made. Auerbach and his co-authors concluded:
These findings are fully consistent with the hypothesis that inhalants of one sort or another are important factors in the causation of bronchogenic carcinoma. The findings are also consistent with the theory that cigarette smoking is an important factor in the causation of bronchogenic carcinoma.
Auerbach presented additional confirmatory findings in 1961 and 1979. 682628764-8771 at 8771 (US 54185) (Auerbach, Oscar, et al.,Changes in the Bronchial Epithelium in Relation to Smoking and Cancer of the Lung: A Report of Progress, New England Journal of Medicine, 256.3:97-104 (1957)); VXA2511322-1328 (US 63538) (Auerbach, Oscar, E. Cuyler Hammond, and Lawrence Garfinkel,Changes in the Bronchial Epithelium in Relation to Cigarette Smoking, 1955-1960 vs. 1970-1977, New England Journal of Medicine, 300.8:381-386 (1979)); Brandt WD, 63:14-64:11.
586. During the same time period, E. Cuyler Hammond and Daniel Horn conducted a massive epidemiological study of smoking and lung cancer under the auspices of the American Cancer Society. In the Hammond and Horn study, more than 200,000 men were followed prospectively for nearly four years; during this period 12,000 died. The authors found that not only was lung cancer far more prevalent as a cause of death among those who smoked (twenty-four times more than nonsmokers), so too were heart disease and circulatory disease. Hammond and Horn estimated that among smokers, smoking might account for up to 40% of their mortality. VXA2510028-0045 (US 63609) (Hammond, E. Cuyler, and Daniel Horn,Smoking and Death Rates — Report on Forty-four Months of Follow-up of 187,783 Men, JAMA, 2840-2857 (1958)); Brandt WD, 65:16-66:9.
587. These results were consistent with research being carried on outside the United States. In 1957, the Medical Research Council of Great Britain issued a statement printed in the British Medical Journal and the Lancet which read:
Evidence from many investigations in different countries indicates that a major part of the increase [in lung cancer] is associated with tobacco smoking, particularly in the form of cigarettes. In the opinion of the Council, the most reasonable interpretation of this evidence is that the relationship is one of direct cause and effect. The identification of several carcinogenic substances in tobacco smoke provides a rational basis for such a causal relationship.
01149261-9264 at 9264 (US 63537); Brandt WD, 75:23-76:12. However, at that point in time, the Medical Research Council was not prepared to reach a categorical conclusion on causation.
588. In January 1959, Jerome Cornfield, who was Assistant Chief of the Biometrics Section at the National Cancer Institute and Chairman of the Department of Biostatistics at Johns Hopkins University, offered a substantive review of the available evidence linking cigarettes to lung cancer. Cornfield and his colleagues carefully considered the range of alternative hypotheses to account for the significant rise in cases of, and deaths from, lung cancer. They concluded:
The magnitude of the excess lung-cancer risk among cigarette smokers is so great that the results can not be interpreted as arising from an indirect association of cigarette smoking with some other agent or characteristic, since this hypothetical agent would have to be at least as strongly associated with lung cancer as cigarette use; no such agent has been found or suggested. The consistency of all the epidemiologic and experimental evidence also supports the conclusion of a causal relationship with cigarette smoking, while there are serious inconsistencies in reconciling the evidence with other hypotheses which have been advanced. Unquestionably there are areas where more research is necessary, and, of course, no single cause accounts for all lung cancer. The information already available, however, is sufficient for planning and activating public health measures.
This paper also explicitly refuted ongoing critiques by two well-known statisticians, Fisher and Berkson:
We see nothing inherently contradictory or inconsistent in the suggestion that one agent can be responsible for more than one disease, nor are we lacking in precedents. The Great Fog of London in 1952 increased the death rate for a number of causes, particularly respiratory and coronary disease, but no one has given this as a reason for doubting the causal role of the Fog. Tobacco smoke, too, is a complex substance and consists of many different combustion products. It would be more "incredible" to find that these hundreds of chemical products all had the same effect than to find the contrary. A universe in which cause and effect always have a one-to-one correspondence with each other would be easier to understand, but it obviously is not the kind we inhabit.
VXA2510068-0098 at 0068, 0091 (US 63607) (Cornfield, Jerome, et al., Smoking and Lung Cancer: Recent Evidence and Discussion of Some Questions, Journal of the National Cancer Institute, 22.1:173-203 (1959)); Brandt WD, 71:23-73:10.
589. In 1960, the World Health Organization ("WHO") also issued a statement signaling its agreement with the Surgeon General's and Medical Research Council's conclusions. After conducting a review of the scientific findings, the WHO found a causal link to be the "most reasonable interpretation." Brandt WD, 77:22-78:1; Brandt TT, 9/27/04, 704:12-14.
590. In 1962, yet another thorough and far-reaching assessment of the scientific evidence reached the same conclusions as previous studies. The British Royal College of Physicians, after two years of investigation, stated, "[d]iseases associated with smoking now cause so many deaths that they present one of the most challenging opportunities for preventive medicine today." The report concluded:
The strong statistical association between smoking, especially of cigarettes, and lung cancer is most simply explained on a causal basis. . . . The conclusion that smoking is an important cause of lung cancer implies that if the habit ceased, the death rate from lung cancer would eventually fall to a fraction, perhaps to one fifth or even, among men, to one tenth of the present level. Since the present annual number of deaths attributed to lung cancer before the age of retirement is some 12,000 . . . a large amount of premature shortening of life is at issue.
(no bates) (JD 001007); Brandt WD, 78:2-17.
591. From 1953 to 1964, in articles, speeches, and testimony, the debate continued amongst many of the most respected scientists and organizations in the country:
1953: NCI's Director, Dr. John R. Heller, "testified that there has not been any conclusive proof that smoking causes cancer." Brandt TT, 9/28/04, 885:10-13. See also (no bates) (JD 004219 at 1018) (Department of Labor-Federal Security Agency Appropriations for 1954: Hearings Before the Subcomm. of the Comm. on Appropriations, 83rd Cong. 1018 (1953) (testimony of Dr. John Heller: "As you are well aware, the correlation of heavy cigarette smoking has been mentioned in connection with the occurrence of lung cancer, but this has not, to our satisfaction, definitely been established. . . .")).
1953: Three senior PHS scientists noted the statistical association, but stated "the etiological significance of these associations remains unestablished." (no bates) (JD 000720 at 1256) (D.A. Sadowsky, et al., The Statistical Association Between Smoking and Carcinoma of the Lung, JNCI, 13:1237-58 (Aug. 1952-June 1953)).
1954: Dr. Hueper, NCI's Chief of the Environmental Cancer Section stated that "causation had not been proven." Brandt TT, 9/27/04, 709:10-19.
1954: Surgeon General Scheele stated the "not proven" position and the clear need for "much more study." (no bates) (JD 020490 at DMA001 0629) ("Heavy cigarette smoking and the allegation that it causes lung cancer have received much attention lately. There appears to be a statistical correlation between heavy cigarette smoking and the occurrence of lung cancer, however, we do not believe that adequate evidence of a positive causal relationship has been proven. Much more study is required and is now in progress.").
1954: Dr. Jesse Greenstein, Chief of NCI's Biochemistry Laboratory, wrote a biochemistry book which states: "At this time, the etiological significance of the apparent association of lung cancer and smoking remains unestablished." (no bates) (JD 000719 at 167) (Greenstein, J.P., Biochemistry of Cancer: Chapter III — Extrinsic Factors (Academic Press 2nd ed.) (1954)).
1955: NCI's Chief of Environmental Cancer, Dr. Hueper, lectured that the value of statistical data was "at best circumstantial." (no bates) (JD 000467 at 67, 69) (Cigarettes, Laboratory Tests . . . The Industry . . . Medical Aspects, Consumer Reports, 20(2):56-73 (Feb. 1955) ("Dr. Hueper and some other experts regard the evidence linking lung cancer and cigarette smoking as insufficient or contradictory, and the theory generally as not proven. . . . [A]ccording to Dr. Hueper, a world-renowned authority on environmental carcinogens, 'the cigarette theory is almost entirely based on statistical data having at best circumstantial value and being in part of questionable origin.'")). See also (no bates) (JD 020522 at 173-74) (An Analysis of the Environmental Causes of Lung Cancer, American Pharmaceutical Manufacturers's Ass'n Proceedings of the Mid-Year Meeting at 149-178 (Dec. 6-8, 1954)).
1955: NCI's scientists reported to be "pretty well divided" on the possible causal relationship. (no bates) (JD 000711 at 8) (Edward R. Murrow, Cigarettes Lung Cancer, CBS television broadcast transcript, June 7, 1955). However, by 1957, NCI's Director, Dr. Heller "made it clear that 'only one or two' scientists in the NCI were not in agreement with the PHS [Public Health Service] view on the evidence." (no bates) (JD 004238 at 200).
1956: NCI's Director, Dr. Heller, testified before Congress that it was NCI's view that a cause and effect relationship between smoking and lung cancer had not yet been demonstrated. Brandt TT, 9/28/04, 886:3-9.
1957: Surgeon General Burney testified before Congress that final answers had not been secured, and, without "much more definitive information," a warning campaign should not be commenced. False and Misleading Advertising: Hearing Before the Legal Mon. Aff. Subcommittee of the Committee on Government Operations, 85th Cong., 133-162 (1957). Surgeon General Burney went on:
We believe that ["it is confirmed beyond a reasonable doubt that there is a high degree of statistical association between lung cancer and heavy and prolonged cigarette smoking"], and Dr. Heller's group agrees with that. . . . I would like to say again, however, that we do not believe the final answers have been secured and that there is a limit to what a responsible, official Federal agency can or should do before they have all available information. That is why I think we have stopped at a certain point. Using our particular judgment, and that until such time as we have much more definitive information, we should not go all out on a campaign and put stickers on cigarettes and certain other things.
Surgeon General Burney and Dr. Heller of the NCI testified about the agreement between scientists with respect to the role that smoking plays in lung cancer:
[T]here are many scientists in the Cancer Institute, and many differences of opinion, scientists being scientists. However, I would disagree . . . that there is a wide variation in attitude. Even a particular scientist who believes that air pollution is much more of a factor, for example, than smoking, says, however, that there is no doubt that smoking is incriminated in this process and it is simply a matter of degree. . . . I would say that the consensus in the Cancer Institute — I can't speak for the entire Public Health Service, but certainly in the Cancer Institute and in the National Institutes of Health — the consensus is reflected in the statement which the Surgeon General has promulgated. . . . An overwhelming majority [agree]. I would say with the exception of only 1 or 2 who do not agree completely with this viewpoint, but the overwhelming majority of the scientists in the National Institute of Health agree.
(no bates) (JD 11816 at 160). Dr. Heller further explained the agreement among scientists.
Taking the country as a whole . . . I would say the majority of them concur in this viewpoint. There are certain individuals . . . who do not agree. . . . This is characteristic of science in general, where there is a difference of opinion on many subjects. However, when one analyzes it to the utmost, there is not as much difference as one might think on the surface. . . . My best guess is that 75 percent of the physicians or scientists who have knowledge and some competence in this area would concur with this formula.Id. at 161.
1957: NCI's Director, John Heller, told Congress that "elucidat[ing] the basic mechanism involved" was of the greatest importance in the direction of research. (no bates) (JD 000332 at 145) (Advertising (Filter-Tip Cigarettes), Hearings Before a Subcomm. of the Committed. on Government Operations, House of Representatives, 85th Cong. 145 (1957)).
1960: Biometrics Branch Chief, Dr. Harold Dorn, co-reporter for WHO's Technical Report No. 192, "Epidemiology of Cancer of the Lung," stated that "epidemiological studies of a disease such as lung cancer identify general factors that affect the incidence of the disease. The identification of the specific agent responsible for the effect of a general factor (for example, cigarette smoking or air pollution) must usually be made by laboratory or experimental studies. The Study Group recommends that such studies be encouraged. . . . The Study Group also wished to call attention to the fact that existing knowledge of the etiology of lung cancer is already sufficiently well established to justify prophylactic action aimed at reducing exposure to known etiological factors." FED 100017175-7184 at 12-13 (JD 045987).
592. As the debate continued, by the early 1960s, the overwhelming majority of the scientific and medical community had come to believe that smoking was causally linked to disease. For example, in 1962, Dr. Lewis C. Robbins, of NCI, acknowledged that although science could not yet take an "authoritative position" on the issue of causation, the public health stakes were too great to wait for submission of the complex experimental proof required by traditional causation standards. Instead, PHS would send its message to the public based on a less stringent "public health" viewpoint:
While one may be unable to take an authoritative position concerning proof of a relationship between smoking and lung cancer, there is a public health viewpoint which is of the greatest importance: It appears that there may not be definitive studies concerning this relationship in our lifetime. . . . There comes a time when science can show a high degree of probability but cannot answer the final question: Should this be applied to people? It is here that the practice of preventative medicine must pick up and take the final step.
(no bates) (JD 020481 at 2).
593. In sum, by the early 1960s, the view of the scientific community had reached the conclusion that the evidence supporting a causal relationship between smoking and lung cancer was sufficiently established and recognized — albeit not to a scientific certainty — that it was appropriate to warn the public of the dangers it faced.
b. Before 1964, Defendants Internally Recognized the Growing Evidence Demonstrating that Smoking Causes Significant Adverse Health Effects
594. Internal documents reveal that Defendants' knowledge of the potential harm caused by smoking was markedly different from their public denials on the same subject. Defendants specifically recognized the validity of the growing body of scientific evidence that existed in the 1950s.
595. At the same time that Defendants assured the public through their 1953 "Frank Statement" that "there is no proof that cigarette smoking is one of the causes [of cancer]," they documented a large number of known carcinogens contained in cigarette smoke. 86017454-7454 (US 21418).
596. For example, a December 24, 1952 memorandum titled "Report of Progress — Technical Research Department" contained a "Cancer" section, which noted: "The B W lab has in the past made a partial isolation and identification of the aromatic hydrocarbon, benzopyrene, in both smoke and original tobacco from RALEIGH blend cigarettes." The report refers to benzopyrene as a "carcinogenic hydrocarbon." 65020084-0095 at 0092 (US 21388).
597. Beginning in 1954, the BAT Group's major research laboratory performed research into the carcinogenicity of cigarette smoke by conducting skin-painting experiments on mice. As noted at Section V(A)(5)(b)(¶ 671), infra, this research showed that when compounds in cigarette smoke were painted onto mouse skins, they caused cancerous tumors. 682621615-1617 at 1615 (US 54180).
598. RJR recognized smoking as a cause of disease in mice as early as 1953. This knowledge is documented in a February 1953 Report drafted by Claude Teague, an RJR research scientist, titled "Survey of Cancer Research with Emphasis on Possible Carcinogens from Tobacco." It was clear to Teague that, "[s]ome workers have attempted to produce experimental cancers in test animals by application of tars obtained from tobacco, tobacco smoke, and other materials derived from tobacco." Teague further acknowledged: "On the basis of the information at hand, it would appear that polynuclear aromatic compounds occur in the pyrolytic products of tobacco. Bensyprene and 'N-bensyprene[sic], both carcinogens, were identified in the distillates. . . . Studies of clinical data tend to confirm the relationship between heavy and prolonged tobacco smoking and incidence of cancer of the lung." 501932947-2968 at 2952-2953, 2961, 2963 (US 21407).
599. A 1959 RJR document written by Alan Rodgman, an RJR scientist, discusses a 1954 report of a "carcinogenic (cancer producing) polycyclic hydrocarbon, 3, 4-benzpyrene" and elaborates on RJR's in-house research which corroborated this finding:
There is no evidence that any of these compounds will produce cancer in man. Nonetheless, there is a distinct possibility that these substances would have a carcinogenic effect on the human respiratory system. Medical experience has shown that man responds to various chemical substances in the same manner as experimental animals. It follows therefore that it would be better for the consumer if cigarette smoke were devoid of such compounds.
* * *
Some thirty-odd polycyclic hydrocarbons have since been similarly characterized in these laboratories. Of these, eight are carcinogenic to mouse epidermis.
500945942-5945 at 5942 (US 21249).
600. RJR sought to remove some of the cancer-causing compounds at the same time it was publicly denying that the compounds even existed: "[H]aving confirmed and extended the early published findings on polycyclic hydrocarbons in cigarette smoke, we initiated a lengthy research program to develop methods to lessen the amounts of these potentially dangerous compounds in cigarette smoke." 500945942-5945 at 5943 (US 21249).
601. Rodgman's later work corroborated his prior findings. In 1956, he wrote an extensive paper on "The Analysis of Cigarette Smoke Condensate." In it, Rodgman explained:
The research described in this report represents a concerted effort to determine whether or not the polycyclic aromatic hydrocarbons are present in cigarette smoke condensate. One of the major objections offered to previous investigations is that the identification of specific compounds solely on the basis of ultraviolet absorption studies is not definitive. Since the present research describes the actual isolation, identification and characterization of several polycyclic aromatic hydrocarbons including the highly carcinogenic 3, 4-benzpyrene, the major criticisms of past research are now nullified.
Rodgman further wrote of the studies undertaken using standard Camel cigarettes:
In view of this data, it is logical to assume that the carcinogenic activity of cigarette smoke condensate is due to the presence of one or more carcinogenic polycyclic aromatic hydrocarbons.
* * *
Since it is now well-established that cigarette smoke does contain several polycyclic aromatic hydrocarbons, and considering the potential and actual carcinogenic activity of a number of these compounds, a method of either complete removal or almost complete removal of these compounds from cigarette smoke is required.
501008241-8293 at 8254, 8279, 8280 (US 20667).
602. Rodgman's views were consistent with what visiting scientists from the United Kingdom observed in 1958 about researchers working for Defendants. The three British scientists reported widespread acceptance among top officials and scientists in the United States tobacco industry, including those at TIRC, Liggett, Philip Morris, and American, that smoking causes disease. They further noted that there was virtual consensus among researchers within the industry that cigarettes played a role in the production of human cancers:
With one exception (H.S.N. Greene) the individuals whom we met believed that smoking causes lung cancer if by "causation" we mean any chain of events which leads finally to lung cancer and which involves smoking as an indispensable link. In the U.S.A. only Berkson, apparently, is now prepared to doubt the statistical evidence and his reasoning is nowhere thought to be sound.
* * *
In their [Liggett's] opinion T.I.R.C. has done little if anything constructive, the constantly re-iterated "not proven" statements in the face of mounting contrary evidence has thoroughly discredited T.I.R.C., and the S.A.B. of T.I.R.C. is supporting almost without exception projects which are not related directly to smoking and lung cancer. Liggetts [sic] felt that the problem was sufficiently serious to justify large-scale investment by the Company directly in experimental research on smoke and cancer, accepting privately that a strong case against tobacco had been made out and avoiding any public comment until their own research had provided something concrete to offer.
* * *
The majority of individuals whom we met accepted that beyond all reasonable doubt cigarette smoke most probably acts as a direct though very weak carcinogen on the human lung. The opinion was given that in view of its chemical composition it would indeed be surprising if cigarette smoke were not carcinogenic. This undoubtedly represents the majority but by no means the unanimous opinion of scientists in U.S.A. These individuals advised us that although it is not possible to predict unambiguously the effect of any substance on man from its effect on experimental animals the generally successful use of animals in other fields as a model for man fully justifies their use in our problem.
TINY0003106-3116 at 3108, 3111, 3112 (US 21369) (emphasis in original); Brandt WD, 94:8-96:13; Brandt TT, 9/28/04, 820:6-20.
603. In 1962, Rodgman offered his assessment of "the smoking and health problem":
Although the major part of the sales of this Company consists of cigarettes, what the Company sells is cigarette smoke. This Company, therefore, should be concerned with the physiological properties and composition of cigarette smoke. The benefits from such knowledge are obvious, particularly [sic] it anticipates possible governmental regulation. During the past two decades, cigarette smoke has been the target of a host of studies relating it to ill-health and particularly to lung cancer. The majority of these studies incriminate cigarette smoke from a health viewpoint.
* * *
Epidemiological data: The results of 34 different statistical studies show that cigarette smoking increases the risk of developing lung cancer. Many authorities believe the relationship to be one of cause-and-effect. . . . The statistical data from the smoking-health studies are almost universally accepted. After more than ten years, criticisms of the studies have been reduced to the dictum. A statistical study cannot prove a cause-and-effect relationship between two factors.
Rodgman made explicit that he considered the evidence of smoking's harm convincing:
The Evidence to Date: Obviously, the amount of evidence accumulated to indict cigarette smoke as a health hazard is overwhelming. The evidence challenging this indictment is scant. Attempts to shift the blame to other factors, e.g., air pollutants, necessitates acceptance of data similar to those denied in the cigarette smoke case.
* * *
It has been repeatedly stated that some scientists discount the cigarette smoke-lung cancer theory. This is true. But it should be noted that many of those quoted in this regard are on record with contrasting views, e.g., Berkson, the statistician, has stated ". . . the definitive important finding of these statistical studies is not that there is an association between smoking and lung cancer, but that there is an association between smoking and deaths from all causes generally. . . ."
504822847-2852 at 2847-2848, 2850-2852 (US 20735) (emphasis in original); Brandt WD, 96:14-99:4.
604. Despite these writings, in 1995, Dr. Rodgman stated under oath that, as of 1962, he disagreed that it was "more likely than not that cigarette smoking caused health problems. This explanation is in direct contradiction to the clear wording of his own documents, set forth above, written 40 years before his 1995 testimony. Moreover, Dr. Rodgman had a financial incentive to offer favorable testimony to RJR when he testified. He worked for RJR as a scientist from 1954 to 1987, rising to the level of R D Director of Fundamental Research. Since his retirement from RJR in 1987, Rodgman has been retained as a paid smoking and health litigation consultant to Womble Carlyle PLLC ("Womble"), earning as much as a total of $600,000. Rodgman PD, United States v. Philip Morris, 6/26/02, 23:20-32:8. At the same time that he was being paid as a consultant to Womble, Rodgman also served as a fact witness for RJR in its defense of various smoking and health cases. Id. at 12:10-16, 27:1-32:8, 33:2-25, 37:1-41:12, 42:14-43:11. Dr. Rodgman's recantation of the extensive analysis and findings of his research of the late 1950s and 1960s is patently not credible.
605. Lorillard also conducted research which pointed to cigarette smoking as a cause of cancer and other diseases. In the early 1960s, Lorillard conducted in-house experiments on animals that showed ciliastatic effects of tobacco smoke on the respiratory tract. The cilia are small hair-like structures in the lungs which help move particles out and keep the airways clean. Spears PD, Blue Cross/Blue Shield of New Jersey v. Philip Morris, 3/23/00, 144:4-22.
606. Philip Morris also recognized the link between cigarette smoking and disease. A July 24, 1958 memorandum written by C. Mace, head of research for Philip Morris, admitted that Philip Morris was aware that smoking was linked to lung cancer. The memorandum stated that "the evidence . . . is building up that heavy cigarette smoking contributes to lung cancer either alone or in association with physical and physiological factors." 1000305086-5087 at 5086 (US 20090).
607. Dr. Helmut Wakeham, a high-ranking Philip Morris scientist, wrote in a September 22, 1959 memorandum regarding nicotine:
One of the main reasons people smoke is to experience the physiological effects of nicotine on the human system. Nicotine, to the best of present knowledge, does not produce cancer. Hence, in theory one could achieve the major advantage of smoking without the hazard of cancer. But nicotine in tobacco smoke is present in the tar phase, and so far a reduction in tar by filtration or otherwise has been accompanied by a comparable reduction in nicotine.
1005039423-9424 at 9424 (US 21657).
608. Liggett internally linked smoking and disease, and sought to reduce or remove hazardous constituents. In a memorandum dated March 15, 1961, Arthur D. Little, Inc., Liggett's outside research consultant, summarized the results of the work it performed for Liggett:
1. There are biologically active materials present in cigarette tobacco.
These are: a) cancer causing
b) cancer promoting
c) poisonous
d) stimulating, pleasurable, and flavorful.
2. There is no reason why the poisonous group, CO, HCN, NO2, etc., cannot be reduced, even though they are not seen as a primary health hazard. Methods for removal are:
a) filtration (treated carbon, etc.)
b) treatment for removing precursors, CN elimination
c) addition as a reactant (urea for NOs).
3. Cancer promoting materials, esters, phenols, amines, can possibly be reduced by some treatment, extraction, etc.
4. The cancer-causing materials apparently are in many substances that are pyrolyzed but seem to be associated with tobacco in greater concentration than for primarily cellulose.
These findings were marked "confidential." 2021382496-2498 at 2496 (US 20345).
609. A Liggett working memorandum titled "Alternative Theories of Carcinogenesis," prepared on April 24, 1963, acknowledged a causal relationship between "the chemical properties of ingested tobacco smoke" and development of carcinoma that was suggested by Defendants' scientists. 2022969727-9728 (US 20368).
c. In the 1950s, Defendants Began Their Joint Campaign to Falsely Deny and Distort the Existence of a Link Between Cigarette Smoking and Disease, Even Though Their Internal Documents Recognized Its Existence
610. Beginning in the 1950s, all Defendants, including TIRC, the Tobacco Institute and TIRC's successor, The Council for Tobacco Research-U.S.A., Inc. ("CTR"), issued numerous false public statements designed to mislead the public about the connection between cigarette smoking and disease.
611. A March 1954 public speech to the National Association of Tobacco Distributors by George Weissman, a Vice President with Defendant Philip Morris, captured Defendants' public position that there was no link between smoking and disease:
For never in the history of American industry — a history that not so incidentally had its origins in tobacco — has one industry been under such attack as we are today, never has an industry's very existence been so dependent on its relations with the public.
* * *
Which brings me to another, and even more important current problem! — the current medical propaganda being directed against the cigarette industry by a small number of doctors and a large number of magazines, and newspapers. As many, if not more, distinguished scientists have disputed the arbitrary statements of the few doctors. As many, if not more, distinguished researchers, have pointed out other factors such as air pollution rather than cigarette smoking. There are many scientists who question the statistics and even doubt the fact that there is a health question involved in cigarette smoking. Yet, who rated the headlines when the charges were made? Unfortunately, the cigarette industry. Where were the denials and counterclaims? You sometimes had to use a microscope to find them. . . . If we had any thought or knowledge that in any way we were selling a product harmful to consumers, we would stop business tomorrow.
2022239339-9343 at 9339, 9341 (US 21766) (emphasis in original); Brandt WD, 49:23-50:10.
612. On April 14, 1954, TIRC published "A Scientific Perspective on the Cigarette Controversy," which restated the Frank Statement's pronouncement that the Defendants had accepted "an interest in people's health as a basic responsibility, paramount to every other consideration in our business." A total of 205,000 copies were printed and sent to 176,800 doctors, general practitioners and specialists. It was also sent to the deans of medical and dental colleges. The book and an accompanying press release went to a press distribution of 15,000, including editors of daily and weekly newspapers, consumer magazines, veterans magazines, and medical and dental journals, news syndicate managers, business editors, editorial writers, science writers, radio and television commentators, news columnists, and Members of Congress. The Sunday New York Daily News (circulation 3,800,000) gave feature treatment to the booklet, devoting a major part of the page to comment and a cartoon. The story was also sent to some 1,400 radio stations. 1005039987-0008 at 9990 (US 20192); TLT0902954-2955 (US 88388).
613. In a July 1, 1954 statement by TIRC, Defendants promised not only to conduct research on the relationship between smoking and disease, but also to make their findings known to the public. VXA2511193-1194 (US 63544).
614. On October 13, 1954, in newspapers such as the New York Daily Mirror, Timothy Hartnett, Chairman of TIRC, was quoted as saying that "no clinical evidence has yet established tobacco to be the cause of human cancer." ATC2454770-4770 (US 87049).
615. TIRC issued a July 15, 1957 press release titled "Scientist Comments on Benzypyrene Report," where it disputed the United States Surgeon General's report that benzypyrene had been identified in cigarette smoke, and stated that scientists had concluded that benzypyrene in cigarette smoke cannot be a cause of cancer in smokers. This public statement contradicted internal B W research. 11313243-3244 (US 20280); 650200084-0095 (US 21388).
616. The Tobacco Information Committee, a TIRC subcommittee, published the first in a series of Tobacco and Health newsletters in October 1957. The newsletters contained articles that disputed the relationship between smoking and disease, criticized research that supported such a relationship, and asserted that differing opinions existed regarding tobacco use and health. The newsletter was sent to the medical and scientific communities. It reached a circulation of 520,000 in 1962, with about 315,000 copies being sent to doctors, dentists, and medical schools. The admitted purpose of the publication was to rebut and discredit the charges against tobacco. TIMN123324-3327 (US 21282); 511018410-8413 (US 22459); TIMN0070640-0656 (US 21299); TIMN0070657-0674 (US 22983); TIMN0081443-1457 (US 21307).
617. A December 16, 1957 press release from TIRC falsely stated that "[n]o substance has been found in tobacco smoke known to cause cancer in human beings." 500518708-8711 at 8708 (US 21834).
618. With the rising popularity of filters, Defendants attempted to promote their new filtered cigarettes as safer, without explicitly admitting that their previous products caused health problems. They continued to insist that the rise of filter cigarettes merely reflected the nature of consumer demand. James P. Richards, President of the Tobacco Institute, explained on June 30, 1958:
The cigaret industry has not changed its mind. Our position was and is based on the fact that scientific evidence does not support the theory that there is anything in cigaret smoke known to cause human lung cancer. . . . [The Tobacco Institute] believes that the health of the people is more important than dividends for any industry.
TIMN0122775-2775 (US 21326).
619. In a newspaper article published on November 19, 1958, Clarence Cook Little was quoted as saying that there was scant clear evidence that smoking caused lung cancer, that much more research was needed, and that TIRC would continue to provide funds for independent research in universities and hospitals until the final answers were obtained. 501860595-0595 (US 21233).
620. In a December 27, 1958 public statement, Hartnett, still TIRC's Chairman, emphasized that links to smoking and disease remained undetermined and asserted that an increasing number of factors were being associated statistically with lung cancer. He cited occupational exposures, specific air pollutants, place of birth and residence, previous lung ailments, and nutrition, claiming that these factors and others were subjects of much scientific investigation. He said that:
at its formation in January 1954, the Tobacco Industry Research Committee stated its fundamental position: "We believe the products we make are not injurious to health." We are pledging aid and assistance to the research effort into all phases of tobacco use and health. That statement and pledge are reaffirmed today by the members of the Tobacco Industry Research Committee.
500518759-8761 at 8761 (US 20636); Brandt WD, 88:6-89:4.
621. In another Tobacco and Heath newsletter, TIRC claimed:
Continuing scientific research lends support to the position that too many unknowns exist today concerning lung cancer to warrant conclusions placing a major causative role on cigarette smoking, according to the 1957 Report of the Scientific Director of the Tobacco Industry Research Committee.
The publication also declared:
Cigarette smoking is compatible with normal health, and even heavier-than-average cigarette smoking is compatible with better-than-average mortality rates, according to a scientific report presented before the Southern Medical Association.
MNAT00515648-5651 at 5648 (US 72185); Brandt WD, 84:10-85:2.
622. On November 27, 1959, the Tobacco Institute issued a statement attacking the article written by Surgeon General Burney on the hazards of cigarette smoking. See ¶¶ 137, 624; TIMN0110091-0091 (US 21319).
623. Little issued the following statement one day after publication of Burney's 1959 evaluation:
Despite the recent research trends, the conclusions set forth in the Public Health Service review rely almost entirely on past reports that are no more conclusive today than when these reports were first published. Most of the points are not new but are familiar to the American public because they were first advanced some years ago in statistical studies that admittedly are not supported by experimental evidence.
503283464-3467 at 3465-3466 (US 22981); Brandt WD, 90:20-92:5.
624. Hill and Knowlton, TIRC's public relations counsel, explained its strategy in anticipation of the Burney report:
Comment from TIRC for the press remains an effective way to meet anti-tobacco publicity efforts and emphasizes the multiple factors that should be considered. This, of course, is complemented with a continuing program of supplying information to give editors and writers a balanced perspective on questions of tobacco and health.
* * *
Published in the November 28 issue of the Journal of the American Medical Association, the article signed by the Surgeon General presented a selection of published data about smoking as related to lung cancer. Anticipating the appearance of the Burney article and learning of its contents in advance of publication, it was possible to provide the press promptly with statements from Dr. C.C. Little, Mr. James P. Richards, president of The Tobacco Institute, and others. Press stories used the tobacco industry comment in covering the Surgeon General's article.
HT0145148-5150 at 5148 (US 21177); Brandt WD, 92:23-94:7.
625. Internally, Defendants acknowledged that, as William Kloepfer, Vice President of Public Relations for the Tobacco Institute wrote to Earle Clements, President of the Tobacco Institute:
Our basic position in the cigarette controversy is subject to the charge, and may be subject to a finding, that we are making false or misleading statements to promote the sale of cigarettes.
TIMN0072354-2356 at 2354 (US 63576).
626. But Defendants' campaign continued. On July 6, 1961, the Tobacco Institute issued a press release that quoted the Tobacco Institute President George Allen's comments on current health concerns regarding cigarette smoking: "The tobacco industry itself is more interested than anyone else in finding out and making public the true facts about tobacco and health." Allen further claimed that "research in recent years has produced findings that weaken rather than support the claim that smoking is a major contributor to lung cancer." TIMN0104428-4429 at 4428 (US 21762).
627. George Allen, President of the Tobacco Institute, explained the Defendants' ongoing position in a radio interview:
ALLEN: . . . All the medical authorities as far as I know, or practically all of them, agree that nobody knows what causes cancer, and specifically lung cancer, and this is a matter that remains to be found by thorough and energetic scientific investigation.
* * *
ALLEN: . . . That study [from the Royal College of Physicians, 1962], while considered very strong in its accusations, charges regarding smoking, nevertheless that study itself said that the majority of people smoke without any harm to their system. So if you say, am I going to get lung cancer if I smoke, a lot of people get lung cancer who have never smoked in their lives. We had a recent case, in which 27 nuns had died of lung cancer, not all together, not in the same place, but among the statistics . . . who had never been near tobacco. So, certainly one would have to say that if you just ask the question flatly, if I smoke, will I get lung cancer, there are many, many cases and evidences — cited statements to the fact that there is no proved cause and effect relationship between the two.
500062010-2018 at 2011, 2015-2016 (US 20619); Brandt WD, 114:6-115:7.
628. On March 14, 1963, eleven months before the release of the 1964 Surgeon General's Report, the Tobacco Institute issued a press release to the New York Times containing a statement by Allen:
Scientific opinions differ widely. Many scientists say that more must be learned before it will be known whether any of the factors now under study, including smoking, has a role in causation of diseases such as lung cancer, and, if so, whether that role is direct or indirect, primary or incidental. In the opinion of these scientists, singling out tobacco as a major factor is not warranted by scientific knowledge.
TIMN0131426-1426 (US 21336).
629. On April 15, 1963, ten months before the release of the 1964 Surgeon General's Report, Allen commented on a recent booklet issued by the American Cancer Society:
There is dispute among scientists as to the causes of lung cancer. Many differing opinions exist. . . .
The booklet does not purport to contribute new knowledge. It is our belief that the answers to questions about diseases such as lung cancer will come through the research laboratory, not through booklets or campaigns for or against smoking.
TIMN0118348-8349 at 8348 (US 21320).
630. A June 1963 Tobacco Institute statement by Allen similarly claimed that there was "dispute among scientists as to the causes of lung cancer." Allen reported that since 1954 the tobacco manufacturers had supported grant-in-aid research through TIRC and had contributed more than $6 million in funds towards independent medical and scientific research. While the research programs were continuing, the press release claimed that research findings regarding underlying causes of cancer and cardiovascular diseases were to that date inconclusive. TIMN0104311-4312, at 4311 (US 21317).
631. A July 9, 1963 press release reaffirmed the Tobacco Institute's public position to not accept any claims that smoking played a part in causation of human disease until further research provided facts to link smoking to certain health effects. The release quoted Allen:
With the numerous theories, statements, and resolutions that have been presented to the public, there is some danger of losing sight of what ought to be the basic objective of all who are concerned. That is, doing the needed research. We believe the answers will be found. And they will be found in the scientific laboratory, not through pronouncements either for or against tobacco.
TIMN0098597-8598 at 8598 (US 21270).
632. In September 1963, the Tobacco Institute issued a publication titled "Tobacco and The Public Interest." It provided: "[t]here ought to be a respite from theories, resolutions and emotional statements for a time at least, so that scientists can objectively evaluate what is known and what is not known." He reaffirmed Defendants' purported commitment to research to find necessary facts:
That is what this industry has tried to do in the past, through the research program of the [TIRC]. And that is what we shall do in the future, until enough facts are known to provide solutions to the health questions involved.
TIMN0104251-4256 at 4254, 4256 (US 21316).
633. On October 11, 1963, in order to intensify Defendants' public relations campaign in anticipation of the 1964 Report, the Tobacco Institute issued a press release: "Allen Outlines Some of Reasons Why Smoking-Health Theory is Disputed." It provided:
[P]eople sometimes forget that there are good reasons why the theories about smoking and health problems are in dispute, and are often questioned by responsible scientists. . . . [T]he original theory about smoking and lung cancer — the theory that smoke was a direct, contact carcinogen — has virtually been abandoned.
He asserted that the case against smoking rested largely on statistical studies, whose meanings were questioned by many leading medical statisticians, and that there was a growing interest among scientists studying the issue as to the possible role of constitutional and genetic factors. TIMN0118249-8250 at 8249 (US 21561).
634. On November 3, 1963, a Tobacco Institute news release titled "Tobacco Industry Confident Research Will Find Answers, George Allen Says," stated that Allen was "convinced that scientific research will discover the answers to questions about smoking and health and the causes of the diseases with which smoking has been associated." After cataloguing Defendants' positions on smoking and health, Allen "suggested a moratorium on resolutions and emotional statements about smoking and health, so that scientists can objectively evaluate what is known and what is not known." TIMN0118245-8246 at 8245, 8246 (US 77055).
635. The Surgeon General's Report was released on January 11, 1964. Following the release of the Report, Defendants continued to assert alternative causation theories. Despite overwhelming evidence from a wide range of disciplines including statistics and epidemiology, pathology and chemistry, clinical observation, and animal experimentation, as well as their own internal research, Defendants continued to claim "no proof" and continued to attempt to create doubt about the scientific findings.
636. Defendants recognized — and used — the denial and rationalization used by smokers. In a memo to Joseph F. Cullman of Philip Morris, George Weissman, Executive Vice President Overseas (International), described how, in response to the 1964 Surgeon General's Report, "we must in the near future provide some answers which will give smokers a psychological crutch and a self-rationale to continue smoking." Among the "crutches" and "rationales" proposed to be offered to the smokers were questions of medical causation, "that more research is needed," and that there are "contradictions" and "discrepancies." 1005038559-8561 at 8559-8560 (US 20189).
637. In testimony on June 25, 1964, five and a half months after issuance of the 1964 Surgeon General's Report, at a hearing of the Committee on Interstate and Foreign Commerce, Bowman Gray, Chairman of the Board of RJR, stated:
I believe . . . that nearly everyone familiar with these difficult problems would agree that there are large and basic areas where there is lack of knowledge, uncertainty, and where a great deal more research is essential before definitive answers can be made. Many distinguished scientists are of the opinion that it has not been established that smoking causes disease.
501935056-5071 at 5060 (US 20690).
638. In a newspaper article dated July 12, 1964, Horace Kornegay, the Chairman and President of the Tobacco Institute, was quoted as saying: "There exists no definite proof that smoking cigarettes causes lung cancer or any other dreaded disease." TIMN013181-3181 (US 88779) 3.
639. On August 17, 1964, CTR issued a press release quoting Little: "The fact remains that knowledge is insufficient either to provide adequate proof of any hypothesis or to define the basic mechanisms of health and disease with which we are concerned." MNAT00287815-7818 at 7815 (US 21224).
640. On December 29, 1965, the Tobacco Institute issued a press release reiterating that research had not established whether smoking causes disease and that it was still an "open question." The release went on to state that "[i]f there is something in tobacco that is causally related to cancer or any other disease, the industry wants to find out what it is, and the sooner the better." TIMN0123790-3793 at 3790, 3791 (US 21330).
641. On October 21, 1966, more than two years after issuance of the 1964 Surgeon General's Report, the Tobacco Institute issued a public statement to newspapers that stated that the tobacco industry knew "of no valid scientific evidence demonstrating that either 'tar' or nicotine is responsible for any human illness." TIMN0099040-9041 at 9040 (US 21550).
4. The 1964 Surgeon General Report Represented a Scientific Consensus that Smoking Causes Disease
a. The Process and Methodology of the Surgeon General's Report
642. In 1961, the Surgeon General created his Advisory Committee on Smoking and Health to perform a comprehensive evaluation of all the existing research regarding cigarettes and disease and offer a definitive assessment. The process of the Committee's formation, its selection, its substantive work, and its findings were designed to represent a model of objective, public scientific and medical inquiry based on a rigorous and systematic assessment of the health implications of smoking. Brandt WD, 99:5-112:1. The findings of the Advisory Committee would become the Surgeon General's Report.
643. Surgeon General Luther Terry first drew up a list of some 150 individuals as potential Advisory Committee members. None were known to have taken a public position regarding the relationship of smoking and health. These individuals represented a number of fields and medical specialties from pulmonary medicine to statistics, cardiology to epidemiology. This list was then circulated to the American Cancer Society, the American Heart Association, the National Tuberculosis Association, and the American Medical Association, as well as the Tobacco Institute. Each group was permitted to eliminate any name, without citing any reason. Individuals who had already published on the issue or had taken a public position were also eliminated. The selection process indicated Terry's commitment to a process that would produce a genuine and definitive consensus. Dr. Terry had wanted to ensure that the Report could not be attacked on the basis of its membership. All ten of the members finally selected were eminent physicians and scientists; eight were medical doctors, one was a chemist and the other a statistician. Three of the panelists smoked cigarettes, two others occasionally smoked pipes or cigars. VXA1601844-2232, at 1864-1867 (US 64057) (1964 Surgeon General Report); Brandt WD, 100:8-102:8.
644. All of the major companies manufacturing cigarettes and other tobacco products were invited to submit statements and any information pertinent to the inquiry. The replies which were received were taken into consideration by the Committee. VXA1601844-2232 at 1870 (US 64057) (1964 Surgeon General Report); Brandt WD, 100:8-102:8.
645. Terry's first ten selections all agreed to serve on the Advisory Committee, indicating to him "that these scientists were convinced of the importance of the subject and of the complete support and confidence of the Public Health Service." VXA2511396-1397 at 1396 (US 21376) (Terry, Luther L., The Surgeon General's first report on smoking and health: A challenge to the medical profession, New York State Journal of Medicine, 1254 (1983)); Brandt WD, 102:4-23.
646. The Report drew on the respective disciplinary strengths of the Advisory Committee members. Walter J. Burdette was a prominent surgeon and chair of the Surgery Department at the University of Utah; John B. Hickman was the Chair of Internal Medicine at the University of Indiana; and Charles LeMaistre was a pulmonary specialist and head of a very large cancer treatment center. The pathologists joining the Committee were: Emmanuel Farber, Chair of Pathology at the University of Pittsburgh; Jacob Furth from Columbia, an expert on the biology of cancer; and Maurice Seevers, Chair of the University of Michigan Pharmacology Department. Louis Feiser of Harvard University was an eminent organic chemist. Completing the Committee were: Stanhope Bayne-Jones, a bacteriologist, former head of New York Hospital and Dean of Yale Medical School; Leonard H. Schumann, epidemiologist at the University of Minnesota; and William G. Cochran, a Harvard University mathematician with expertise in statistical methods. VXA1601844-2232 at 1864-1867 (US 64057) (1964 Surgeon General Report); Brandt WD, 102:9-23.
647. Terry divided the preparation of the 1964 Report into two distinct phases. The first phase, the work of the Advisory Committee, was to determine the "nature and magnitude of the health effects of smoking." The Committee sought to arrive at a clinical judgment on smoking. As one public health official explained, "What do we (that is, The Surgeon General of the United States Public Health Service) advise our patient, the American public, about smoking?" VXA2511346-1350 at 1346 (US 63531).
648. The Advisory Committee met together nine times in just over a year. In between these meetings, both Committee members and staff worked to review, critique, and synthesize what had become a formidable volume of scientific work on tobacco. Terry promised that the report on these findings would be followed by phase II, proposals for remedial action, thereby insulating the Committee from the politics that swirled around the tobacco question. Terry recognized that the Advisory Committee could only speak with authority about the scientific nature of the health risks of smoking; he would leave the policy questions to the political process. Brandt WD, 103:23-104:19.
649. Beginning with the first Report in 1964, the United States Public Health Service has followed the scientific consensus formation approach when producing a Report of the Surgeon General on Smoking and Health. The scientific community forms a consensus on issues of causation by reviewing all of the scientific evidence available; examining that evidence for its strength, consistency, coherence, temporal association and biological plausibility; and then reaching a judgment as to whether the data support a causal relationship between smoking and a disease. Burns WD, 14:13-19.
650. The Reports go through a careful process to ensure that individual biases play no role in determining the conclusions or statements reached. That process occurs through a set of expert reviews of the Report at various stages in its preparation. Individual scientists, usually outside of the government, are first selected and asked to write chapters on a given topic. Sometimes the entire Report will be devoted to a specific topic, like cancer or heart disease or lung disease. In that case, individuals are asked to write chapters or sections on specific questions that relate to the general issue examined, so that chapters can be assembled to cover the entire topic. The individual authors selected are extremely knowledgeable in the specific area that they are asked to write about. They are directed to consider all of the pertinent scientific literature and to base the chapter's conclusions on the data presented in that literature rather than on the author's personal views. Initial drafts of chapters are prepared for each Report by the individual authors, and the initial drafts are received and then edited into chapters. Id.
651. Once the chapters are submitted by the initial author, the editors make all subsequent changes and the chapters are not resubmitted to those authors for their approval of the changes. The chapters are next sent out to a group of expert scientific reviewers for peer review of their scientific accuracy and completeness, as well as for balance, tone and appropriateness of the conclusions drawn from the scientific data. These comments are integrated into the volume, and the entire volume is then sent out to a group of senior scientists in the academic community for further review for its accuracy, balance and tone. The Report is also formally reviewed by each of the agencies of the Public Health Service. Id.
652. Once these many reviews are completed, the editors again integrate the comments into the text to strengthen its substance. Each Report is then submitted for final formal clearance by the Centers for Disease Control, by the Assistant Secretary for Health, by the Surgeon General, and by the Secretary of Health and Human Services. Once the Report is cleared, it is transmitted as a formal requirement of law to Congress as the official position of the HHS on the issue. It is also released to the public and the press. Id. at 15:3-16:7. In the 1960s and 1970s, it took approximately one year to complete the Report preparation process. More recently, given the vast expansion in the body of smoking and health literature, it has required two to three years to accomplish the task of preparing a Report of the Surgeon General on Smoking and Health. Burns WD, 16:8-11.
653. As part of that process, the Advisory Committee established a set of criteria to evaluate the significance of a statistical association. Recognizing that such evaluation requires judgment, the Committee sought to specifically define the process, as rigorously as possible, and set forth five specific conditions for judging causal relations:
a. Consistency of the Association. Nearly all the retrospective and prospective studies produced comparable results, despite the fact that different methods were employed for collecting data.
b. Strength of the Association: the ratio of lung cancer rates for smokers versus nonsmokers. The Committee assessed the significance of the dose effect phenomenon, finding that risk increased with amount smoked. According to the Report:
[A]verage smokers of cigarettes have a 9 — to 10 fold risk of developing lung cancer, and heavy smokers, at least a 20-fold risk. Thus it would appear that the strength of the association between cigarette smoking and lung cancer must be judged to be high.
c. Specificity of Association. This criteria, according to the Report:
implies the precision with which one component of an associated pair can be utilized to predict the occurrence of the other, i.e. how frequently the presence of one variable (e.g., lung cancer) will predict, in the same individual, the presence of another (e.g., cigarette smoking).
In a discussion of the specificity of the relationship between any factor possibly causal in character and a disease it may produce, it must be recognized that rarely, if ever, in our biologic universe, does the presence of an agent invariably predict the occurrence of a disease. Second, but not less important, is our growing recognition that a given disease may have multiple causes.
In the current case, the specificity of the association was especially strong. The Report explained, "of the total load of lung cancer in males about 90 percent is associated with cigarette smoking."
d. Temporal Relationship of Associated Variables: the Advisory Committee wrote:
Exposure to an agent presumed to be causal must precede, temporally, the onset of a disease which it is purported to produce. . . . [N]o evidence has thus far been brought forth to indicate that the initiation of the carcinomatous process in a smoker who developed lung cancer antedated the onset of smoking.
e. Coherence of the Association: the Advisory Committee concluded:
A final criterion for the appraisal of causal significance of an association is its coherence with known facts in the natural history and biology of the disease.
VXA1601844-2232 at 2033-2036 (US 64057) (1964 Surgeon General Report); Brandt WD, 105:6-111:7.
654. The 1964 Surgeon General's Advisory Committee's assessment of causality was based on a coherent and logical set of criteria, which have become the basic methodology for causal inference concerning disease since issuance of the Report. Brandt WD, 104:20-108:21.
b. The Conclusions
655. The 387-page 1964 Surgeon General's Report, citing 7,000 articles, came to the following conclusions:
Cigarette smoking is associated with a 70 percent increase in the age-specific death rates of males. The total number of excess deaths causally related to cigarette smoking in the U.S. population cannot be accurately estimated. In view of the continuing and mounting evidence from many sources, it is the judgment of the Committee that cigarette smoking contributes substantially to mortality from certain specific diseases and to the overall death rate.
* * *
Cigarette smoking is causally related to lung cancer in men; the magnitude of the effect of cigarette smoking far outweighs all other factors. The data for women, though less extensive, point in the same direction.
* * *
The risk of developing lung cancer increases with duration of smoking and the number of cigarettes smoked per day, and is diminished by discontinuing smoking.
VXA1601844-2232 at 1884 (US 64057) (1964 Surgeon General Report); Brandt WD, 108:22-111:7.
656. The 1964 Report carefully evaluated the animal studies that had been conducted up to that time:
Condensates of tobacco smoke are carcinogenic when tested by application to the skin of mice and rabbits and by subcutaneous injection in rats.
* * *
Bronchogenic carcinoma has been produced in laboratory animals by the administration of polycyclic aromatic hydrocarbons, certain metals, radioactive substances, and viruses. The histopathologic characteristics of the tumors produced are similar to those observed in man and are predominantly of the squamous variety.
VXA1601844-2232 at 1884, 1994-1997, 2016 (US 64057) (1964 Surgeon General Report); Brandt WD, 108:22-111:7.
657. The 1964 Report found much higher death rates among smokers, as compared with nonsmokers; these rates increased with consumption:
The death rate for smokers of cigarettes only, who were smoking at the time of entry into the particular prospective study, is about 70 percent higher than that for nonsmokers. The death rates increase with the amount smoked. For groups of men smoking less than 10, 10-19, 20-39, and 40 cigarettes and over per day, respectively, the death rates are about 40 percent, 70 percent, 90 percent, and 120 percent higher than for nonsmokers. The ratio of the death rates of smokers to nonsmokers is highest at the earlier ages (40-50) represented in the studies, and declines with increasing age. The same effect appears to hold for the ratio of the death rate of heavy smokers to that of light smokers. In the studies that provided this information, the mortality ratio of cigarette smokers to nonsmokers was substantially higher for men who started to smoke under age 20 than for men who started after age 25. The mortality ratio was increased as the number of years of smoking increased. In two studies which recorded the degree of inhalation, the mortality ratio for a given amount of smoking was greater for inhalers than for non-inhalers.
VXA1601844-2232 at 1888-1889 (US 64057) (1964 Surgeon General Report); Brandt WD, 108:22-111:7.
658. The 1964 Report also reached conclusions as to coronary heart disease:
Although the causative role of cigarette smoking in deaths from coronary disease is not proven, the Committee considers it more prudent from the public health viewpoint to assume that the established association between cigarette smoking and coronary disease has causative meaning than to suspend judgment until no uncertainty remains.
The 1968 Report went a step further, concluding that
[b]ecause of the increasing convergence of epidemiological and physiological findings relating cigarette smoking to coronary heart disease it is concluded that cigarette smoking can contribute to the development of cardiovascular disease and particularly to death from coronary heart disease.
VXA1601844-2232 at 1885 (US 64057) (1964 Surgeon General Report); ATC1081418-1542 at 1430 (US 65351) (1968 Surgeon General Report).
659. From both a clinical and a public health perspective, the 1964 Report concluded that stopping smoking lowered an individual's risk of disease and health:
Cigarette smokers who had stopped smoking prior to enrollment in the study had mortality ratios about 1.4 as against 1.7 for current cigarette smokers. The mortality ratio of ex-cigarette smokers increased with the number of years of smoking and was higher for those who stopped after age 55 than for those who stopped at an earlier age.
VXA1601844-2232 at 1888-1889 (US 64057) (1964 Surgeon General Report).
660. The 1964 Surgeon General's Report on Smoking and Health is widely considered by historians to be one of the most significant documents in the history of twentieth century public health. Brandt WD, 99:5-112:1.
5. Post-1964 Research on the Adverse Health Effects of Smoking and Defendants' Persistent Denials Thereof
a. Following Publication of the 1964 Report, the Scientific Community Continued to Document the Link Between Smoking and an Extraordinary Number of Serious Health Consequences
661. Smoking and health is one of the most studied subjects in the field of public health. The Smoking and Health Database, maintained by the Centers for Disease Control and Prevention, United States Department of Health and Human Services, is a bibliographic database — accessible via the internet — which includes more than 62,000 items on smoking and health and covers over thirty years of information. The medical literature is replete with extensive epidemiological studies, conducted over decades, comparing the disease and death rates of millions of smokers and nonsmokers. Every relevant population and demographic group has been examined. Examples of these studies are: American Cancer Prevention Study I and II; British Physicians Study; Dorn Study of United States Veterans; National Health Interview Study; Current Population Survey; and the Behavioral Risk Factor Survey. Burns WD, 9:2-16.
662. This body of literature has been cited, reviewed, and discussed in Reports of the Surgeon General on Smoking and Health published in 1964, 1967, 1968, 1969, 1971, 1972, 1973, 1974, 1975, 1976, 1979, 1980, 1981, 1982, 1983, 1984, 1985, 1986, 1988, 1989, 1990, 1992, 1994, 1998, 2000, and 2001. Id.
663. The scientific conclusions presented in each of the Reports of the Surgeon General are based on the consensus of then — existing scientific understanding. Burns WD, 14:10-12.
b. Defendants' Internal Documents and Research from the 1960s, 1970s, and Beyond Reveal Their Continued Recognition That Smoking Causes Serious Adverse Health Effects and Their Fear of the Impact of Such Knowledge on Litigation
664. By at least January 1964, with the issuance of the Surgeon General's 1964 Report, Defendants knew there was a consensus in the scientific community that smoking caused lung cancer and other diseases. Despite that fact, they publicly insisted that there was a scientific controversy and disputed scientific findings linking smoking and disease knowing their assertions were false.
665. Following issuance of the 1964 Surgeon General's Report, Helmut Wakeham, then Vice-President of Research and Development at Philip Morris Inc., admitted in a research report that there was "little basis for disputing the findings [of the 1964 Surgeon General's Report] at this time" and acknowledged that the Report reflected a "professional approach" of the Advisory Committee. However, Philip Morris continued to maintain — for another thirty-five years — its public position that the causal link between smoking and health was an "open question." 1000335612-5625 at 5615, 5616 (US 22986).
666. According to a February 1964 report prepared by Alan Rodgman at RJR, "Cigarette smoke from any tobacco type or tobacco blend contains carcinogenic components." The report also indicated that "[n]one of the chemical data acquired in our studies or in studies conducted elsewhere is inconsistent with reported biological, pathological, or statistical data indicting cigarette smoke as a health hazard." 504912643-2713 at 2704 (US 20736).
667. In August 1964, Rodgman recognized in an internal RJR document:
Many nitrosamines [substances in tobacco smoke] have been shown to be carcinogenic for different organs in several species of animals. As nitrosamines are formed by the reaction of oxides of nitrogen with secondary amines, it is possible that cigarette smoke could contain nitrosoanabasine and nitrosonornicotine. Nitroanabasine, which is a derivative of the carcinogenic nitrosopiperidine, has now produced many tumors of the esophagus when given orally to rats.
501013277-3277 (US 20670).
668. In 1966, in a semi-annual report on Philip Morris's "Project 6900," which explored the biological activity of tobacco smoke, Project Director Peter C. Luchsinger noted that "cigarettes will most likely be implicated as one of the causative agents in these diseases [emphysema and bronchitis]." Luchsinger noted that in a series of long-term primate experiments financed by Philip Morris, monkeys forced to inhale smoke had a higher rate of emphysema than those in a non-smoking control group. Project 6900 included other experiments with smoking rodents, cats and other animals to determine whether different cigarettes affected lung function in a different manner or to a different degree. Luchsinger's report, never released to the public and marked "[n]ot to be taken from this room," concluded that, based on long-term inhalation studies, "gross lung pathology can be induced by smoking cigarettes." 100341400-1414 at 1402, 1406 (US 20095).
669. A May 1967 report on "Project 6900" described further tests with mice, pigs, monkeys and cats, concluding that filtered smoke was "no less tumorigenic than nonfiltered smoke." 1000342063-2073 at 2065 (US 20096).
670. Philip Morris Senior Scientist, Dr. Helmut Wakeham, informed Philip Morris executives on January 10, 1969, that "[n]ow we have a study of the effect of smoking in pregnancy which supports previous conclusions that smoking mothers produce smaller babies," and that the medical field recognized that "smaller babies suffer detrimental effects all through life," including "lower intelligence test scores at age 10." 1000211305-1307 at 1306 (US 20080).
671. A 1969 Phillip Morris memorandum revealed:
A review of recent mouse skin painting data from the Harrogate Laboratories appearing in progress reports of the Tobacco Research Council (Great Britain) indicates strong support for previously published data on the following points: Cigaret smoke condensate painted on the backs of mice over a two-year period produces tumors in numbers proportionate to the amount of condensate applied. In other words, the dose-response relationship is clearly being followed in these experiments.
2025010581-0583 at 0591 (US 20405).
672. In the 1960s, RJR established a facility in Winston-Salem, North Carolina, which used mice to research the health effects of smoking. In this facility, nicknamed the "Mouse House," RJR scientists researched a number of specific areas, including studies of the actual mechanism whereby smoking causes emphysema. Internally, an RJR-commissioned report favorably described the Mouse House work as the most important of the smoking and health research efforts because it had come close to determining the underlying mechanism of emphysema. Bumgarner PD, Texas v. American Tobacco, 11/11/86, 32:9-33:5
673. Research done in RJR's science and health group located at the Mouse House was routinely withheld from the scientific community — scientists were forbidden to both discuss and publish their findings. Id. at 35:3-38:18.
674. As a result of the Mouse House work, RJR was aware that smoking was linked to emphysema. After extended exposure to smoke, the animals suffered weight loss and changes in metabolism of lipids both in surfactant and in lung and liver. Id. at 63:17-66:15, 68:14-20.
675. RJR knew that exposing rabbits to tobacco smoke led to: slowing of heartbeat during puffs, decrease in pulse pressure, increased number of goblet cells, alveolar collapse, erythema of nasopharynx, acute pulmonary edema, erythema, endocardial hemorrhage, kidney disease, bronchial hyperplasia, emphysema, epithelial hyperplasia, bronchial edema, bronchiolar plugs, and gross lesions on lungs. 515384994-4999 (US 87983) (1969 Research Report titled "Initial Attempts at Exposing Rabbits to Whole Cigarette Smoke").
676. Moreover, the fact that RJR scientists had produced emphysema in chronic-smoke-exposed rats was known to Philip Morris. In a 1969 Philip Morris document concerning the biological research program at the Mouse House and the linkage it showed to smoking and disease, a Philip Morris scientist wrote:
I met Dr. Price from R.J Reynolds at the CTR-USA meeting of December 11 and 12, 1969. He mentioned doing chronic cigarette smoke exposure studies with rats. The animals received up to 500 cigarettes and emphysema was produced.
1001882748-2749 at 2748 (US 26123).
677. In 1970, Philip Morris's President complained to RJR about the work going on in the Mouse House. Despite the progress made there, RJR responded to the complaint by abruptly closing the Mouse House — disbanding the entire research division in one day, without giving notice to the staff, firing all twenty-six scientists at the Mouse House, and destroying years of smoking and health research. 110315968-5971 (US 26378). The scientists were told that the terminations were not a reflection on their work, but that "economic reasons" caused a change in the direction of the company. When they were dismissed, they were reminded that they had signed confidentiality agreements that meant they were not to discuss company research. Bumgarner, PD,Texas v. American Tobacco, 11/11/96, 38:19-44:4, 44:5-53:24.
678. At the meeting informing employees working at the Mouse House of its disbanding, the group was informed by its supervisor that the legal department had requested their lab notebooks. They were initially told that the notebooks would be returned to them, but they were not. Later, Anthony V. Colucci, Director of the company's Scientific Litigation Support Division, informed them that some of the notebooks had been accidentally destroyed in the legal department. Id. at 38:19-44:4. Only one was ever produced as evidence in this case.
679. Defendants also obtained evidence about the health effects of smoking that was contrary to their public statements from research they funded jointly. Dr. Gary Huber conducted smoking and health research funded by Defendants from 1972 to 1980 while working at Harvard University Medical School. Huber's research was conducted pursuant to a written agreement between Harvard and B W, Liggett, Lorillard, RJR, and Philip Morris. The agreement created the Harvard Research Tobacco and Health Program, with Huber as its head and chief investigator. Huber PD, Texas v. American Tobacco, 9/20/97, 11:9-12:16, 24:1-11, 24:13-25:9.
680. Huber and his group used laboratory animals to conduct numerous studies into the response of the lungs to tobacco smoke. These studies assessed the effects of smoke on lung airways, lung parenchyma, and the heart and cardiovascular systems of animals. The studies also looked at COPD, emphysema, chronic bronchitis and coronary artery disease. Huber's animal studies utilized commercially available and research cigarettes, including commercially available cigarettes supplied by Defendants, and produced human-type diseases in the lungs of animals that inhaled cigarette smoke. The inhalation studies demonstrated changes in animal lungs that Huber's group concluded were analogous to human diseases. Id. at 12:4-13:20, 40:13-15, 40:17-25, 42:2-43:3.
681. Huber specifically reported to his sponsors — B W, Liggett, Lorillard, RJR, and Philip Morris — that his research demonstrated a response to inhaled cigarette smoke, including disease mechanisms similar to those associated with diseases in humans. Id. at 12:20-13:20, 14:17-15:1, 15:6-16, 17:24-18:14, 18:22-24, 19:3-9.
682. Huber also conducted research funded by Defendants that studied changes in human smoking behavior as a function of lower and higher nicotine levels in cigarettes. The research demonstrated that smokers of lower nicotine cigarettes had an increased risk of developing pulmonary disease. Huber found that "compensation," or smoking behavior modifications, exhibited by smokers of lower nicotine cigarettes, rendered such cigarettes potentially more harmful than higher nicotine counterparts because more intense inhalation carried the smoke deeper into the lung where adenocarcinoma generally occurs.Id. at 49:6-50:3, 50:5-51:4, 51:6-11.
683. Another group of inhalation studies conducted by Huber focused on rats. The research showed that rats exposed to cigarette smoke developed emphysema. Huber reported these results to Defendants. Id. at 17:16-18, 18:21-24, 19:3-9.
684. Huber had frequent contact with scientists working for Defendants, including Alexander Spears of Lorillard, Alan Rodgman of RJR, and Thomas Osdene of Philip Morris. Spears made several site visits to Huber's laboratory and reviewed his progress reports. Spears admitted that the research conducted by Huber concluded that tobacco smoke caused changes in the respiratory tracts of the animals consistent with chronic obstructive lung disease. Id. at 27:15-28:23, 29:4-13; Spears PD,Texas v. American Tobacco, 7/24/97, 233:1-238:12, 239:8-16; Spears PD, Cipollone v. Liggett, 7/26/84, 177:1-181:25.
685. On September 26, 1977, Philip Morris's Assistant General Counsel, Alexander Holtzman, sent a warning to the company President, Joseph Cullman, informing him that the results from the Harvard Project had led Huber to the conclusion that exposure of rats to cigarette smoke for six months causes emphysema and that a paper announcing those results would be delivered at the American College of Chest Physicians meeting in October, 1977. Holtzman indicated that attorney William Shinn of Shook, Hardy Bacon, under the direction of industry counsel at the Tobacco Institute, had been sent to modify Huber's views on the results of his research. The attorney did not succeed in altering Dr. Huber's interpretation of the results of his study. The Tobacco Institute prepared a press release to mitigate the damage in the event Huber's interpretation received any media attention. 1005053856-3856 (US 20197).
686. In 1980, Huber sought to continue his smoking and health research on animals at a time when he was making significant progress, but Defendants cut off funding for his research at Harvard and denied his request for funding after he moved later that year to the University of Kentucky. In a 1980 meeting, Defendants' attorneys told Huber that the reason funding for his research had been discontinued was because he was "getting too close to some things." The attorneys included Lee Stanford from Shook, Hardy Bacon, Ernest Pepples from B W, and Arthur Stevens from Lorillard. Huber PD, Texas v. American Tobacco, 9/20/97, 41:4-17, 43:21-44:15, 46:6-10, 46:12-24, 47:2-5, 73:12-74:18.
687. A number of exhibits were identified and introduced by plaintiff's and defendant's counsel during Dr. Huber's September 20, 1997 deposition in the State of Texas litigation. The documents shed light on Dr. Huber's relationship with Defendants and provide specific examples of information withheld from him by Defendants. HTT0010212-0214 (US 88807); HTT0010215-0216 (US 88808); HTT0010217-0219 (US 88809); HTT0010220-0222 (US 88810); HTT0010223-0225 (US 88811); 1335866-5870 (US 88812); HTT0010359-0360 (US 88815); HTT0010361-0363 (US 88816); HTT0010364-0368 (US 88817); 1000037069-7069 (US 88818); 501009723-9727 (US 88819); 01421596-1600 (US 88820); 03540193-0194 (US 88821); 01346204-6208 (US 88822); HTT0010392-0404 (US 88823); 504822923-2923 (US 88824); 504912643-2713 (US 88825); HTT0010502-0503 (US 88826); 0000130803-0803 (US 88827); 01370915-0915 (US 88828); HTT0010508-0510 (US 88829); HTT0010511-0513 (US 88830); HTT0010514-0516 (US 88831); HTT0010517-0531 (US 88832); HTT0010532-0534 (US 88833).
688. When Huber was subpoenaed by the State of Texas to testify in its case against the Defendants in 1997, lawyers for Defendants, including Robert McDermott at Jones Day and Lee Stanford at Shook, Hardy Bacon, contacted him and urged him "to keep the faith, to hold the line." Huber PD, Texas v. American Tobacco, 9/20/97, 99:21-100:2, 100:4-8. The attorneys implied to Huber that he did not "fully appreciate the full weight of Shook, Hardy Bacon and Jones Day" representatives of the tobacco industry. The calls caused Huber to fear for the safety and financial security of his family. Id. at 101:4-8, 10-21. Huber perceived a clear message: Defendants wanted to keep him silent.Id. at 102:3-17.
689. After the conclusion of his Texas case deposition, Defendants obtained an order sealing the transcript to keep Dr. Huber's testimony from public view and vigorously opposed efforts by litigants to obtain the transcript. Those efforts continued in this case, before this Court and in the Eastern District of Texas. Defendants succeeded in keeping the transcript sealed for almost seven years, but ultimately, the United States obtained an order from the Eastern District of Texas in 2004, unsealing the transcript, which is cited at length, supra. In re United States' Motion to Modify Sealing Orders, 5:03-MC-2 (E.D.Tex. June 18, 2003), Order of June 8, 2004.
690. Scientists working for Defendants also recognized the validity of research that Dr. Oscar Auerbach conducted with smoking beagles in the 1960s and early 1970s.
691. Principal Philip Morris scientist Raymond Fagan sent a memorandum dated February 25, 1970 to Helmut Wakeham, then Philip Morris's Research Director, on "Auerbach's Smoking Beagles" that described his visit to Auerbach's laboratory to observe the smoking dogs and tissue slides. Fagan observed:
I would say that the experiment is a crude one but effective in that carcinoma in dogs has been produced. . . . The crux of the situation is whether there is general agreement by qualified pathologists that carcinoma . . . has indeed been produced. And even if the cancer-production is invalidated the obvious emphysema produced cannot be denied.
1000837391-7392 at 7392 (US 20109).
692. On April 3, 1970, a company researcher of Gallaher Ltd. (American Tobacco Company's British-based sister company) wrote his managing director a confidential memo titled "Auerbach/Hammond Beagle Experiment" describing Auerbach's research as "undoubtedly a significant step forward" and noting: "[W]e believe that the Auerbach work proves beyond reasonable doubt that fresh whole cigarette smoke is carcinogenic to dog lungs and therefore it is highly likely that it is carcinogenic to human lungs." The research manager continued, "[t]he results of the research would appear to us to remove the controversy regarding the causation of the majority of human lung cancer," and "[t]o sum up, we are of the opinion that Auerbach's work proves beyond all reasonable doubt the causation of lung cancer by smoke." 321993992-3995 at 3992, 3993, 3994 (US 21688).
693. After a review of a presentation before the Tobacco Working Group, Lorillard's Alexander Spears admitted that "[t]he slides (shown by Auerbach) represented obvious lung pathology with increased cellular proliferation with smoke exposure." Spears PD, Cipollone v. Liggett, 7/26/84, 190:1-191:25.
694. A July 21, 1970 letter from B W outside counsel Shook, Hardy, Ottman, Mitchell Bacon to B W General Counsel Debaun Bryant, reveals that B W was concerned that statements of B W and BAT employees, "which appear to demonstrate a belief on the part of company personnel that cigarette smoking has been established as a general health hazard or a cause of some particular disease or diseases," would expose B W and BAT to smoking and health litigation. As examples, the letter discusses statements memorialized in the minutes of a conference at Kronberg, Germany, held from June 2 through 6, 1969 that was attended by both BAT and B W researchers. It was David Hardy's opinion that such statements "constitute a real threat to the continued successful defense of smoking and health litigation." The statements which generated concern included, but were not limited to:
There is a possibility that the experiments taking place at R. D. E., Southampton, with the membrane of the chicken embryo, might be showing genuine carcinogenic effects in days; and
The conclusion of the Conference was that at the present time the Industry had to recognize the possibility of distinct adverse health reactions to smoke aerosol: (a) Lung Cancer (b) Emphysema and Bronchitis. . . .
The letter also discusses additional concern stemming from the existence of a "'BAT/B W Cost Risk Pooling Agreement' executed in July 1969." 681805313-5319 at 5313, 5314, 5316 (US 30935).
695. Defendants also reviewed outside research that confirmed that smoke constituents were carcinogenic. A February 14, 1973 research report distributed to Defendants and their outside law firms linked smoking to cancer. The report, titled "Cigarette Smoke Condensate Preparation and Dermal Application to Mice," was prepared by Hazelton Laboratories and submitted to American, B W, Liggett, Lorillard, Philip Morris, RJR, and the law firm of Covington Burling. It reported that "97 of the 100 mice developed gross lesions in the skin in the area of dermal applications of benzo(a)pyrene." Examination indicated that these were squamous cell carcinomas. 501547434-7448 at 7444 (US 20682).
696. On January 7, 1969, Wakeham informed his superiors at Philip Morris that an abstract of a paper prepared by a researcher receiving CTR funding stated: "scientific findings suggest that inhalation of fresh cigarette smoke may enhance carcinogenesis in mice." 682011667-1671 at 1668 (US 21021).
697. In 1974, David Hardy of Shook, Hardy Bacon advised BATCo against admitting to the public what its scientists knew internally — that smoking causes disease. At the time, BATCo was considering placing a warning on cigarette packages sold in England — with no government attribution — that stated that smoking "causes lung cancer, bronchitis, heart disease." In a letter addressed to BATCo, Hardy advised that this admission of fact would impede the defense of smoking and health litigation in the United States. He wrote:
The proposed new warning removes the attribution of the warning to "H.M. Government," and instead appears to be a voluntary and direct admission by the cigarette manufacturer that the cigarettes contained in the package cause "lung cancer, bronchitis, heart disease." A wholly owned subsidiary of the manufacturer would, in our opinion, be adversely and prejudicially effected by such a voluntary warning even though it is a separate entity.
* * *
Once the fact and content of the warning got before a jury in the United States in a case involving the subsidiary, the defense of "no proof of causation" would be lost for all practical purposes. Such a result would indeed be unfortunate in view of the fact that in every instance where the matter has been explored in our Courts through expert testimony and otherwise, the cigarette manufacturer has prevailed.
110318156-8157 at 8156, 8157 (US 34974).
698. Similarly, a January 1, 1976 letter from B W Vice President and General Counsel, Ernest Pepples, to BATCo General Counsel, H.A. Morini, discusses B W's concern that voluntary consent by BAT to placing additives under the Tobacco Medicine Act would prejudice B W, because it could attribute to B W knowledge of specific hazards, which would badly weaken B W's litigation position. MNATPRIV00023457 (US 86869).
699. In 1980, in a confidential memo analyzing BAT public positions and their impact on B W's stance in litigation, BATCo internally admitted: "It is simply incorrect to say, 'There is still no scientific proof that smoking causes ill-health.'" 680050983-1001 at 0998 (US 20981).
700. Philip Morris scientist James Charles (who would later serve as the company's Vice President of Research) sent a February 23, 1982 memorandum to department head Thomas Osdene, responding to the 1982 Surgeon General's Report on Smoking and Health: "Cigarette smoke is biologically active" and "cigarette smoke condensate applied to the backs of mice causes tumors." He listed nine facts relating to the biological activity of cigarette smoke and told Osdene "you may shred this document . . . or use [it] in any way you see fit." 1003171563-1567 at 1564, 1566 (emphasis in original) (US 26137).
701. On May 4, 1982, a BATCo consultant, Francis Roe, wrote to BAT and explained why he believed the industry position on causation to be unsupported, noting that "[i]t is not really true, as the American Tobacco industry would like to believe, that there is a raging worldwide controversy about the causal link between smoking and certain disease." 100432193-2203 at 2194 (US 20182).
702. RJR's recognition of the validity of epidemiological and scientific studies led Anthony V. Colucci, Director of the company's Scientific Litigation Support Division, to write to attorney James E. Young of Jones, Day, Reavis Pogue to push the "mechanistic argument" of causation. In a 1986 memorandum, Colucci explicitly admitted: "that cigarettes are a risk factor for human lung cancer is an irrefutable fact." 507910855-0856 at 0855 (US 20803).
703. By 1980, Lorillard was aware that every major medical and scientific group in America that had studied the question had concluded that smoking causes disease. The company was equally aware that the only scientific studies to disagree with that conclusion were performed or funded by the tobacco industry. Spears PD, Texas v. American Tobacco, 7/24/97, 58:3-60:12.
704. The testimony of two high-level Philip Morris scientists fully corroborates the documentary evidence cited above that Defendants were totally aware of and convinced that smoking caused disease. First, former Philip Morris scientist Dr. William Farone, who worked at Philip Morris for 18 years and was impressive and credible as both a fact and expert witness, when asked what the view was among Philip Morris scientists on the question of whether smoking cigarettes is a cause of lung cancer and other diseases, responded:
There was widespread acceptance that smoking caused disease. I never talked with a scientist at Philip Morris who said that smoking doesn't cause disease.
When asked what the basis was for this understanding, he stated:
The compelling epidemiology such as that recounted in the Surgeon's General's reports, and our knowledge about the chemicals that were created by cigarettes and what was delivered to the smoker, hundreds of times per day on average.
Dr. Farone was also asked whether any of these executives in his discussions with them challenged the validity of the scientific evidence that smoking causes disease, and answered:
No. Their comments generally focused on how the company could or should respond, not to whether the scientific evidence was valid. Remember, a main reason why they hired me in 1976 was to help develop a less hazardous cigarette. It seemed to me at the time I was hired, and certainly was the case during my entire time there, that hiring me for that job was itself implicit recognition that the cigarettes that were out there being sold were causing disease.
Farone WD, 66:11-18, 68:22-69:10.
705. Second, Dr. Jerry Whidby, a former Philip Morris scientist who continues to appear as a fact and expert witness for the company and was paid $2800 per day by Philip Morris for his testimony in this case, responded to questions from the Court on the same subject:
THE COURT: And you were asked in this question: "How long have you recognized that smoking was dangerous and caused cancer, emphysema and other disease?"
And am I correct that you answered: "Since years before I went to work for Philip Morris."
So the answer would be, I gather, that for years before 1972, you recognized that smoking caused cancer, emphysema and other disease, is that correct?
THE WITNESS: Yes, that is correct. When I was in high school and grammar school, we talked about it in school.
THE COURT: And the next question was: "Have you ever doubted that smoking was dangerous and caused cancer, emphysema and other diseases?"
And you answered: "No, I have never doubted that." Is that correct?
THE WITNESS: That's what I answered, yes.
THE COURT: And were you aware from 1972 for at least 20 years, more than 20 years that you were working at Philip Morris, that Philip Morris was taking the public position that it was an open question as to whether smoking was dangerous and caused cancer, emphysema and other diseases?
THE WITNESS: I was aware of some of those statements, not all the statements, no.
THE COURT: . . . but did you not also testify in your direct that that was the common knowledge amongst your scientific colleagues at Philip Morris, that smoking was dangerous and caused cancer, emphysema and other diseases?
THE WITNESS: People I worked around who shared their beliefs with me, yes, that's what we thought. We were there to make the cigarette better.
Whidby TT, 2/22/05, 14112:6-14113:11.
c. Despite Their Internal Knowledge, Defendants Continued, From 1964 Onward, to Falsely Deny and Distort the Serious Health Effects of Smoking
706. Defendants responded to the 1964 Surgeon General's Report, which reflected the scientific consensus that smoking causes lung cancer with a campaign of proactive and reactive responses to scientific evidence that was designed to mislead the public about the health consequences of smoking. Defendants' goal was to create and maintain the smoking habit so as to enhance corporate profits.
707. In November 1967, at the direction of outside lawyers David Hardy of Shook, Hardy Bacon, and Ed Jacobs of Cabell, Medinger, Forsyth Decker, the Tiderock Corporation, the Tobacco Institute's public relations firm, prepared an action plan titled "The Cigarette Controversy." The action plan proposed to influence public opinion by creating specific initiatives to re-open the "open question" cigarette controversy. The program called for the creation of a position paper for intra-industry use as well as one for distribution to the media and public. The plan included targeted categories for mailings such as the medical profession, scientists, communicators (press, radio, television), educators, top public figures, and 10,000 top corporate presidents. It also detailed the publication of magazine articles. 1005109086-9106 (US 20211); TIMN0070816-0821 (US 77048); 502644592-4616 (US 20703).
708. In 1968, the Tobacco Institute published a pamphlet titled "The Cigarette Controversy: An Examination of the Facts by the Tobacco Institute — The Tobacco Industry's Contribution to Health Research." It declared:
In order to help advance scientific understanding of the causes, as well as the means of preventing and controlling disease, the American tobacco industry has contributed millions of dollars for independent research on smoking and health. During the past thirteen years, the industry has supported over 300 independent health studies through the industry's Council for Tobacco Research — U.S.A. Do cigarettes cause disease? In spite of all the debate — in spite of all of the research — that question is still unanswered. The industry will continue to seek the truth in the continuing cigarette controversy.
TINY0006498-6601 at 6534-6536 (US 87056); TIMN0104765-4868 at 4802-4803 (US 21613).
709. An April 23, 1968 publication of The Cigarette Controversy re-stated and re-emphasized Defendants' views:
Q: Has any important new evidence against cigarettes been reported in recent years?
A: No. Cigarettes today are branded guilty on virtually the same kind of evidence that was considered insufficient only a few years ago.
* * *
Q: Is smoking a health hazard?
A: That question is still an open one.
* * *
At that time [the early 1950s], most scientists considered the findings of these studies insufficient to prove a case against smoking. Since then, many other studies have been done. But there is still no proof that cigarette smoking is a cause of lung cancer — or any other disease.
502644592-4616 at 4595, 4596 (US 20703).
710. In a 1969 press release titled "American Tobacco Refutes Anticigarette Charges," American announced it was distributing another version of "The Cigarette Controversy." The booklet purported to review research done over the prior fifteen years and concluded that, in the absence of medical evidence, "the question is still an open one." It was mailed to more than 140,000 stockholders of American. TLT0962304-2309 at 2304 (US 88668).
711. This updated version presented "facts" explaining that there was "controversy" surrounding the science of smoking and health that must be answered by further scientific research and public discussion. The pamphlet was reviewed by CTR's Scientific Director Robert Hockett prior to publication. According to a letter from David Hardy to Hockett, this Tobacco Institute booklet was written to explain to the public the "reasons why representatives of the Cigarette Industry contend that the case against cigarettes has not been proved." Hardy explained that "the Tobacco Institute has felt it desirable to have some readable document or pamphlet to give them which spells out some of the unanswered questions." 1005152849-2896 (US 20226); HK0108004-8004 (US 21171).
712. In 1971, the Tobacco Institute revised and republished another edition of "The Cigarette Controversy — eight questions and answers." It was distributed by direct mail to physicians, librarians, newspaper and magazine editors, Members of Congress and their top aides, members of public relations groups, medical school faculties, leading tobacco growers and executives of industry supplier firms, other United States business leaders, college and university presidents and department heads, science writers, and business and financial writers and securities analysts. Copies were also mailed to a large list of ministers. The mailing went to nearly 350,000 persons. It was sent to over 300 radio and television station managers together with a sixty second announcement. TIMN300233-0257 (US 21675); 690014815-4838 (US 21041); TIMN0080470-0477 (US 21716); 03768320-8337 (US 20064).
713. In 1971, the Tobacco Institute published a shorter summary of the 1970 "Cigarette Controversy" pamphlet titled "Smoking/Health An Age-Old Controversy." This leaflet briefly stated Defendants' opinions on the questions of causation and the validity of the scientific research conducted to date. A November 9, 1973 Tobacco Institute memorandum described "Smoking/Health An Age-Old Controversy" as a "good synopsis of the [1970] pamphlet" and a "shorter version of the industry stand on the cigarette controversy" that should "be put to good use." TIMN0121524-1527 (US 21710); TIMN0395428-5429 at 5429 (US 21365).
714. In November 1971, RJR requested and received from the Tobacco Institute 1,000 copies of the pamphlet "Smoking/Health An Age Old Controversy" for use in responding to inquiries from children about smoking and health. In February 1973, 500 more copies were requested, again for responding to school children. TIMN0121524-1527 (US 21710); 500005148-5148 (US 21323); 500013882-3882 (US 20611).
715. After the publication of "The Cigarette Controversy," the Tobacco Institute published a series of advertisements in various magazines, inviting readers to request copies of the pamphlet. For example, on November 6, 1972, the Tobacco Institute ran an advertisement in The Nation that stated "YOU HAVE A RIGHT TO A FULL DISCUSSION ABOUT smoking and health. The cigarette question is still a question. Send for free booklet, 'The Cigarette Controversy.'" TIMN0124460-4460 (US 21333).
716. The Tobacco Institute published a 1974 version of "The Cigarette Controversy" and continued to argue that objective research was needed to explore questions about smoking and health. The Cigarette Controversy stated that a causal relationship between smokers and illness or death had not been established and that such claims were unproven. Over one million copies of the Cigarette Controversy, which was described as "the basic guide for other forms of communication," were in print by the end of the year. TIMN0017604-7612 (US 23020); TIMN217628-7639 at 7634 (US 21263).
717. In an address delivered on October 3, 1967, Paul D. Smith, Vice President and General Counsel of Philip Morris, stated: "The truth of the matter is this: No one knows whether cigarette smoking causes any human disease or in any way impairs human health." Smith also claimed that "[n]obody has yet been able to find any ingredient as found in tobacco or smoke that causes human disease." He also criticized the Public Health Service's accusations against tobacco and claimed that the public research community was biased due to its receipt of federal funds. 2015068601-8612 at 8603, 8611 (US 20337); 2010035814-5818 (US 21603).
718. In 1968, a sportswriter named Stanley Frank, who worked for Hill Knowlton was paid $500 by the Tobacco Institute, to write an article titled "[T]o smoke or not to smoke — that is still the question," which appeared in the "Science" section of True Magazine. In the article, Frank stated that he had reviewed the evidence on smoking and disease and found it inconclusive and contradictory. See, III(D)(3)(¶ 167-168). TIMN462375-2380 (US 21660); 690012994-2994 (US 54322).
719. The Tobacco Institute ordered millions of reprints of the Stanley Frank article for mass mailings. In April 1968, Lorillard, RJR, Philip Morris, and B W purchased reprints of the article for further mailings. 690012994-2994 (US 54322); TIMN0070307-0307 (US 21571); TIMN0070324-0335 (US 21592); TIMN0071398-1401 (US 21301).
720. In an internal memorandum outlining the Tobacco Institute's involvement with the Frank article, William Kloepfer, Vice President of Public Relations at the Tobacco Institute, noted with approval that the Tobacco Institute's involvement in another article, "the Barron's editorial," had not been uncovered:
It should be noted that our earlier project, the advertisement of the Barron's editorial, escaped noticeable rebuttal. The editorial will be remembered, however, as an independent criticism of government activity, with no reasonable suspicion possible that cigarette interests were responsible for its preparation.
TIMN0071398-1401 (US 21301); 1005112459-2461 at 2460 (US 20213).
721. All these activities, such as the Cigarette Controversy series, the Frank article, and public statements of the industry were undertaken as part of a concerted, wide-ranging public relations strategy on the part of Defendants to mislead the public. A 1968 Tobacco Institute "Tobacco and Health Research Procedural Memo" lays out the basic strategy:
The most important type of story is that which casts doubt on the cause and effect theory of disease and smoking. . . . [T]he headline should strongly call out the point — Controversy! Contradiction! Other factors! Unknowns!
TIMN0071488-1491 at 1489 (US 21302).
722. In 1969, the Tobacco Institute prepared an article titled "Centuries-old Smoking/Health Controversy Continues," which asserted that the causes of cancer and heart disease were still unknown. The article stated that evidence concerning smoking and cardiovascular disease was, if anything, more confused than it was in 1964 and did not permit the conclusion that there was a causal relationship between smoking and cardiovascular disease. TIMN395434-5437 (US 21664).
723. Claims that smoking was only statistically linked to disease persisted. A February 3, 1969 CTR press release explained:
The scientist who has been associated with more research in tobacco and heath than any other person [Clarence Cook Little, Executive Director of CTR] declared today that there is no demonstrated causal relationship between smoking and any disease. The gaps in knowledge are so great that those who dogmatically assert otherwise — whether they state that there is or is not such a causal relationship — are premature in judgment. If anything, the pure biological evidence is pointing away from, not toward, the causal hypothesis. . . . Statistical associations between smoking and lung cancer, based on study of those two factors alone, are not proof of causal relationship in the opinion of most epidemiologists.
670307882-7891 at 7882 (US 21867).
724. On February 6, 1969, the general counsels for Philip Morris, RJR, B W, Lorillard, and Liggett, all of whom were members of the Committee of Counsel, approved publication of the foregoing press release under the headline: "How much is known about smoking and health." The ad was run in major newspapers around the country, advertising journals, and medical journals, including papers in Richmond, Raleigh, Knoxville, Nashville, Washington, New York, Louisville, Lexington and Columbia; in the eastern edition of the Wall Street Journal, Advertising Age, Broadcasting, Editor and Publisher, Southern Advertising and Publishing, National Association of Retail Druggist Journal, Food Topics, VEND, Retail Tobacconist, Southern Tobacco Journal, Tobacco, Tobacco Distributor and Confectionary Guide, Tobacco Jobber, Tobacco Leaf, Tobacco Record, Tobacco Reporter, US Tobacco Journal, Medical World News, Medical Economics, and US Medicine. 1005132848-2849 (US 20222); 1005153098-3099 (US 20227); TIMN0081698-1698 (US 21309); TIMN0000560-0561 (US 21874); TIMN0081695-1696 (US 21308).
725. Defendants realized that they needed to change public opinion in order to sustain the viability of the tobacco industry given the fact that there was little, if any, evidence to support their position. In an August 10, 1967 RJR memorandum from J.S. Dowdell to C.B. Wade, Dowdell acknowledged:
Despite the fact that the industry has very little, if any, positive evidence upon which to base the aggressive campaign necessary at this late date to materially change public opinion, public attitudes can be changed. At least to the extent that the majority who now believe smoking is a proven cause of lung cancer could become doubtful; and, others who are now skeptical could be convinced that before the industry is further penalized more evidence is required. However, the unfavorable opinion on the hazards of smoking will remain definitely high, and will not shift in a favorable direction, until positive action is taken by the industry to counter the anti-smoking propaganda and publicity.
Dowdell advocated that the Tobacco Institute Executive Committee approve the 1967 Public Relations Program and begin an aggressive public relations campaign. 500006192-6194 at 6193 (US 47761) (emphasis in original).
726. At the same time, an internal B W document titled "Smoking and Health Proposal" explained: "Doubt is our product since it is the best means of competing with the 'body of fact' that exists in the mind of the general public. It is also a means of establishing a controversy." 690010951-0959 at 0954 (US 21040).
727. In a 1969 B W document prepared for public dissemination titled "How Eminent Men of Medicine and Science Challenged the Smoking-and-Health Theory During Recent Hearings in the U.S. Congress," B W stated that "the question of smoking and health remains an open, not a closed, issue." B W also asserted that "[t]he cause of cancer in humans, including the cause of cancer of the lung, is unknown" and that "[t]he concept that cigarette smoking is the cause of the increase in lung cancer and emphysema is a colossal blunder." 650332832-2839 at 2833, 2835-2836 (US 20947).
728. On November 11, 1969, the Tobacco Institute published an advertisement titled "All Advertising Should be Truthful," containing a reprint of an Advertising Age article titled "The Truth Seems a Little Twisted." The article attacked the American Cancer Society and the American Heart Association commercials informing the public about the risks of cigarette smoking. The article stated that the commercials were untruthful and misleading and that "wild" unsupported statements should not be permitted on the air. The Tobacco Institute ran these advertisements in newspapers in New York, Boston, Philadelphia, Washington, Chicago, Los Angeles and San Francisco and in issues of Time, Newsweek, and the Wall Street Journal. 1005132842-2842 (US 21667); 1005132840-2840 (US 21668); 1005132841-2841 (US 21669).
729. In February 1970, the Tobacco Institute issued an announcement titled "The Tobacco Institute believes the American public is entitled to complete, authenticated information about cigarette smoking and health," with the subtitle "The American Cancer Society does not seem to agree." This announcement challenged information issued by the American Cancer Society concerning a research project published by Dr. Oscar Auerbach titled "The Effects of Cigarette Smoking Upon Dogs." For a complete discussion of Defendants' efforts with respect to the Auerbach Studies, see Section III(F)(3) and Section V(A)(5)(b)(¶ 690-693), supra. TIMN0081949-1949 (US 21686).
730. On April 30, 1970, the Tobacco Institute sent a press release that falsely claimed that the American Cancer Society had refused to release experimental data underlying the Auerbach/Hammond "smoking beagles" study, which discovered bronchial carcinoma in beagle dogs forced to smoke tobacco. T076378-6379 (US 21237).
731. In March 1970, the Tobacco Institute approved television spots which said:
Today, we in this industry support more impartial research on the vital question of tobacco and health than any agency of the Federal Government, and more than all the voluntary agencies combined. We have great confidence that the findings of this research will lead the way in providing fair and accurate information regarding cigarette smoking.
* * *
Do Smokers have common sense? We in the tobacco industry believe they do, and that millions of reasonable and responsible men and women who smoke will not be misled by the campaign of fear that is conducted against smoking. We believe that these emotional charges are no substitute for objective facts gathered from research.
2010008819-8822 at 8820 (US 20300).
732. On April 22, 1970, a CTR press release titled "Studies Raise Questions About Smoking as Health Hazard" quoted Clarence Cook Little as stating: "The deficiencies of the tobacco causation hypothesis and the need of much more research are becoming clearer to increasing numbers of research scientists." 500015901-5905 at 5902 (US 47778).
733. On September 7, 1970, Dr. Sheldon Sommers, Scientific Director of CTR and Chairman of the SAB, asserted in an article titled "Smoking and Health: Many Unanswered Questions": "I do not believe it has been scientifically established that cigarette smoking causes human disease," and, "The Council for Tobacco Research is deeply committed to the search for answers." ZN16062-6065 at 6063, 6065 (US 21161).
734. In December 1970, the Tobacco Institute issued yet another statement, published as an advertisement in major American newspapers, titled "The Question about Smoking and Health Is Still a Question":
[A] major portion of this scientific inquiry has been financed by the people who know the most about cigarettes and have a great desire to learn the truth . . . the tobacco industry. And the industry has committed itself to this task in the most objective and scientific way possible . . . 1115 reports in all. Through this work much valuable data have been produced about lung cancer, heart disease, chronic respiratory ailments and other diseases. However, there's still a lot more to be learned. . . . There are eminent scientists who believe that the question of smoking and health is an open one and that research in this area must go forward. From the beginning, the tobacco industry has believed that the American people deserve objective, scientific answers. With this same credo in mind, the tobacco industry stands ready today to make new commitments for additional valid scientific research that offers to shed light on new facets of smoking and health.
The "eminent scientists" in such pronouncements were never identified. Defendants widely distributed reprints of the advertisement and provided it to every member of Congress with a personal letter from Horace Kornegay, President of the Tobacco Institute. TIMN0081352-1352 (US 21305); 2010008873-8873 (US 22010); 1005132832-2832 (US 21666); 2010008878-8879 (US 36514); 500004807-4809 at 4807 (US 20608); Brandt WD, 128:14-129:11.
735. Defendants' executives also continued to insist in the 1970s, as they had in the 1950s, that "if and when" any harmful elements were identified in cigarettes, they would take necessary steps to remove them. For example, on January 3, 1971, Joseph Cullman III, President of Philip Morris, explained in a "Face the Nation" television interview:
[T]his industry can face the future with confidence because when, as, and if any ingredient in cigarette smoke is identified as being injurious to human health, we are confident that we can eliminate that ingredient. . . . We do not believe that cigarettes are hazardous; we don't accept that. But we are working with the government, working very hard with the government, on various methods of ascertaining whether or not cigarettes can be found to be hazardous. . . . I believe they have not been proved to be unsafe.
1002605545-5564 at 5550, 5560 (US 35622).
736. During the same televised interview, Cullman falsely denied that cigarettes posed a hazard to pregnant women or their infants: "[I]t's true that babies born from women who smoke are smaller, but they are just as healthy as the babies born to women who do not smoke. Some women would prefer to have smaller babies." His statement contradicted the information Helmut Wakeham, Philip Morris's Vice President for Corporate Research and Development, had given him two years earlier. 1002605545-5564 at 5561-5562 (US 35622); 1000211305-1305 (US 20080).
737. In an effort to detract attention from smoking as a cause of disease, Defendants pointed to other possible causes. On January 3, 1971, a Tobacco Institute press release contained statements criticizing public health efforts, and suggesting to the public that not enough was being done to investigate incidents of lung cancer in nonsmokers. The press release alleged that "thousands of lung cancer victims who have never smoked cigarettes [are] being neglected by expensive propagation of myths instead of scientific knowledge." It also quoted Tobacco Institute President Horace Kornegay: "Any organization in a position to apply resources in the search for those keys — and which fails to do so — will continue to be guilty of cruel neglect of those whom it pretends to serve." Kornegay told the public that the Defendants planned to provide more than four million dollars in 1971 for independent scientific research. 2001052715-2718 at 2716, 2718 (US 21719); TIMN0123716-3720 at 3717 (US 21328).
738. A May 25, 1971 Tobacco Institute press release publicly denied any links between smoking and health. In this press release, Defendants again represented that "many eminent scientists" (unidentified) believe that "the question of smoking and health is still very much a question." TIMN0131768-3769 at 3769 (US 21337).
739. In a press release dated November 15, 1971, the Tobacco Institute challenged the claim that smoking is harmful to pregnant women. Horace Kornegay, President of the Tobacco Institute, was quoted: "We just don't know, and only further research on smoking and all the other possible factors that may affect pregnancy will answer the question." TIMN0100469-0470 at 0469, 0470 (US 21687).
740. The Tobacco Institute prepared an entire "backgrounder" on smoking and pregnancy which was sent to newspaper editorial writers throughout the country. A TI press release discussing the backgrounder claimed that ". . . opponents of cigarettes are endeavoring to scare pregnant women with such statements as that of the Surgeon General that 'we are losing babies because of mothers' smoking.'" TIMN0100469-0470 at 0469 (US 21687).
741. In the January 24, 1972 issue of the Wall Street Journal, Philip Morris's Senior Vice President James Bowling was quoted as stating: "[i]f our product is harmful . . . we'll stop making it. We now know enough that we can take anything out of our product, but we don't know what ingredients to take out." Bowling further stated that "[w]e don't know if smoking is harmful to health, and we think somebody ought to find out." 500324162-4164 at 4163 (US 20627).
742. On February 1, 1972, the Tobacco Institute issued a press release declaring that
[t]he cigarette industry is as vitally concerned or more so than any other group in determining whether cigarette smoking causes human disease, whether there is some ingredient found in cigarette smoke that can be shown to be responsible, and if so, what it is
and that
despite this effort [the commitment of $40 million by the tobacco industry for smoking and health research] the answers to the critical questions about smoking and health are still unknown.
TIMN0120596-0597 at 0597 (US 21321).
743. Defendants issued scathing comments about official reports demonstrating the adverse health effects of smoking. For example, a February 26, 1972 Tobacco Institute press release asserted that the 1972 Surgeon General's Report on the Health Consequences of Smoking "insults the scientific community" and that the report was "another example of 'press conference science' — an absolute masterpiece of bureaucratic obfuscation." The press release further asserted that "the number one health problem is not cigarette smoking, but is the extent to which public health officials may knowingly mislead the American public." TIMN0120602-0603 at 0602 (US 21322).
744. The reasoning behind the Tobacco Institute's public relations campaign based on the open question controversy is explained in a 1972 Tobacco Institute internal document, which stated:
In the cigarette controversy, the public — especially those who are present and potential supporters (e.g. tobacco state congressmen and heavy smokers) — must perceive, understand, and believe in evidence to sustain their opinions that smoking may not be the causal factor.
87657703-7706 at 7705 (US 21098).
745. A May 1, 1972 memo written by Fred Panzer, Vice President of the Tobacco Institute, to Horace Kornegay described the strategy employed by Defendants:
For nearly twenty years, this industry has employed a single strategy to defend itself on three major fronts — litigation, politics, and public opinion.
While the strategy was brilliantly conceived and executed over the years helping us win important battles, it is only fair to say that it is not — nor was it intended to be — a vehicle for victory. On the contrary, it has always been a holding strategy consisting of
— creating doubt about the health charge without actually denying it
— advocating the public's right to smoke, without actually urging them to take up the practice
— encouraging objective scientific research as the only way to resolve the question of health hazard.
On the litigation front for which the strategy was designed, it has been successful. While we have not lost a liability case, this is not because juries have rejected the anti-smoking arguments.
On the political front, the strategy has helped make possible an orderly retreat. But it is fair to say that it has not stemmed the pressure for new legislation, despite the major concessions we have made.
On the public opinion front, however, our situation has deteriorated and will continue to worsen. This erosion will have an adverse effect on the other fronts, because here is where the beliefs, attitudes and actions of judges, juries, elected officials and government employees are formed.
Panzer, like other industry executives, noted that the open question strategy was not likely to be successful much longer. Still, he believed the traditional defense was viable in some respects:
As things stand we supply them [the public] with too little in the way of ready-made credible alternatives.
* * *
Two such credible alternatives exist:
1) The Constitutional Hypothesis i.e. people who smoke tend to differ importantly from people who do not, in their heredity, in constitutional makeup, in patterns of life, and in the pressure under which they live.
2) The Multi-factorial Hypothesis i.e. as science advances, more and more factors come under suspicion as contributing to the illnesses for which smoking is blamed-air pollution, viruses, food additives, occupational hazards and stresses.
Our 1970 public opinion survey showed that a majority (52%) believed that cigarettes are only one of the many causes of smokers having more illnesses. It also showed that half of the people who believed that smokers have more illnesses than nonsmokers accepted the constitutional hypothesis as the explanation.
TIMN0077551-7554 at 7551-7553 (US 63585) (emphasis in original).
746. Following this strategy, on January 14, 1975, the Tobacco Institute released another version of its booklet "The Cigarette Controversy." This announcement stated that:
If smoking does cause disease, why, after years of intensive research, has it not been shown how this occurs? And why has no ingredient as found in smoke been identified as the causal factor? These are among the unanswered questions set forth in a new publication of the Tobacco Institute, titled The Cigarette Controversy.
TIMN0120638-0639 at 0638 (US 21698) (emphasis in original).
747. Defendants continued to recognize and exploit the fact that their public relations campaign provided rationalizations for the smoker. Their use of public relations was calculated and precise, and internal research done on it demonstrated its efficacy. As B W stated in a November 29, 1976 memo titled "Cigarette Advertising History":
Good cigarette advertising in the past has given the average smoker a means of justification on the two dimensions typically used in anti-smoking arguments: [risk to health and immorality] . . . All good cigarette advertising has either directly addressed the anti-smoking arguments prevalent at the time or has created a strong, attractive image into which the besieged smoker could withdraw.
680086039-6044 at 6039, 6040 (US 20984).
748. On June 6, 1977, Addison Yeaman, B W's General Counsel, publically reaffirmed Defendants' promise to conduct meaningful research, as he explained in his remarks at Maxwell Associates' Biannual Tobacco Seminar that:
I am utterly secure in saying to you that the tobacco industry recognizes its responsibility and its duty and that it will continue its every effort and at whatever cost to find the answer to the question, "what part, if any, does tobacco play in human diseases."
CTRPUBLICSTMT001437-1445 at 1445 (US 21164).
749. In a document distributed by B W titled "Facts Every Tobacco Man Should Remember," which appeared in the October 27, 1977 edition of the United States Tobacco Journal, B W claimed that "[t]he case against tobacco is not closed . . . in a sense, the jury still isn't able to retire to consider the case because it doesn't have all the relevant facts." 544001284-1297 at 1285-1286 (US 20935).
750. The Tobacco Institute's public relations strategy focused its attention on disseminating Defendants' message to the public that there was no definite link between smoking and health and that, until answers to these questions were found, smokers should not fear that their health was endangered. Defendants' four-point platform was set out in a December 29, 1977 Tobacco Institute press release:
1. The question of smoking and health is still a question requiring scientific resolution.
2. Tobacco smoke does not imperil normal nonsmokers.
3. The tobacco farm program is an essential part of public policy.
4. The freedom of choice of our industry's customers must be preserved.
TIFL0522279-2280 at 2280 (US 21424).
751. In 1977, the Tobacco Institute published a pamphlet titled "Facts About the Smoking Controversy." The pamphlet claimed that the 1964 Surgeon General's Report "was essentially a 'study of numbers — a selective review of population studies which compared disease rates among smokers, ex-smokers and nonsmokers.'" It also stated: "Has the Surgeon General's report established that smoking causes cancer or other diseases? No." TIMN0055129-5135 at 5130 (US 21298).
752. Defendants aimed much of their public relations campaign at lung cancer and, as time went on, heart disease. In 1978, a Tobacco Institute pamphlet stated: "The flat assertion that smoking causes lung cancer and heart disease and that the case is proved is not supported by many of the world's leading scientists." TIMN319568-9604 at 9578 (US 62902).
753. On January 12, 1978, Ross Millhiser, President of Philip Morris, stated in a letter to the editor in the New York Times: "as for the lack of research on the 'harmful' effects of smoking, the fact is there is good reason to doubt the culpability of cigarette smoking in coronary heart disease." ATC2411308-1308 (US 21378).
754. In May 1978, the Tobacco Institute published a fifty-four page document titled "Fact or Fancy?" and sent it to broadcasters, editors, writers, and officers of women's associations and organizations "because the tobacco and health controversy has increasingly focused on women and smoking." The document claimed to have been produced "to present more factual and balanced answers on the health question about which mature women need to know more." It presented the controversy argument that causality had yet to be proven in any of the diseases and conditions linked statistically with cigarette smoking. 03731785-1838 (US 21466); 04326897-6897 (US 21468); 04326898-6898 (US 21467); 04326900-6900 (US 21469); 04326901-6901 (US 21470).
755. Defendants also continued to insist publicly that there was no need to undertake research to develop "safer" cigarettes, since they asserted that the cigarettes then being sold were not harmful to health. In June 1978, William Dwyer, Vice President of the Tobacco Institute, explained in an article titled "Smoking: A Free Choice":
A question often asked of the tobacco industry is whether researchers are developing a "safe" cigarette. A variation of that question is whether low "tar" nicotine cigarettes are safer. The tobacco industry is convinced that no cigarette has been proved unsafe. Therefore, they regard any suggestion of a "safe" or "safer" cigarette as tortured logic. The reduced "tar" and nicotine cigarettes represent about 20 percent of sales and are in the marketplace because of consumer demand. That demand obviously reflects the personal preferences of smokers.
TIMN0074796-4800 at 4797 (US 21480).
756. In December 1978, the Tobacco Institute published "The Smoking Controversy: A Perspective." The publication stated that society was on the "brink of paranoia" regarding smoking; that "[n]o one really knows whether this personalized warfare against tens of millions of Americans will prevent a single case of lung cancer"; that "[n]o one really knows the root or causes of cancer"; and that the "wars" against disease that were being "waged by the government and voluntary health agencies" were "beyond the realm of science." TIMN0129593-9628 (US 21499); MNAT00224317-4354 (US 21223).
757. In 1979, the Tobacco Institute published a document titled "TOBACCO from seed to smoke amid controversy." It stated flatly that "it has not been established that smoking causes any human disease." 690142176-2180 at 2178 (US 21512).
758. One year prior to the release of the 1979 Surgeon General's Report on Smoking and Health, Defendants started planning their response to what they expected it to say. That response included establishing a task force to write and publish a rebuttal paper. Rather than have scientists evaluate the evidence or the Report's findings, once they were issued, the Tobacco Institute assigned a public relations staff member to research, write, and edit the rebuttal paper. Anne Duffin was given this responsibility, under the direction and guidance of the law firm Shook, Hardy Bacon. Other public relations staff members re-read and edited chapters of the document as it was drafted. TIMN0073990-3992 at 3990 (US 21525).
759. On January 10, 1979, one day prior to the release of the 1979 Report of the Surgeon General on Smoking Health, the Tobacco Institute published a document titled "Smoking and Health 1964-1979: The Continuing Controversy." The Tobacco Institute prepared it for distribution to the news media and tailored it to respond to the content of the 1979 Report. The Tobacco Institute had obtained three draft chapters of the Surgeon General's Report. The rebuttal document was 166 pages long and represented a major effort on the part of the tobacco industry to pre-empt the impact of the 1979 Surgeon General's Report. TIMN0084430-4594 (US 21534).
760. Peter Lee, a long time industry consultant, characterized the Tobacco Institute's 1979 document "The Continuing Controversy" (referred to as "TA73") as "misleading." He wrote that the Tobacco Institute's counter publication did not appear to understand the idea of medical causation:
Discussion of the role of other factors can be particularly misleading when no discussion is made of relative magnitudes of effects. For example, heavy smokers are observed to have 20 or more times the lung cancer rates of non-smokers. Sure, this does not prove smoking causes lung cancer, but what it does mean, and TA73 never considers this, is that for any other factor to explain this association, it must have at least as strong an association with lung cancer as the observed association for smoking (and be highly correlated with the smoking habit).
* * *
TA73 seems ready to accept evidence implicating factors other than smoking in the aetiology of smoking without requiring the same stringent standards of proof that it requires to accept evidence implicating smoking. This is blatantly unscientific.
100214029-4047 at 4046 (US 21515) (emphasis in original).
761. While he identified problems with the Tobacco Institute public relations document, Lee acknowledged that: "There is no doubt that [the Surgeon General's Report] is an impressive document." His memorandum dated February 9, 1979 also states: "The way in which the information was presented was on the whole sound, scientific and unemotive." He predicted that the Report would become "the Number One basic reference document for smoking and health researchers the world over." 100214029-4047 at 4030 (US 21515).
762. The day before the 1979 Report was released, Defendants held a press conference, distributed press kits, and arranged for several television appearances by Horace Kornegay, President of the Tobacco Institute. A January 25, 1979 Tobacco Institute document memorializes remarks made at a TI Executive Committee meeting where the goal of the TI approach to the 1979 Surgeon General's Report was explained. One of the goals was: ". . . to encourage the press and public officials to apply a skeptical, or at least questioning, attitude to the substance of the report, and its source." TIMN0073990-3992 at 3991-3992 (US 21525); TIFL0403308-3312 at 3308 (US 62631); TIMN0055304-5330 (US 62816).
763. Defendants' internal documents note that their public relations efforts received press coverage that equaled that received by the Report itself:
Most of us are aware that news coverage of the 1979 Surgeon General's Report achieved a balance, of sorts, with attention given to the Tobacco Institute's views both before and after the actual event.
TIMN0073993-4002 at 3994 (JD 011663) (emphasis in original).
764. On January 11, 1979, for example, the News and Observer of Raleigh, North Carolina, quoted the Tobacco Institute as stating that "'many scientists' are becoming concerned that the focus on cigarette smoking diverts attention from other suspected health hazards." TIMN0122721-2721 (US 21325).
765. On January 17, 1979, the Tobacco Institute continued its aggressive public relations effort and issued a press release stating that the tobacco industry had spent $75 million on research over twenty years to learn whether smoking is harmful, but that "the case against cigarettes is not satisfactorily demonstrated." TIMN0074006-4006 (US 87985).
766. Philip Morris's 1979 Annual Report similarly declared: "No conclusive clinical or medical proof of any cause-and-effect relationship between cigarette smoking and disease has yet been discovered." 2043819548-9607 at 9561 (US 20451*).
767. While the public relations campaign continued, Defendants promised their commitment to disinterested research. In 1981, for instance, the Tobacco Institute published a document titled "On Smoking — 21 questions and answers," written by the law firm Shook, Hardy Bacon, which stated:
The tobacco industry has committed more than $91 million for independent research on smoking and health questions. . . . The tobacco industry remains committed to advancing scientific inquiry into the gaps in knowledge in the smoking controversy.
TIEX0007587-8106 at 7589 (US 87061).
768. On December 31, 1981, the Tobacco Institute published a document titled "Tobacco Industry Research on Smoking and Health: A $104 Million Commitment" that again asserted: "questions of smoking and health are unresolved." 2046754709-4710 at 4710 (US 20474).
769. In 1982, the Tobacco Institute launched a national series of advertisements on behalf of Defendants that addressed smoking and health issues, environmental tobacco smoke ("ETS"), public smoking restrictions, and youth smoking. These ads asked readers to keep an open mind on tobacco issues and "[w]eigh both sides before [they] take sides." Readers were encouraged to request a free copy of the Tobacco Institute's booklet "Answers to the Most Asked Questions about Cigarettes." 03028799-8809 at 8801 (US 20053).
770. On February 18, 1982, "Smoking and Cancer — A Scientific Perspective" was published by the Tobacco Institute in anticipation of the release of the 1982 Surgeon General's Report on Smoking and Health. The timing of the release was based on the Tobacco Institute's "axiom that it is more effective to take the initiative in situations involving a prospective negative news event." The press release accompanying the 104-page Tobacco Institute document stated that scientific research had not been able to establish a causal link between smoking and cancer. Copies were provided to correspondents and to various Members of Congress. 2025431644-1748 (US 20417); TIMN0245529-5529 (US 21340); 03762472-2472 (US 20063); TIMN0245530-5532 (US 21341); TIMN0245292-5292 (US 21339); 03762460-2461 (US 20062).
771. A May 7, 1982 memorandum to RJR executives advised that the key point to be made in any discussion of the issue of smoking and health "is that it is a legitimate scientific controversy which continued unresolved." 502483421-3421 (US 20700).
772. In 1983, in anticipation of the 1983 Surgeon General's Report, "The Health Consequences of Smoking — Cardiovascular Disease," the Tobacco Institute published a document titled "Cigarette Smoking and Heart Disease." It stated that smoking was not an important risk factor for heart disease, and that "[w]hether cigarette smoking is causally related to heart disease is not scientifically established." The document was first distributed to Defendants, who were asked not to distribute the publication widely, but to use it for internal purposes only until the Report was released. Upon release, the Tobacco Institute distributed the document, as did the Defendants' European information clearinghouse, known as "INFOTAB" (discussed in detail at Section III(I)(6), supra). 2501112047-2098 at 2090, 2091 (US 20561); 2023274132-4133 (US 20386); 2501023645-3645 (US 20556).
773. Sheldon Sommers, Scientific Director of CTR, testified before Congress in 1983 that "cigarette smoking has not been scientifically established to be a cause of chronic diseases, such as cancer, cardiovascular disease, or emphysema." 503685073-5075 at 5073 (US 88734).
774. In 1984, RJR placed an ad in numerous newspapers, including The New York Times, titled "Smoking and health: Some facts you've never heard about." This ad contained the statement:
You hear a lot these days about reports that link smoking to certain diseases. This evidence has led many scientists and other people to conclude that smoking causes these diseases.
But there is significant evidence on the other side of this issue. It is regularly ignored by the critics of smoking. And you rarely hear about it in the public media. But, it has helped persuade many scientists that the case against smoking is far from closed.
No one wants to know the real answers more than RJR. That is why we are providing major funding for scientific research. The funds are given at arm's length to independent scientists who are free to publish whatever they find. We don't know where such research may lead. But this much we can promise: when we find the answers, you'll hear about it.
504100135-0136 at 0136 (US 50882).
775. In 1983, the Tobacco Institute published a pamphlet titled "Tobacco Industry Research on Smoking and Health: A $120 Million Commitment." This pamphlet stated:
Since the first questions were raised about smoking as a possible health factor, the tobacco industry has believed that the American people deserve objective, scientific answers. The industry has committed itself to this task.
2045377870-7876 at 7871 (US 20460).
776. In January 1984, an RJR press release declared:
After all of this study, there are many scientists who believe there is no laboratory or clinical proof that cigarette smoke does — or does not — cause disease. We believe that reasonable people who examine all the evidence concerning smoking and disease would agree this is an open scientific controversy, not a closed case.
504638054-8056 at 8056 (US 20733).
777. A month later, Edward Horrigan, Chairman of the Board at RJR, made the following comments as part of a panel discussion on the "Nightline" television program: (1) "It is not known whether cigarettes cause cancer"; (2) "Despite all the research to date, there has been no causal link established [between smoking and emphysema]"; and (3) "As a matter of fact, there are studies that while we are accused of being associated with heart disease, there have been studies conducted over 10 years that would say, again, that science is still puzzled over these forces." 502371212-1223 at 1216, 1217 (US 20699).
778. RJR placed an ad in daily newspapers in 1984 titled, "Can we have an open debate about smoking?" In this ad, RJR claimed that "[s]tudies which conclude that smoking causes disease have regularly ignored significant evidence to the contrary," and that those "scientific findings come from research completely independent of the tobacco industry." It also states that "reasonable people who analyze it [the evidence] may come to see the issue not as a closed case, but as an open controversy." 513943434-3434 (US 50268).
779. That same year, 1984, the Tobacco Institute published a document titled "Cigarette Smoking and Chronic Obstructive Lung Diseases: The Major Gaps in Knowledge." It declared that Defendants did not agree with the conclusion of the Surgeon General's Reports that cigarette smoking had been established as a cause of chronic bronchitis and further asserted that a causal relationship between smoking and either chronic bronchitis or emphysema had not been established scientifically. TI13062142-2156 (US 62409).
780. The Tobacco Institute published another report in 1984 titled "The Cigarette Controversy: Why More Research is Needed" as a formal statement of Defendants' position. It purported to review the testimony given at the 1982 and 1983 Congressional tobacco labeling hearings and stated:
Thirty nine scientists presented testimony against proposals in the bills. Their evidence was based on their own published research or their review of scientific literature.
Each of them in his or her own right is a recognized scientist, and most have reached eminence in their area of expertise.
* * *
The evidence presented by these men and women is summarized in the following pages. The scientists and their professional affiliations are listed in the Appendix. We publish this summary in the belief that the controversy about smoking must be resolved by scientific research and in the belief that informed discussion of the controversy is in the public interest.
* * *
Fifteen witnesses explained why they consider the hypothesis that cigarette smoking causes lung cancer to be unproven.
* * *
Witnesses also questioned the assertion that cigarette smoking causes emphysema in particular and chronic obstructive lung disease (COPD) in general.
The report failed to disclose that most of these scientific witnesses were tobacco industry consultants who were receiving funding from the lawyers' Special Account No. 4. TI12431636-1650 at 1638, 1642, 1645 (US 62384).
781. In July 1984, RJR mailed letters from employee Ann Griffin addressed to various children who had written to the company. In the letters, RJR claimed to be engaged in an effort to determine the harmful effects of smoking for the benefit of smokers, promised to support disinterested research into smoking and health, and claimed that research had not revealed any "conclusive" evidence that any element in cigarettes causes disease. 505465919-5919 (US 20741).
782. Over time, RJR sent numerous letters to survivors of deceased smokers, denying any scientifically established links between smoking and disease. For instance, on August 18, 1988, RJR sent a letter to Anthony A. Christina (the widower of a lung cancer victim) in which the company denied that there was any causal link between smoking and disease. 515792869-2869 (US 2086).
783. As of January, 2005, RJR Chairman Andrew Schindler was asked what his current answer to the Christina letter would be, and whether he would still refuse to admit that smoking causes disease. The most he would say was that, as of January, 2005, smoking poses "significant health risks and may contribute to certain diseases in some people." Schindler TT, 1/24/05, 10810:9-21.
784. In January 1990, RJR's Public Relations Manager wrote in a letter to the principal of a grade school and one of the school's students:
The tobacco industry is also concerned about the charges being made that smoking is responsible for so many serious diseases. Long before the present criticism began, the tobacco industry, in a sincere attempt to determine what harmful effects, if any, smoking might have on human health, established the Council for Tobacco Research — USA. The industry has also supported research grants directed by the American Medical Association. Over the years the tobacco industry has given in excess of $162 million to independent research on the controversies surrounding smoking — more than all the voluntary health associations combined. Despite all the research going on, the simple and unfortunate fact is that scientists do not know the cause or causes of the chronic diseases reported to be associated with smoking.
508466199-6200 at 6199 (US 20813).
785. Beginning in 1986, Brennan Dawson, spokesperson for the Tobacco Institute, reiterated in numerous television appearances the Tobacco Institute's public position that the links between smoking and disease were based on statistics, and that the causal relationship between smoking and disease had not yet been established. The Tobacco Institute's position that it had not been proven that smoking caused disease was not shared by a single public health organization during the entire time Dawson served as spokesperson for the organization. Dawson WD, 64:17-23, 76:8-11; Dawson TT, 1/3/04, 10102:5-24.
786. During an August 17, 1986 appearance on the television program "Newsmaker Sunday," Dawson stated, in response to a question about the Tobacco Institute's position on whether cigarette smoking is hazardous to the smoker, that "what we think . . . is that the facts are not clear. The causal relationship has not been established." (no bates) (US 89296).
787. In an April 8, 1987 appearance on the television show "Ask An Expert," when asked whether smoking causes lung cancer, Dawson stated, "[i]t's not a yes and it's not a no. . . . We're not going to tell anyone that smoking is good for them. We're not going to tell them that smoking is bad for them. It may be, it may not be." (no bates) (US 89292).
788. In a January 11, 1989 appearance on the television show "Good Morning America," Dawson stated that "all the links that have been established between smoking and certain diseases are based on statistics. What that means is that the causative [sic] relationship has not yet been established." This was twenty-five years after the Surgeon General announced a causal relationship between smoking and lung cancer. TIMN389474-9479 at 9475 (US 21286).
789. Similarly, in an appearance on CNN's "Crossfire" on April 18, 1989, Dawson claimed:
Statistically there are associations. In terms of biological causation that hasn't been found which is why I came to the conclusion that smokers have to make up their own minds. We all know what the Surgeon General's warnings say. In fact, the vast majority of people believe it so I think we are intelligent enough as adults to make up our own minds.
(no bates) (US 89290).
790. In a February 27, 1990 appearance on CBS's "Nightwatch," when asked whether she believed cigarette smoking "contributes to heart disease and cancer," Dawson refused to provide a straight answer, instead responding that "I think that that's an individual decision that each person needs to make for themself." CORTI1731-1738 at 1737 (US 87735).
791. Dawson dismissed the overwhelming scientific evidence linking smoking and disease as merely "statistical." In a subsequent appearance on Crossfire on April 11, 1990, when asked whether smoking caused cancer, heart attacks, or strokes, Dawson again repeated: "The links that have been made between smoking and disease you just rattled off, for example, are statistical in nature. The industry sticks by that position." CORTI1828-1841 at 1831 (US 85150).
792. The Chief Executive Officer and Chairman of Philip Morris Companies, Geoffrey Bible, was the ultimate authority on what the content would be in public statements on smoking and health made by Philip Morris Companies subsidiaries, including Philip Morris USA. Bible PD, United States v. Philip Morris, 8/22/02, 83:9-84:9, 85:22-86:25.
Defendant Altria, which was originally incorporated in 1985 as Philip Morris Companies Inc., effectively and actively controls the activities of all of its subsidiaries, including Defendant Philip Morris USA Inc., Philip Morris Companies, and Philip Morris International, Inc. ("PM International"). Overall policies on all major aspects of Altria operating companies' operations are set by Altria management, and senior Altria executives, employees, and agents participate in and/or control decisions about how the operating companies implement those policies, through both formal and informal reporting relationships. Berlind PD, United States v. Philip Morris, 5/23/02, 8:4-10:13; 2071412978-3143 (US 23061*).
793. When a company makes a statement about the carcinogens in its product, that has much more impact upon the consuming public than if some third party does. Bible PT, Minnesota v. Philip Morris, 3/2/98, 5762:5-9.
794. When Philip Morris made statements about smoking and health, the company intended the public — including consumers and public health authorities — to rely on them. Id. at 5718:7-14.
795. When Brown Williamson puts statements on its website, it intends that consumers should act in reliance upon the information contained in those statements. Ivey TT, 11/16/04, 6098:16-19.
6. As of 2005, Defendants Still Do Not Admit the Serious Health Effects of Smoking Which They Recognized Internally Decades Ago
796. More than forty years after Defendants issued the Frank Statement and created TIRC, Defendants' essential position on the relationship of smoking and health remains virtually unchanged. In April 1994, in the now-famous congressional hearings before the United States House of Representatives' Subcommittee on Heath and the Environment, Defendants' executives asserted yet again that the causal relationship of smoking and cancer had not been proven: the CEOs of Defendants B W, Liggett, Lorillard, Philip Morris USA, and RJR publicly denied that smoking caused cancer. TLT0730001-0850 (US 77011); TLT0730851-1975 (US 77012); Brandt WD, 128:14-131:4; (no bates) (US 20468) (Cimons, Marlene,Cigarette Chiefs Steadfastly Deny Smoking Kills, Los Angeles Times, April 15, 1994, at A1.
797. The statements of the CEOs were restatements of positions the companies continued to take publicly and uniformly at that time. For instance, in 1991, Charles Wall of Philip Morris Companies sent a letter to international competitors discussing unified industry language to deny that cigarette smoking had been proven to "cause" lung cancer. 2023235511-5512 (US 22725).
798. Thomas Sandefur, CEO of B W from 1993-1996, stated in 1994 that "there's a health risk with smoking and disease," but that it "hasn't been proven that it [smoking] causes lung cancer." Sandefur PD, Broin v. Philip Morris, 7/13/94, 84:22-86:5.
799. Sandefur also stated that he did not agree with the Surgeon General's conclusion that smoking causes cancer, heart disease, and other diseases because, as he stated, "[t]hey're not dealing with whole smoke. They're dealing with painting of mice and that kind of thing. I don't think that's valid in terms of human practices of smoking whole smoke." Id.
800. Sandefur admitted that he was unaware of any studies showing that whole smoke does not cause disease, and he was unable to name one scientist or medical doctor totally unconnected with the tobacco industry who said that it had not been established that cigarette smoking causes cancer. Id. at 86:6-87:4, 89:11-17, 125:13-16, 144:15-145:9.
801. In April 1995, B W informed B W Japan to answer inquiries about smoking and health by reassuring the person making the inquiries that whether or not smoking cause diseases "is still [an] inconclusive matter." 450180143-0143 (US 21885).
802. As of the early 1990s, Lorillard's position on causation was:
Lorillard does not and will not authorize the use of the Risk Factor formulation for causation for public relations purposes. We wish to maintain the traditional articulation: unproven, statistical, lack of mechanism. Risk Factor discussion is for scientists only and only in the courtroom and its controlled circumstances.
92348935-8936 (US 57176); Stevens WD, 47:21-48:13.
803. Michael Prideaux, a spokesperson for BAT, stated in 1994 that BAT's current position was that there was no causal link between smoking and cancer. 502576028-6030 at 6028 (US 86882).
804. Martin Broughton, Chairman of BAT plc, the corporate parent of BATCo, stated in opening remarks to analysts, investors and journalists at a briefing held at Windsor House on October 30, 1996, that "We have no internal research which proves that smoking causes lung cancer or other diseases or, indeed that, smoking is addictive." 800113810-3812 at 3810 (US 85343).
805. In 1994, Philip Morris ran a paid newspaper statement about smoking, nicotine and addiction. It said: "Both smokers and nonsmokers deserve to know facts, not innuendo, about cigarettes." The statement also said "Philip Morris does not believe cigarette smoking is addictive. People can and do quit smoking all the time." 2023011263-1263 (US 20371); Keane WD, 36:21-37:16.
806. In 1997, Philip Morris Companies' Chief Executive Officer and Chairman, Geoffrey Bible, took the position that cigarettes were not a cause of lung cancer, but asserted that if they were shown to be, "[he'd] probably . . . shut [the] company down instantly to get a better hold of things." He made this statement four decades after Philip Morris USA recognized the carcinogenic and disease-causing nature of cigarettes in internal documents. Bible PD, Florida v. American Tobacco, 8/21/97, 27:1-24. In 1997, Bible also voiced his disagreement with an Australian cigarette label warning that stated: "Smoking causes lung cancer." Id. at 32:16-33:8.
807. Bible stated in 2002 that he did not know if Philip Morris cigarettes had ever caused disease in any individual. Bible PD,United States v. Philip Morris, 8/22/02, 63:19-64:5.
808. Although Philip Morris expressed "differences" in opinions between it and the public health authorities, Senior Vice President and General Counsel Denise Keane could not, while testifying in this litigation, cite any peer-reviewed article, study, or consensus report from 1977-1997 that disputes the scientific conclusion that smoking causes lung cancer. Keane WD, 16:18-17:12.
809. Prior to October 1999, Philip Morris's public position on disease causation was that smoking cigarettes was a risk factor for many diseases, but may or may not cause them. Steve Parrish admitted that Philip Morris's "risk factor" position was at odds with the position of the public health authorities who had stated for decades that smoking was not merely a risk factor for certain diseases, but caused these diseases as well. Parrish WD, 15:11-16:14.
810. Finally, on October 13, 1999, when Philip Morris launched a corporate website, it changed its public position on smoking and health issues. The website stated: "There is an overwhelming medical and scientific consensus that cigarette smoking causes lung cancer, heart disease, emphysema, and other serious disease in smokers." Steve Parrish, Senior Vice President of Corporate Affairs for Altria Group, acknowledged that the overwhelming scientific consensus referenced in the October 1999 statement had existed for decades. Parrish further conceded that Philip Morris's refusal to acknowledge prior to October 1999 that smoking caused disease had damaged the company's credibility because there was no support for Philip Morris's view outside of the tobacco industry. 2085240087-0089 at 0087 (US 45673); Parrish WD, 9:20-12:3, 15:5-10; Keane WD, 24:21-25:28:8.
811. Although Philip Morris recognized the "overwhelming medical and scientific consensus," regarding the causation of disease by cigarette smoking in 1999, it did not state its agreement with that consensus until October 2000. Keane WD, 27:11-28:11. Parrish acknowledged that Philip Morris changed its position on causation in 2000 because of criticism from the public health community, and that Philip Morris's decision to state its agreement with the "overwhelming medical and scientific consensus" was not based on any new scientific evidence. The scientific basis for the "overwhelming medical and scientific consensus" had existed for decades prior to Philip Morris's decision to state its agreement with it. Parrish WD, 19:13-21:21.
812. Although Philip Morris is free to voluntarily change the information it includes on its cigarette warning labels, it has chosen not to change those labels even though in October 2000, the company changed its public position to admit that smoking causes disease and is addictive. Bible PD, United States v. Philip Morris, 8/22/02, 112:12-113:17.
813. Philip Morris has never told its customers on its cigarette packaging or in onserts that it agrees that smoking causes cancer and other diseases in smokers. Its packages merely direct smokers to its website address. Keane WD, 35:10-22.
814. Speaking on behalf of RJR, Chairman Andrew Schindler, who received between $44 and $45 million in compensation in 2004, has refused to admit that smoking causes disease, as the following colloquies demonstrate: (1) When asked, "you won't say sitting here today that cigarette smoking causes disease, right?," he responded: "Well, my testimony and what's on our Website today is cigarette smoking [has] inherent health risks [and] may contribute to causing certain diseases in some people." Schindler TT, 1/24/05, 10811:11-19; (2) when asked again, "So you say it's possible, it's likely, but you don't say it does, do I have that right?," Mr. Schindler admitted, "Yes." Id. at 10812:20-22; (3) RJR's website, like its Chairman, does not admit that smoking is a cause of disease. Instead, it states: "We produce a product that has significant and inherent health risks for a number of serious diseases and may contribute to causing these diseases in some individuals." Id. at 10814:11-15.
815. As late as 2004, Lorillard CEO Martin Orlowsky refused to admit the full extent of smoking's harm. He was specifically asked: "Why hasn't Lorillard specifically stated publicly that smoking causes any diseases other than smoking [sic] emphysema, COPD or heart disease?" He responded:
We have — in certain instances, we do not know if in fact the evidence, the scientific evidence is such that it warrants saying it does cause. However, Lorillard's longstanding position, as long as I've been with the company, is that certainly smoking can, and is a risk factor for those diseases.
Orlowsky TT, 10/13/04, 2303:7-15.
816. Arthur Stevens, former Senior Vice President and General Counsel of Lorillard responded in 2000 to the question of whether smoking causes disease:
I am aware that the company and others are of the position and the view, and I embrace that, that cigarette smoking is a risk factor for disease and I have no argument with the public health and the medical and other authorities taking that position.
Stevens WD, 47:1-11.
817. The risk factor language was not and is not the position of the scientific community and Stevens knew that. When questioned regarding the distinction, Stevens said: "Q: Were you aware, Mr. Stevens, that the risk factor formulation you stated was not the position of public health authorities? A: Yes I was." Stevens WD, 47:12-14.
818. Lorillard continues to issue public statements on smoking and health issues through PR Newswire. Press releases are sent by interstate wire transmission by PR Newswire, which in turn sends the releases out to news media so that Lorillard can "get the message out." Milstein TT, 1/7/05, 9261:8-18, 9271:7-17.
819. Press releases are also kept on Lorillard's website, where they can be accessed and reviewed by the public. Id. at 9272:12-20.
820. Lorillard General Counsel Ronald Milstein admitted that the content of recent Lorillard press releases on smoking and health issues, including addiction and the health effects of exposure to ETS, is similar to statements that Defendants have made for decades. Id. at 9264:11-24, 9266:6-16, 9277:23-9278:12; TLT0961610-1610 (US 86693); USX5710001-0002 (US 89303); USX5710005-0006 (US 89305).
821. Two years after the effective date of the Master Settlement Agreement, in 2000, B W told visitors to its website: "We know of no way to verify that smoking is a cause of any particular person's adverse health or why smoking may have adverse health effects on some people and not others." (no bates) (JD 012645).
7. Conclusions
822. Defendants have been aware since the late 1950s of substantial evidence demonstrating that smoking causes significant adverse health effects, in particular, lung cancer. The evidence was presented by practicing physicians, such as Michael DeBakey, Alton Oschner, and Richard Overholt, by academic scientists, such as Evarts Graham and Ernst Wynder, and by government officials such as Surgeon General Leroy Burney in his 1959 JAMA article.
823. By 1964, when the Surgeon General of the United States, Luther Terry, issued his ground-breaking Report considering some 7,000 scientific articles on the relationship between smoking and health, there could no longer be any question that there was a consensus in the American scientific community "that cigarette smoking contributes substantially to mortality from certain specific diseases and to the overall death rate," that "[c]igarette] smoking is associated with a 70 percent increase in the age-specific death rates of males," that "[c]igarette smoking is causally related to lung cancer in men," and that the "data for women, though less extensive, point in the same direction." In 1968, the Surgeon General concluded that "cigarette smoking can contribute to the development of cardiovascular disease and particularly to death from coronary heart disease."
824. From at least 1953 until at least 2000, each and every one of these Defendants repeatedly, consistently, vigorously — and falsely — denied the existence of any adverse health effects from smoking. Moreover, they mounted a coordinated, well-financed, sophisticated public relations campaign to attack and distort the scientific evidence demonstrating the relationship between smoking and disease, claiming that the link between the two was still an "open question." Finally, in doing so, they ignored the massive documentation in their internal corporate files from their own scientists, executives, and public relations people that, as Philip Morris's Vice President of Research and Development, Helmut Wakeham, admitted, there was "little basis for disputing the findings [of the 1964 Surgeon General's Report] at this time."
825. Indeed, as far back as 1968, William Kloepfer, Vice President of Public Relations for the Tobacco Institute recognized that "[o]ur basic position in the cigarette controversy is subject to the charge, and may be subject to a finding, that we are making false or misleading statements to promote the sale of cigarettes." Mr. Kloepfer was both correct and prescient.
826. For more than forty years after issuance of the Frank Statement in 1954, and for more than thirty years after issuance of the Surgeon General's first Report on smoking and health, Defendants maintained their position denying the causal relationship between smoking and disease. Finally, in 1999, Philip Morris launched a corporate website acknowledging the "overwhelming medical and scientific consensus that cigarette smoking causes lung cancer, heart disease, emphysema, and other serious disease in smokers." Despite this acknowledgment of the "overwhelming medical and scientific consensus, "Philip Morris could not bring itself to clearly state its agreement with that consensus until October 2000. Philip Morris still does not include the information on its cigarette packaging that it agrees that smoking causes cancer and other diseases in smokers.
827. Neither RJR, Lorillard, nor B W, have openly admitted that smoking causes cancer. Indeed, in 2000, two years after the effective date of the Master Settlement Agreement, B W was putting the following message on its website: "We know of no way to verify that smoking is a cause of any particular person's adverse health or why smoking may have adverse health effects on some people and not others."
B. The Addictive Properties of Nicotine
1. Introduction
828. Cigarette smoking is an addictive behavior, characterized by drug craving, compulsive use, tolerance, withdrawal symptoms, and relapse after withdrawal. Underlying the smoking behavior and its remarkable intractability to cessation is the drug nicotine. Nicotine is the primary component of cigarettes that creates and sustains addiction to cigarettes. While the terminology of addiction has evolved over time, the underlying facts about the addictive nature of smoking and the centrality of nicotine to the addiction have been known and have not changed in over 40 years.
829. Since the 1950s, Defendants have researched and recognized, decades before the scientific community did, that nicotine is an addictive drug, that cigarette manufacturers are in the drug business, and that cigarettes are drug delivery devices. The physiological impact of nicotine explains in large part why people use tobacco products and find it so difficult to stop using them. Moreover, Defendants have sought to exploit the addictive quality of smoking and nicotine for decades in order to develop new products and increase sales.
830. Notwithstanding the understanding and acceptance of each Defendant that smoking and nicotine are addictive, Defendants have publicly denied and distorted the truth as to the addictive nature of their products for several decades. Defendants have publicly denied that nicotine is addictive, have suppressed research showing its addictiveness, and have repeatedly used misleading statistics as to the number of smokers who have quit voluntarily and without professional help.
831. Defendants have intentionally maintained and coordinated their position on addiction and nicotine as an important part of their overall efforts to influence public opinion and persuade people that smoking was not dangerous; in this way, the cigarette company Defendants could keep more smokers smoking, recruit more new smokers, and maintain or increase their earnings. Additionally, Defendants have sought to discredit evidence of addiction in order to preserve their "smoking is a free choice" argument in smoking and health litigation.
832. Defendants, with the exception of Philip Morris, continue to publicly deny and distort the truth as to the addictiveness of cigarette smoking and nicotine's role in the addiction. Defendants ignore their own internal statements acknowledging and exploiting nicotine addiction. While nicotine shares certain key attributes of heroin, cocaine, and other drugs, Defendants continue to assert that smoking is no more addictive than coffee, chocolate, and exercise, and (with the exception of Philip Morris) continue to deny that nicotine is addictive at all.
2. Cigarette Smoking Is Addictive and Nicotine Is the Primary Element of That Addiction
a. How Nicotine Operates within the Body
833. When a person puffs a cigarette, she inhales cigarette smoke, which consists of an aerosol of particles and gases, including water, nicotine, and tar. Nicotine, a chemical found primarily in tobacco plants, has a structure similar to a chemical in the body called acetylcholine, a neurotransmitter which provides the pathway of communication from one nerve cell to another. Nicotine competes with and blocks the effects of acetylcholine in the body. When cigarette smoke is inhaled deeply into the lungs, nicotine particles impact the breathing tubes in the lungs and nicotine is rapidly absorbed into the blood stream. It then rapidly moves to the heart and from there through the arterial blood vessels to the rest of the body, including the brain. It takes about 15-20 seconds from the time a smoker puffs on a cigarette for its nicotine to enter the brain. Benowitz WD, 15:13-16:13.
834. The more quickly nicotine is absorbed, the higher its concentration in the body and the greater its effects. Smoking nicotine provides the fastest rate of absorption and highest blood levels of nicotine. On average, one cigarette delivers 1mg to 1.5 mg of nicotine. In comparison, when nicotine is absorbed from a skin patch, blood levels rise gradually over 4 to 6 hours; when it is absorbed from gums or lozenges, blood levels rise over 30 minutes. Again, in comparison, caffeine and alcohol absorb into the body over 30 minutes. Id. at 18:9-11, 18:18-24, 19:18-20:13.
835. Nicotine binds to receptors that are intended to bind to the body's own neurotransmitter, acetylcholine. When nicotine binds to receptors, it artificially stimulates the acetylcholine system and causes the release of a number of hormones, including dopamine, norepinephrine, serotonin, and endorphins, which then affect mood and behavior. In addition, nicotine affects virtually every body organ. For example, nicotine increases the rate and force of heart contractions and constricts blood vessels. Id. at 16:14-17:23.
836. Nicotine produces two different kinds of effects. First, there are certain primary effects of nicotine on the brain that smokers find desirable. For example, the first cigarette in the morning usually has a stimulating or alerting effect. Similarly, if a person is feeling stressed or anxious, nicotine may reduce that stress or relieve that anxiety and make a person feel better. Smokers may, however, develop tolerance to many of these primary effects. As occurs with the use of all psychoactive drugs, the brain attempts to adapt to the persistent presence of nicotine. This adaptation, or tolerance, produces actual changes in the brain's structure. Over time, the brain becomes tolerant to the effects of nicotine and needs even greater amounts of it to produce the same effects on hormones as it once did before the development of tolerance. Id. at 22:5-23:17.
837. Second, because the smoker's brain has adapted to the constant presence of nicotine, it becomes dependent on nicotine to function normally. When a smoker doesn't have nicotine, the brain functions abnormally and most people, approximately 80%, experience withdrawal symptoms. Those symptoms, which are the very opposite of the primary effects of nicotine, include irritability, lethargy, restlessness, sleeplessness, anxiety, depression, hunger, and weight gain. Withdrawal symptoms begin to occur as soon as nicotine levels in the body start to decline. When a person is experiencing nicotine withdrawal symptoms, ingestion of nicotine reverses the effects. This reversal of unpleasant withdrawal effects is perceived by the smoker as having beneficial effects on mood and arousal. Id. at 23:18-24:9. Thus, as tolerance develops, the smoker gets fewer pharmacological benefits from each cigarette and smokes more and more to avoid withdrawal symptoms. Id. at 24:18-20; See also Farone WD, 73:2-20. However, the smoker's need for even greater amounts of nicotine does eventually plateau. It take an average of seven years to reach a plateau level of cigarette consumption.Id. at 24:22-24.
838. In commonly understood terms, smokers become dependent on the significant pharmacological and psychoactive effects of the nicotine in cigarettes, resulting in craving, compulsive use, difficulty in quitting, and relapse after withdrawal. Farone WD, 73: 2-20.
839. There is compelling evidence that smoking behavior is motivated by a need to maintain a preferred dose or level of nicotine intake, leading to the phenomenon of nicotine compensation, or titration, in response to the use of cigarettes with lower nicotine yields. Although it may be correct that addiction to smoking is, in part, an addiction to a set of behaviors, i.e., opening a pack, taking out a cigarette, lighting up, tapping ashes, etc., the fact is that nicotine is the essential ingredient which creates and maintains the addiction. To give a simplistic example, denicotized cigarettes have attracted virtually no smokers even though the behaviors involved are the same. See Farone WD, 73:21-74:3.
840. This understanding supports the now overwhelming consensus in the scientific and medical community that cigarette smoking is an addictive behavior and that nicotine is the component in cigarettes that causes and sustains the addiction. Henningfield WD, 114:9-12; Burns WD, 13:16-14:19. However, it has taken over 50 years for this full understanding of nicotine's role and addictiveness to evolve.
b. Evolving Definitions of "Addiction" and Classification of Nicotine
841. In the last fifty years, as the scientific, regulatory, and public health communities have developed greater understanding of drug use, they have adopted a more nuanced definition of what constitutes an addiction to drugs. As the definition of addiction evolved, so did the classification of nicotine.
842. In its 1957 Report, the World Health Organization ("WHO") Expert Committee on Addiction Producing Drugs set forth criteria for determining both drug dependence and drug habituation:
Drug Addiction Drug Habituation Drug addiction is a state of periodic or Drug habituation (habit) is a condition resulting chronic intoxication produced by the repeated from the repeated consumption of a drug. Its consumption of a drug (natural or synthetic). characteristics include: Its characteristics include: 1) An overpowering desire or need 1) A desire (but not a compulsion) to (compulsion) to continue taking the drug and continue taking the drug for the sense of to obtain it by any means; improved well-being which it engenders; 2) A tendency to increase the dose; 2) Little or no tendency to increase the dose; 3) A psychic (psychological) and 3) Some degree of psychic dependence on generally a physical dependence on the the effects of the drug, but absence of physical effects the effect of the drug; dependence and hence of an abstinence syndrome; 4) Detrimental effect on the individual 4) Detrimental effects, if any, primarily on and on society. the individual. See Benowitz TT, 11/2/04, 4621:28, 4623:1-20; Henningfield TT, 11/23/04, 6866:20-6867:11; (US 64057). The 1957 WHO Report emphasized the importance of intoxication as a component of addiction, which it labeled a personality disorder. A drug addiction was used to describe drugs that produced marked intoxication with concomitant impairment of performance and severe physical dependence. A drug addiction at that time also meant damage not only to the individual but to society (e.g., anti-social behavior and criminality). A drug habit, on the other hand, was considered to be a psychological dependence involving no physical dependence and/or no damage to society. Henningfield WD, 114:18-116:14.843. In 1964, shortly before the issuance of the Surgeon General's 1964 Report, the WHO Expert Committee on Addiction Producing Drugs published a new Report abandoning its prior definitions of habituation and addiction. Instead, the WHO committee recommended the adoption of the term "dependence," which it defined as "a behavioral pattern in which the use of a given psychoactive drug is given a sharply higher priority over other behaviors which once had a significantly higher value." Most importantly, the 1964 WHO Report determined that intoxication and personality disorder were not accurate criteria for determining addiction, replacing them with measurements of addictive effects including physiological dependence, withdrawal, reinforcement, and psychoactive effects. Henningfield WD, 109:3, 20, 110:8-22, 114:18-116:14, 122:20-123:16.
844. Because the 1964 WHO Report was issued so shortly before the 1964 Surgeon General's Report, the Surgeon General was unable to take its new definitions into account when considering the proper classification of nicotine. Consequently, in his January 1964 Report, the Surgeon General, using the earlier criteria established by the WHO in 1987 for "addiction" and "habituation," concluded that smoking, nicotine, and cocaine were not addictions. Smoking in particular was termed a "habituation" rather than an "addiction." The criteria for addiction that the 1964 Report used were: (1) periodic intoxication; (2) overpowering desire or need; (3) tendency to increase dose; (4) psychic and physical dependence; and (5) detrimental effects on society. The 1964 SG report concluded, based on the 1957 WHO definition and the limited data available at the time, that smoking produced only a "psychiatric but not physical dependence." VXA1601844-2232 (US 64057); Henningfield WD, 114:18-117:5.
845. Between 1964 and 1988, when the Surgeon General finally did apply the term addiction to smoking, many individuals and organizations within the public health community struggled with the classification of nicotine. Each examined the issue from the perspective of their own particular discipline and constituency.
846. Despite the fact that there were a few early studies suggesting that nicotine could create pleasurable effects or withdrawal symptoms, the state of knowledge in the public health community about nicotine's role in behavior was limited. For example, in 1962, the Larson, Haag, and Silvette compendium was published, with the financial support of Philip Morris. This highly respected reference book summarized much of the world literature on the effects of tobacco and nicotine. Although it found that nicotine is a powerful and potent nerve acting drug, it did not address the issue of addiction. In addition, there was evidence suggesting that nicotine could serve as a reinforcer for monkeys, generated by work in the later 1960s at the University of Michigan. There was evidence suggesting the existence of a nicotine withdrawal syndrome dating to the Finnegan, Larson, and Haag study in 1945. There was evidence suggesting that injected nicotine could cause psychoactive effects and provide a substitute for tobacco from the Lennox Johnston study of 1942. While there was some indication of the important role played by nicotine, all such studies left too many significant gaps in the analysis of nicotine to draw definitive conclusions. Id. at 117:2-118:11.
847. In 1979, Michael Russell, one of the most prominent public health researchers on nicotine, wrote a chapter in a NIDA monograph, titled "Tobacco Dependence: Is Nicotine Rewarding or Aversive," exploring whether nicotine was an important factor in smoking. He concluded that it remained unproven "that nicotine is what smokers seek." ATX02 0068361-10068383 (US 65420). Dr. Russell noted key gaps in knowledge, and that animal models of nicotine self-administration had proven inconclusive. Henningfield WD, 126:18-127:10. At that point, the scientific and medical community simply did not have the knowledge of nicotine's pharmacological effects and the greater impact that a faster rate of delivery of the dose could provide. Id.
848. It was not until 1980 that clinical psychiatrists determined that there was sufficient evidence of dependence and withdrawal from smoking to include these symptoms in the APA's Diagnostic and Statistical Manual ("DSM-III"). Even then, the syndromes were called "tobacco dependence" and "tobacco withdrawal" rather than "nicotine dependence" and "nicotine withdrawal," because of psychiatrists' insufficient knowledge and understanding of the specific role of nicotine. It was clear to the developers of the DSM-III that nicotine played a role in making smoking addictive, but there were unresolved questions as to the importance of nicotine as opposed to the numerous other constituents of tobacco smoke and behavioral components of smoking that were the possible addictive elements. Henningfield WD, 123:23-128:21.
849. It was not until 1982 that the National Institute of Drug Abuse ("NIDA") concluded that scientific evidence demonstrated that nicotine is addictive. Id. at 132:10-13. The Director of NIDA, Dr. William Pollin, testified to that conclusion before Congress in 1982 and 1983. HHA5002584-2590; US 58808. NIDA applied the 8 factors listed in the Controlled Substances Act of 1970 ("CSA"), all of which were used by the Food and Drug Administration ("FDA") and Drug Enforcement Agency ("DEA"), to determine if a substance should be officially designated an addictive drug, which is a "controlled substance" under the CSA. NIDA concluded that smoking met the following criteria for nicotine drug dependency: (1) persistent regular use of a drug; (2) attempts to stop such use which lead to discomfort and often result in termination of the effort to stop; (3) continued drug use despite damaging physical and/or psychological problems; and (4) persistent drug-seeking behavior. NIDA also concluded that "not only has tolerance to some of the effects of smoking been demonstrated but metabolic tolerance to various components of cigarette smoke, including nicotine, has been documented." NIDA relied upon previously existing data as well as findings from its own Addiction Research Center showing that nicotine met key criteria as a reinforcing and euphoriant drug in animal and human studies. Id. at 133:1-134:13.
850. Finally, in 1988, the Surgeon General, in his Report on "The Health Consequences of Smoking — Nicotine Addiction," reached the significant conclusion that the reason smokers smoke is because they are addicted to nicotine. After an exhaustive review of the literature on nicotine and smoking behavior, the Report found that cigarettes and other forms of tobacco are addicting, and that nicotine is the substance in tobacco that causes the addiction. The Health Consequences of Smoking: Nicotine Addiction: A Report of the Surgeon General (1988), VXA0300208-0848 (US 64591).
851. Relying in part upon the APA and WHO clinical findings that nicotine dependence and withdrawal could occur with tobacco use and that nicotine was the key pharmacological agent, and in part upon the chemical and pharmacological evidence considered by NIDA, the DEA, and the FDA in determining if a drug is addictive, the 1988 Surgeon General's Report set forth three primary criteria for determining whether a drug, in this case nicotine, is addicting: (1) use is highly controlled or compulsive; (2) the use of the drug produces mood altering (psychoactive) effects; and (3) the drug reinforces behavior, resulting in continued intake or drug-reinforced behavior. Henningfield WD, at 143:20-144:3; VXA0300208-0848 (US 64591); Benowitz WD, 27:6-13.
852. The first criterion, highly controlled or compulsive use, refers to drug-seeking and drug-taking behavior that is driven by strong, often irresistible urges. Such use persists despite a desire to quit or even repeated attempts to do so. This type of behavior has also been described as "habitual." Benowitz WD, 27:21-28:2.
853. Drug addiction, however, is distinguished from habitual behaviors not involving drugs — such as habitual exercising or overeating — by the second criterion, the presence in the blood stream of a drug with psychoactive or mood-altering effects on the brain. Food, for example, which is necessary to sustain life, is not a drug and does not satisfy the second criterion. Id. at 28:3-16. Smoking cigarettes involves a drug and is not comparable to non-drug "habits" such as jogging, playing tennis, or biting one's nails. Rowell TT, 3/23/05, 16685:5-16687:19.
854. Finally, to meet the third criterion in the Surgeon General's Report, the drug must be capable of functioning as a reinforcer that directly strengthens behavior leading to further drug ingestion. Such reinforcement exists where, for instance, the drug produces pleasant or rewarding sensations like stimulation, relaxation, or euphoria, or mitigates unpleasant withdrawal sensations experienced when a person stops using it. Benowitz WD, 28:17-29:7.
855. The 1988 SG Report demonstrated that nicotine in cigarettes meets the same criteria for addiction that apply to heroin, morphine, and cocaine and that the pharmacological and behavioral processes that determine tobacco addiction are similar to those that determine addiction to drugs such as heroin and cocaine. Henningfield WD, 143:13-19. The Report specifically found that nicotine, heroin, morphine, and cocaine all met the criteria for addiction.
856. Dr. Peter Rowell, one of the Defendants' experts, admitted that there are many similarities between the properties that determine tobacco addiction and those that determine heroin and/or cocaine addiction:
Q. And I want to direct your attention specifically to the third major conclusion expressed by the Surgeon General in 1988, which appears at page 9, and it reads, quote, the pharmacologic and behavioral processes that determine tobacco addiction are similar to those that determine addiction to drugs such as heroin and cocaine. Do you see that?
A. Yes, I do.
Q. Do you agree or disagree with what the Surgeon General said about similarities existing between the pharmacologic and behavioral properties that determine tobacco addiction and those that determine addiction to drugs such as heroin and cocaine?
A. I agree there are similarities.
Q. Have you prepared an animation that — well, before we get to that, let me ask you a further question. When you say that there are these similarities, what is the basis for your saying that there are similarities from a pharmacological point of view? What are you focusing on?
A. The dependence properties of nicotine and more dramatically cigarette smoking in regards to physical dependence, withdrawal symptoms, effects of neurochemistry in the brain on neurotransmitters, self-administration studies. Many of these things were done in the '80s just before the Surgeon General's report. So these were the similarities that led the Surgeon General to indicate that there were, in fact, these similarities between cigarette smoking and these other drugs.
Rowell TT, 3/22/05, 16549:23-16650:15.
857. The 1988 Surgeon General's Report did not include intoxication as a criterion for addiction. As discussed earlier, in the 1950s and early 1960s, it was believed that significant intoxication or impairment were required to sustain addiction. That requirement of addiction has long been abandoned by the WHO, the APA, and the Surgeon General because many intoxicating substances are not addicting and because many addictive drugs are used and abused in dose levels that do not cause intoxication. Benowitz WD, 30:14-31:25; Henningfield WD, 145:20-146:5, 150:14-151:8.
858. Defendants' own expert witness, Dr. Rowell, rejected the claim that intoxication was necessary for nicotine to be considered addicting:
Q. And, sir, it is correct, is it not, that it's been your view since the early 1970s that to be addictive, a drug does not have to cause intoxication?
A. Yes.
Q. The suggestion, then, that a drug cannot be addictive because it is not intoxicating, you wouldn't agree with that statement, correct?
A. I would not.
Rowell TT, 3/23/05, 16632:4-7, 16632:23-16633:2.
859. In addition, the Surgeon General did not include either tolerance or withdrawal effects as criteria for addiction. However, the 1988 Surgeon General's report documented both tolerance and withdrawal and determined that nicotine met these additional criteria. See 1996 FDA Jurisdictional Determination, 61 Fed. Reg. 44619 (August 1996); VXA1242326-3211 at 2645-2651 (US 64323) (recognizing that nicotine is addictive even under the outdated 1964 SG Report/1957 WHO definition). However, neither tolerance nor withdrawal are the primary criteria of drug dependence/addiction.
860. In 1994, the APA published its Diagnostic and Statistical Manual of Mental Disorders-IV ("DSM-IV") which defined "substance dependence" as "a pattern of repeated self-administration that usually results in tolerance, withdrawal, and compulsive drug-taking behavior." DSM-IV continued to recognize the diagnoses of both "nicotine dependence" and "nicotine withdrawal." American Psychiatric Association, Diagnostic and Statistical Manual of Mental Disorders IV (1994) at 176-181 (JD 000460).
861. In the DSM-IV section titled "Nicotine-Related Disorders," the APA concluded that nicotine can produce dependence in people who use all forms of tobacco, including pipes, chewing tobacco, or cigarettes, because the following criteria are present: tolerance, withdrawal, a desire to quit, a great deal of time spent using nicotine, and the continued use despite medical problems. APA, DSM-IV (1994), at 176-181, 242-247 (JD 000460).
862. In describing the diagnosis of "Nicotine Dependence," the DSM-IV authors stated that, "Tolerance to nicotine is manifested by the absence of nausea, dizziness, and other characteristic symptoms despite using substantial amounts of nicotine or a diminished effect observed with continued use of the same amount of nicotine-containing products." Id.
863. The DSM-IV authors specifically rejected Defendants' oft-repeated public claim that smoking cigarettes does not produce withdrawal and therefore is not addictive: "Cessation of nicotine use produces a well-defined withdrawal syndrome that is described below. Many individuals who use nicotine take nicotine to relieve or avoid withdrawal symptoms when they wake up in the morning or after being in a situation where use is restricted." In addition, withdrawal symptoms "are typically more intense among individuals who smoke cigarettes than among individuals who use other nicotine-containing products." Id. at 243-244.
864. By 1988, almost every major public health organization, including the Surgeon General, the National Institute on Drug Abuse, the World Health Organization, the American Psychiatric Association, the Harvard School of Public Health, and others, had declared that smoking is an addiction driven by the drug nicotine. Benowitz WD, 26:3-36:8.
The American Psychiatric Association focuses on behavioral and clinical symptoms indicative of drug dependence, compared to the WHO, Surgeon General, and FDA, which focus more on the pharmacological effects of the drug.
865. Further reflecting the consensus judgment that nicotine is addictive, the investigation by the FDA leading to its Final Tobacco Rule issued in August 1996 confirmed that even under the stringent criteria employed by the FDA, nicotine in cigarettes is an addictive drug. Henningfield WD, 159:9-161:22. The FDA concluded in its August 1996 Final Rule that, "All major public health organizations in the United States and abroad with expertise in tobacco or drug addiction now recognize that the nicotine delivered by cigarettes and smokeless tobacco is addictive." 1996 FDA Jurisdictional Determination, 61 Fed. Reg. 44619 (August 1996) at xv, VXA1242326-3211 at 2572 (US 64323).
866. Defendants' own expert, Dr. Rowell, not only agreed that nicotine plays an essential role in cigarette smoking, Rowell TT, 3/23/05, 16625:12-25, but that "there is clearly addiction for cigarette smoking." Rowell TT, 3/24/05, 16790:4-16.
867. As the documentary evidence laid out in great detail infra shows, over the last forty years, Defendants have been no stranger to the term "addiction" in reference to smoking. In-house tobacco industry research, research not disclosed to the 1964 Surgeon General's Advisory Committee, showed drug addiction-like effects, including tolerance, withdrawal, compulsive use, and craving. The actions of BATCo and B W, described below, are particularly illuminating on the issue of how far superior the cigarette company Defendants' knowledge of nicotine and its behavioral and pharmacological effects was by 1964, compared to the relatively uninformed conclusion of the Advisory Committee to the Surgeon General who lacked that knowledge and its supporting research. See extended discussion at Section V(B)(3)(c-d), infra.
c. Consequences of the Addictiveness of Nicotine
868. Today, most daily cigarette smokers satisfy the Surgeon General's primary criteria for addiction. First, as to highly controlled or compulsive use, addicted smokers smoke numerous cigarettes — often at least one pack or 20 cigarettes — throughout the day. Second, the nicotine in the cigarette tobacco stimulates the nicotinic receptors in the smoker's brain, producing a psychoactive reaction that affects the smoker's mood. Third, the smoking behavior is reinforced by the pleasurable effects of nicotine and/or by the mitigation of unpleasant withdrawal sensations triggered by the need for nicotine. Benowitz WD, 29:8-30:13.
869. Published research indicates that 77% to 92% of smokers are addicted to nicotine in cigarettes. 1996 FDA Jurisdictional Determination, VXA1242326-3211 at 2335, 2528 (US 64323).
870. Many smokers and potential smokers are unaware of or do not fully appreciate the addictive nature of nicotine, the addictiveness of cigarette smoking, and the extent to which nicotine delivery and dosage are +highly controlled and engineered. Weinstein WD, 61:5-74:2.
871. Every year, an estimated seventeen million people in the United States attempt to quit smoking. Fewer than one and a half million, or 8%, succeed in quitting permanently. Benowitz TT, 11/1/04, 4505:2-4506:13.
872. Most smokers smoke cigarettes regularly in order to experience nicotine's effects on the brain and the body, and thereby become addicted to nicotine. People who try to quit smoking often experience withdrawal symptoms that can be extremely disruptive. Accordingly, it is usually very difficult for the smoker to stop smoking cigarettes. Id., 4503:17-4506:13.
873. Most smokers who desire to quit require several quit attempts before they are successfully able to give up cigarettes, and many smokers die of smoking-related diseases before they are able to quit.Id., 4505:2-4506:13.
874. Most smokers become addicted to smoking as teenagers. 88% of daily smokers tried their first cigarette before reaching age eighteen, and 70% of people who have ever smoked daily began smoking daily before they were eighteen years old. Because the addiction to nicotine develops in the first few years of cigarette smoking, most smokers become addicted to nicotine during adolescence or early adulthood. Benowitz WD, 38:15-39:2, 39:3-5, 9-10.
875. Research shows that 81% of adult smokers said that if they tried to quit for just a day, they experienced strong cravings for cigarettes. Of these, 95% said that the cravings were stronger than what they had expected when they began to smoke. Fewer adolescent smokers — 46% — reported that they would experience strong cravings if they tried to quit. Among those adolescents who said they experienced such cravings, 85% said that the cravings were stronger than what they had expected when they began to smoke. In short, people underestimate the addictive power of nicotine when they first become smokers. Weinstein WD, 66:3-69:19.
876. As for quitting, most smokers give no thought to how long they will smoke when they first begin, apparently believing that quitting is something that can be decided later. By then, addiction makes it extremely difficult to quit. In a large national survey, 24% of youth smokers said they expected to smoke for less than a year, 10% said one to five years, and only 5% said they expected to smoke longer than five years. A much larger proportion, 61%, said they had never thought about it. The corresponding figures for adult smokers were: less than one year — 12%, one to five years — 5%, longer than five years — 7%, and never thought about it — 76%. Id.
877. The Annenberg study, which surveyed 600 fourteen to twenty-two year olds in the forty-eight contiguous states, asked smokers who said that they planned to try to quit in the next year, "If we called you again in a year, would you guess you would have successfully quit smoking?" A very high 83% of youths and 78% of adults said they expected to succeed in their quit attempt. The reality was that only 28% of teenage quitters managed to quit smoking for a year, and only 7% of adults smokers who tried to quit were able to remain cigarette free for a year.Id.
878. In another study, smokers who were planning to quit in the next year, and who had tried and failed in the past, were asked about their next quit attempt. From this group, 88% of youths and 64% of adults said that they would be nonsmokers a year later. Even among those who stated that quitting was very hard or almost impossible for others, 83% of youths and 57% of adults predicted their own success. Id.
879. These studies demonstrate that smokers and nonsmokers agree that quitting is difficult, and that teenage and adult smokers greatly overestimate the likelihood that their own individual quit attempts will succeed. Nearly half of teenage smokers think that quitting will be easy for them even though they think it will be very difficult for their peers. The evidence also indicates that people fail to consider the difficulty of quitting when they start to smoke and do not recognize how strong the cravings produced by addiction can be. In short, people, and youth in particular, have insufficient recognition of how difficult it will be for them to stop smoking even though they may have an intellectual understanding of the medical consequences of smoking. Id.
d. Conclusion
880. As the public health community's understanding of nicotine's pharmacological and behavioral effects on the human body has evolved, so has the terminology used to describe nicotine. The scientific and medical community has struggled with the choice of the proper nomenclature to describe the human affinity for nicotine and has moved from "habituation" to "dependence" to "addiction." Since the mid-1980s, the scientific and medical community has viewed the terms "dependence" and "addiction" as virtually synonymous. In fact, many public health organizations, including NIDA, the American Association of Addiction Medicine, and the College on Problems of Drug Dependence, use the terms "drug addiction" and "drug dependence" interchangeably. Henningfield WD, 110:9-22. Indeed, the tobacco industry itself has used these terms interchangeably. See Section V(B)(3), infra.
881. The Surgeon General chose the term addiction in 1988 in order to effectively convey to the public the severity of smokers' attachment to nicotine, the intense difficulty of breaking that attachment, and the fact that the attachment is physiological and not merely a lack of willpower to stop doing something pleasurable. See Benowitz TT, 11/2/2004 at 4647:4-7, 4647:25-4648:9, 4655:6-4661:21 (JD-054316). In light of these facts, this Court will use "addiction" and "dependence" interchangeably. Disputes over terminology to describe the workings of nicotine should not obscure the reality that Defendants long ago internally recognized the same phenomenon that the scientific and medical community have struggled to understand and describe: the extraordinary hold that nicotine has on the human nervous system and the fact that such hold stems from nicotine's pharmacological properties.
3. Defendants Were Well Aware that Smoking and Nicotine Are Addictive
882. The wealth of documentary evidence examined in this Section, as well as Sections V(C) and (D), reveals that for decades Defendants knew and internally acknowledged that nicotine is an addictive drug, that cigarettes are a nicotine delivery device, and that addiction can be enhanced and perpetuated through manipulating both the amount of nicotine and the method of nicotine delivery. Much of Defendants' knowledge of nicotine was obtained from in-house and industry-funded research into the pharmacological effects of the drug.
883. For example, internal documents reveal that Philip Morris researchers knew in 1969 that nicotine was "a powerful pharmacological agent" and that the company operated on the "premise that the primary motivation for smoking is to obtain the pharmacological effect of nicotine." 1003033413-3417 at 3413 (US 20143); 1003287836-7848 at 7837 (US 22848). RJR's lead nicotine researcher stated in 1972 that nicotine is the "sine qua non of smoking" and that the industry was based on the sale of "attractive dosage forms of nicotine." 500915683-5691 at 5684-5685 (US 20659). BATCo's sophisticated research from the early 1960s demonstrated that "smokers are nicotine addicts." 301083862-3865 at 3863 (US 20577). B W, BATCo's American subsidiary, possessed the BATCo data and marketed cigarettes with the understanding that they "must provide the appropriate levels of nicotine." 501011512-1515 at 1513 (US 85309). Lorillard researchers accepted the scientific consensus in the 1970s that "the most probable reason for the addictive properties of the smoke is the nicotine." 82396938-6939 (US 22012). Liggett, like its larger cigarette manufacturer counterparts, was actively seeking ways to manipulate the nicotine delivery to smokers. LG0262125-2126 (US 59994).
884. Defendants have studied nicotine and its effects since the 1950s. The documents describing their research into and resulting knowledge of nicotine's pharmacological effects on smokers — whether they characterized that effect as "addictive," "dependence" producing or "habituating," — demonstrate unequivocally that Defendants understood the central role nicotine plays in keeping smokers smoking, and thus its critical importance to the success of their industry.
885. Defendants' internal records also demonstrate that they knew that cigarette smoking, and tobacco in particular, were the vehicles for delivering nicotine — the critical component in maintaining the addiction necessary to sustain and enhance their profits. Indeed, Defendants purposefully designed and sold products that delivered a pharmacologically effective dose of nicotine in order to create and sustain nicotine addiction in smokers. Henningfield WD, 87:19-103:13.
886. Other documents demonstrate Defendants' understanding and acceptance of nicotine's role in maintaining cigarette smoking by showing their recognition that smokers adjust their smoking behavior in order to obtain their necessary nicotine intake. This behavioral adaptation of smokers is known as "compensation," or "titration," a concept Defendants have been well aware of for many years. Henningfield WD, 49:14-55:5; Section V(E)(2)(b),infra.
887. These industry documents also support the conclusion that Defendants knew early on in their research that if a cigarette did not deliver a certain amount of nicotine, new smokers would not become addicted, and "confirmed" smokers would be able to quit.
888. The evidence set forth in this Section demonstrates the extensive knowledge Defendants have had since the 1950s about nicotine's addictive effects on smokers, their use of that knowledge to maintain and increase the sale of cigarettes, and their decades-long efforts both to deny the truth about the addictive nature of nicotine and to conceal their own internal research which generated that information.
a. Philip Morris
889. In a September 22, 1959 memorandum, Philip Morris's Vice President for Research and Development, Hugh Wakeham, emphasized the importance of nicotine to smoking, stating: "One of the main reasons people smoke is to experience the physiological effects of nicotine on the human system." 10005039423-9424 (US 21657).
890. In a November 15, 1961 presentation, Wakeham addressed the company's ability to control the nicotine content of its cigarettes. He stated that "low nicotine does stimulate, but high doses depress functions," and "continued usage develops tolerance." Wakeham further stated that: "Even though nicotine is believed essential to cigarette acceptability, a reduction in level may be desirable for medical reasons." 1000277423-7447 at 7438, 7441 (US 20088).
891. On March 5, 1964, William L. Dunn, a Philip Morris scientist/psychologist who later became the Principal Scientist for the company, commented at length on the possibility of developing a "surrogate" for cigarettes based on the importance of nicotine. He wrote:
The pharmacological need [for cigarettes] is readily definable. The smoker seeks the subjective state that results from the introduction of nicotine into the bloodstream. There are some specifiable, some not specifiable changes in the physiological state accruing from the presence of nicotine. . . . There are undoubtedly other physiological reactions which are responsible for the sense of euphoria, or well-being, that the novice smoker experiences in the exaggerated form of dizziness. Without belaboring a most complex and little understood set of phenomena, suffice it to say that it is this subjective state which is sought by the smoker as he lights up.
1003700128-0133 at 0129 (US 20177).
892. In the same document, Dunn also stated that any less hazardous cigarette product developed by Philip Morris "must induce the psychopharmacological state now induced by nicotine absorption into the bloodstream." 1003700128-0133 at 0132 (US 20177).
893. A handwritten summary by Philip Morris researcher Ronald Tamol of a February 1, 1965 brand development meeting/presentation recorded the conclusion that the cigarette manufacturer who could come up with a "flavorful" low tar cigarette with "enough nicotine to keep smokers hooked . . . will reap huge benefits." 0002862-2867 at 2867 (US 88761).
894. In a June 1966 report titled "Market Potential of a Health Cigarette," Philip Morris researchers Dunn and Myron Johnston stated that without nicotine, a health cigarette would not sell:
[A]ny health cigarette must compromise between health implications on the one hand and flavor and nicotine on the other. . . . Flavor and nicotine are both necessary to sell a cigarette. A cigarette that does not deliver nicotine cannot satisfy the habituated smoker and cannot lead to habituation, and therefore would almost certainly fail.
1001913853-3878 at 3860 (US 20123).
895. In a May 7, 1968 Philip Morris memorandum titled "TPN Intake by Smokers," Dunn wrote that "since there is evidence that the smoker adapts his puff, it is reasonable to anticipate that he adapts to maintain a fairly constant daily dosage." Thus, Philip Morris has known for over thirty-five years that smokers would "compensate" in order to maintain a constant intake, or dosage, of nicotine. 1003293548-3555 (US 35743).
896. Philip Morris was well aware that nicotine shared many attributes of an addictive drug. In a February 19, 1969 memorandum from Dunn to Wakeham, Dunn cautioned that nicotine was a drug with FDA implications. He also discussed the "dual action" of nicotine as a drug with pharmacological "stimulant-tranquilizer" effects that caused a "pleasant state of dizziness so clearly experienced by the beginning smoker and by the habituated smoker following abstention." 1003289921-9922 at 9921 (US 20167).
897. In a Fall 1969 draft of the annual report titled "Why One Smokes," and presented to the Philip Morris Board of Directors, Wakeham emphasized the role of nicotine in smoking. He flatly stated:
We share the conviction with others that it is the pharmacological effect of inhaled smoke which mediates the smoking habit. . . .
We have then as our first premise, that the primary motivation for smoking is to obtain the pharmacological effect of nicotine.
In the past we at R D have said that we're not in the cigarette business, we're in the smoke business. It might be more pointed to observe that the cigarette is the vehicle of smoke, smoke is the vehicle of nicotine, and nicotine is the agent of a pleasurable body response. . . .
This primary incentive to smoking gets obscured by the overlay secondary incentives, which have been superimposed upon the habit. Psychoanalysts have speculated about the importance of the sucking behavior, describing it as oral regression. Psychologists have proposed that the smoker is projecting an ego-image with puffing and his halo of smoke. One frequently hears "I have to have something to do with my hands" as a reason. All are perhaps operative motives, but we hold that none are adequate to sustain the habit in the absence of nicotine. . . .
We are not suggesting that the effect of nicotine is responsible for the initiation of the habit. To the contrary. The first cigarette is a noxious experience to the noviate. To account for the fact that the beginning smoker will tolerate the unpleasantness, we must invoke a psychosocial motive. Smoking for the beginner is a symbolic act. The smoker is telling the world, "This is the kind of person I am. . . . "
As the force from the psychosocial symbolism subsides, the pharmacological effect takes over to sustain the habit. . . .
1003287836-7848 at 7837-7839 (US 22848) (emphasis added).
898. In the final version of Wakeham's presentation, dated November 26, 1969, he largely restated material from the draft quoted above. In explaining that nicotine serves as both a stimulant and depressant, Wakeham stated that smoking maintenance depended solely on the pharmacological effects on smokers:
We are of the conviction, in view of the foregoing, that the ultimate explanation for the perpetuated cigarette habit resides in the pharmacological effect of smoke upon the body of the smoker, the effect being most rewarding to the individual under stress.
1000273741-3771 at 3752 (US 26080).
899. Philip Morris also produced a February 16, 1970 Research and Development report titled "Some Methods Notes on the Past Research on Cigarette Smoker Motivation" which acknowledged that the smoking "pattern is strongly resistant to extinction." The report referred to the "puffing act" as an "injection of nicotine." 1003287849-7856 at 7849, 7853-7854 (US 85246).
900. Philip Morris's awareness of nicotine as the crucial ingredient in cigarettes was also made plain in a November 1, 1971 research report written by Thomas Schori and approved by Dunn. The report accepted a 1943 scientific study's results which suggested that a habitual smoker continues to smoke because of the pharmacological effects of nicotine in cigarettes. 1000350158-0188 (US 20176).
901. Notwithstanding its longtime public denials that smoking cessation induces withdrawal — one of the classic hallmarks of addiction — Philip Morris knew the extreme difficulty of quitting and the physical and mental effects of cessation attempts on the smoker. Scientists Dunn and Frank Ryan described some of the withdrawal effects of nicotine in a 1971 study on cessation in the following graphic terms:
Even after eight months quitters were apt to report having neurotic symptoms, such as feeling depressed, being restless and tense, being ill-tempered, having a loss of energy, being apt to doze off. They were further troubled by constipation and weight gains which averaged about five pounds per quitter. . . . This is not the happy picture painted by the Cancer Society's anti-smoking commercial which shows an exuberant couple leaping into the air and kicking their heels with joy because they have kicked the habit. A more appropriate commercial would show a restless, nervous, constipated husband bickering viciously with his bitchy wife who is nagging him about his slothful behavior and growing waistline.
1000348671-8751 at 8676, 8708 (US 20097).
902. With respect to the phenomenon of nicotine "compensation," Schori and Dunn wrote in a January 1972 Report titled "Tar, Nicotine, and Cigarette Consumption" that their research
supports the notion that smokers develop a daily nicotine intake quota and that when smoking cigarettes differing in nicotine delivery from that to which they are accustomed they tend to modify their consumption rate in order to maintain their normal quota. No support was found for the analogous notion of a daily tar intake quota, however.
1003285403-5416 at 5403 (US 20159).
903. In a 1972 "Confidential" research report titled "Motives and Incentives in Cigarette Smoking," Dunn asserted that people smoke in order "to obtain nicotine," and that nicotine "is the industry's product," adding that "without nicotine, the argument goes, there would be no smoking." In the report, Dunn summarized a 1972 CTR-sponsored conference held on the Caribbean island of St. Martin. More commonly known as St. Martin Conference, the meeting was not a secret. Some scientists unconnected to the tobacco industry attended and the proceedings of the conference were published shortly thereafter. (no bates) (JD 040795). Dunn wrote:
The majority of the conferees would go even further and accept the proposition that nicotine is the active constituent of cigarette smoke.
Without nicotine, the argument goes, there would be no smoking. Some strong evidence marshaled to support this argument:
1) No one has ever become a cigarette smoker by smoking cigarettes without nicotine.
2) Most of the physiological responses to inhaled smoke have been shown to be nicotine-related.
2023193286-3304 at 3289 (US 22967); 503654881-4885 (US 88413); 105394371-4388 (US 88414).
904. Most graphically, Dunn urged the industry to adopt the following approach:
Think of the cigarette pack as a storage container for a day's supply of nicotine. . . .
Think of the cigarette as a dispenser for a dose unit of nicotine: it is readily prepped for dispensing nicotine. . . .
Think of a puff of smoke as the vehicle of nicotine. . . .
Smoke is beyond question the most optimized vehicle of nicotine and the cigarette the most optimized dispenser of smoke.
2023193286-3304 at 3290-3291 (US 22967).
905. During a presentation of his paper delivered at St. Martin and at the 1972 CORESTA/TCRC Joint Conference, Dunn summarized his conclusions from current research on why people smoke. Dunn wrote that, "It is contended in this paper that nicotine, specially packed, is the cigarette industry's product." Dunn added that, "The smoker takes nicotine into his system in order to obtain the salutory effects of nicotine upon body function." 1001820498-0500 at 0498 (US 26121); 2021423403-3497 at 3484 (US 36743); 89285181-5188 at 5181 (US 23583).
906. Philip Morris also documented compensation as further evidence of addiction. A March 1973 Philip Morris Research Report titled "Smoking Behavior: Real World Observations," written by Philip Morris scientists Dunn, Thomas Schori and Janet Duggins, reported that a Philip Morris in-house study had shown that, "the smokers in this study are now smoking cigarettes delivering less tar and nicotine than those they smoked in 1968 and that they are smoking both more rod per cigarette and more cigarettes." 1000353355-3410 at 3361 (US 35242).
907. In a May 8, 1974 presentation to Philip Morris USA President Clifford Goldsmith, Dunn explained how in-house research suggested that smokers titrate or regulate their smoke intake to get what they want out of the smoke:
I'm sure you are aware of our belief that people smoke for rewards they get from smoke at the pharmacological level. . . . It's simply not an adequate explanation to say that smoking is a habit, or that it is social behavior. A smoker is introducing something into his system that he wants. Certain components of smoke, most likely nicotine, act upon his system in some undetermined way to give him some undetermined pleasure. If this is true, then we expect the smoker to seek to take in that amount of smoke that does the job best for him. He is going to regulate his intake to suit his need . . . We are hypothesizing that the smoker titrates (regulates) his smoke intake to suit his dosage needs.
100324972-4976 at 4972-4973 (US 85248).
908. Research conducted at the Philip Morris Research Laboratory in June 1974 using high nicotine and low nicotine cigarettes "showed the existence of a definite compensation mechanism" among smokers. According to the report, titled "Human Smoking Habits," these findings were consistent with:
evidence in literature that the nicotine of cigarette smoke exerts a distinct pharmacological effect on the smoker which reinforces the smoking behavior. The smoker doses himself with nicotine according to his personal needs which depend on the level of arousal, external stress, his personality and, possibly, a number of other factors.
1001812883-2903 at 2883 (US 85249).
909. In an undated handwritten memo, probably written in the 1970s, Dunn voices his surprise that the industry could not fully separate nicotine from tar, given what the company knew of nicotine at that time:
It is also remarkable that nicotine delivery has not been liberated from tar delivery, particularly in view of the importance of nicotine as the significant, if not the primary gratification component of the smoke. This is not to say that the task is simple: it is not simple. Consider the ways currently available for altering the nicotine delivery level, with accompanying reasons why these ways do not readily permit independent nicotine variation.
1003285420-5424 at 5420 (US 85250); 2021423403-3497 at 3464 (US 36743).
910. Dunn then listed the methods at Philip Morris's disposal to manipulate nicotine delivery in its products, including air dilution, filtration, nicotine extraction/addition, leaf selection, and base additives to increase pH. 1003285420-5424 at 5421-5422 (US 85250).
911. In March 1975, Helmut Wakeham proposed an industry scientific conference on "The Regulatory Influence of Smoking Upon Human Behavior" to discuss research ideas into the effects of stimulant and calming effects of smoking. LWODJ9056332-6332 (US 87072*); LWODJ9056318-6323 (US 87071).
912. In a May 14, 1975 report evaluating the relationship between a steep short-term decline in sales of Marlboro to a concurrent decline in nicotine, Dunn wrote:
Nicotine has been singled out for attention because many investigators of smoking behavior, including some P.M. R D people, have contended that the seasoned cigarette smoker smokes for the nicotine in the smoke. In view of that contention, the question has been raised as to whether the declining nicotine delivery values reported for Marlboro Red could be responsible for the declining sales increment.
0000024914-4920 (US 26072).
913. In a September 8, 1975 letter to long-time Philip Morris-funded researcher Stanley Schachter, a psychology professor at Columbia University, Dunn discussed a reduction in nicotine in Marlboro cigarettes and acknowledged the existence of smoker's compensation to obtain more nicotine, which he referred to as "the goodies":
Thus to accommodate to the 15% reduction in available Marlboro nicotine, the smoker who was getting 50% of the available nicotine into his blood from the Marlboro delivering 1.3 mg of nicotine into a smoking machine and now must get 59% of what the current Marlboro offers him. He can take bigger puffs, or inhale more from the supply drawn into the mouth (we have varying quantities of residual smoke in the mouth at the end of an inhalation) or for more efficient extraction of the goodies, he can draw it in deeper or hold it in longer.
1000738509-8510 at 8510 (US 85251).
914. Philip Morris funded Schachter's research for many years. However, his studies of nicotine and human behavior led him to eventually conclude that smoking was indeed addictive. He reported to Philip Morris in 1977 that, "We propose instead that virtually all long-time smokers, heavy or light, are addicted and suggest that many, perhaps all, exceptions to the addiction model can be understood in terms of such notions as self-control, concern with health, restraints, etc." 1003291155-1191 at 1189 (US 87074); 1003291151-1153 (US 87075).
915. An October 1, 1975 Philip Morris research memorandum titled "Smoke Impact, Part I: Cigarette Smoking and Heart Rate" stated that: "Nicotine is the main determinant for sustaining the smoking habit" and "there is an optimal dose of nicotine, too little or too much is rejected by tobacco smokers." 1003294245-4261 at 4246 (US 20170).
916. In approximately 1976, Philip Morris researcher Frank Ryan explained why people smoke in terms of habit versus need. In Ryan's view, the habit of smoking was very distinct from the smoker's need for nicotine. In a November 11, 1977 memorandum titled "Smoker Psychology," Ryan described nicotine intake as the "critical mainstay of tobacco consumption," and provided the following background for research to be carried out at Virginia Commonwealth University:
Many of [a smoker's] cigarettes will be smoked out of habit (i.e., will be conditioned responses triggered by external cues) rather than out of any nicotine need (i.e., will be conditioned responses triggered by internal cues). All these cigarettes contribute to the total nicotine in the system, so that a cigarette smoked out of habit will delay the time until a cigarette is smoked out of need.
1003287995-7995 (US 35702) (emphasis in original).
917. In a March 1, 1977 memorandum, Schachter described a smoker as an "addict" who smokes to maintain his nicotine levels:
To the extent that [he is] an addict, he is probably smoking to keep nicotine or one of its active metabolites at some optimal level. If, then, the heavy smoker does switch to low nicotine brands, he may very well end up smoking more cigarettes and taking more puffs of each.
1003724353-4387 at 4353 (US 21887).
918. In a November 29, 1977 memorandum, Philip Morris Director of Science and Technology, Thomas Osdene, discussed his concerns about a presentation made by Dr. Donald H. Ford, a new CTR staff member, which acknowledged that "Opiates and nicotine may be similar in action"; "We accept the fact that nicotine is habituating"; and "There is a relationship between nicotine and the opiates." 1005045000-5000 (US 20194).
919. In a December 19, 1977 interoffice memorandum sent to Osdene, titled "Behavioral Research Accomplishments — 1977," Dunn acknowledged the importance of nicotine for the smoker when he listed as one of Philip Morris's 1977 successes the fact that the company had "shown that [it] can distinguish between regulator and nonregulator smokers and that after being deprived, the regulators do indeed try to make up for lost intake." "Regulators" were defined as smokers who "smoke for nicotine." 1003293322-3330 at 3322, 3324-3325 (US 35741).
920. Aware of nicotine's importance to the company and the industry, Osdene voiced concerns at a meeting with the scientific director of CTR in New York on January 5, 1978. Philip Morris had sent Osdene and Robert B. Seligman, Vice President of Research and Development, to CTR to discuss several contract research programs. One of those programs concerned nicotine antagonists — i.e., drugs which oppose or block the pharmacological and chemical effects of nicotine as opposed to nicotine analogs, which are substitutes for nicotine and interact with the body in the same pharmacological and chemical way. Seligman's comments revealed the importance of nicotine to the future of cigarette manufacturing. According to Osdene's memorandum of the meeting:
Dr. Seligman brought up the grant by Dr. Abood in which one of the stated aims was to make a clinically acceptable antagonist to nicotine. This goal would have the potential of putting the tobacco manufacturers out of business.
1000286213-6214 at 6213 (US 35204); see also 1000041904-1905 (US 35103).
921. In a March 1978 report titled "Exit-Brand Cigarettes: A Study of Ex-Smokers," scientist Frank J. Ryan of the Philip Morris Research Center in Richmond revealed Philip Morris's substantial understanding of the role of nicotine in tobacco use at that time: "We think that most smokers can be considered nicotine seekers, for the pharmacological effect of nicotine is one of the rewards that come from smoking. When the smoker quits, he foregoes his accustomed nicotine. The change is very noticeable, he misses the reward, and so he returns to smoking." 1000368057-8080 at 8060 (US 20098*).
922. In the same March 1978 report, Ryan stated that, "If the industry's introduction of acceptable low-nicotine products does make it easier for dedicated smokers to quit, then the wisdom of the introduction is open to debate." 1000368057-8080 at 8060 (US 20098*) (emphasis in original).
923. In the late 1970s and well into the 1980s, Philip Morris carried out the "Nicotine Program." This major research initiative studied nicotine's effects on the central and peripheral nervous systems, nicotine analogs, and "behavioral effects" of nicotine. 1003033413-3417 (US 20143); 1003289974-9975 (US 21553); 1000125871-5872 (US 34273); 1000127789-7790 (US 34422); 2022150943-0951 (US 85254).
924. Wakeham, having apparently read a review of the Philip Morris Nicotine Program by Dunn, wrote a memorandum of concern to Seligman dated February 22, 1979. While Wakeham disagreed with the program's primary focus on nicotine, he admitted that, "I do not deny that many smokers maintain the habit for psychopharmacological reasons." 1003293238-3239 at 3238 (US 26150).
925. In a February 3, 1979 letter to Philip Morris President and CEO Hugh Cullman titled "The Slow Motion Self-Suicide of the Tobacco Industry," D. Todorovic, a retired Philip Morris International researcher, stressed the negative impact of "cigarette substitutes" on conventional cigarette sales and recommended against their development:
It is obvious that such a tremendous sales gain of "cigarette substitutes" is done at the expense of normal, conventional cigarettes, and there lies all the danger in the near future for the very survival of [the] Tobacco Industry, because these "cigarette substitutes" are unable to make smokers addicts to tobacco. The present smokers of "cigarette substitutes" are the future smoker quitters.
2010064696-4699 at 4697 (US 20303).
926. Ian Uydess, a Philip Morris scientist from 1977 until 1989, stated that Philip Morris knew that a cause and effect relationship existed between market performance and nicotine delivery levels. The declaration also makes clear that nicotine was distinct from taste:
This belief . . . was reflected in many of the comments made at a number of internal meetings at which zero and "ultra low" delivery products were being discussed. Some scientists even predicted that products made with "no" or "too low" a level of nicotine would probably fail in test markets, "no matter what they tasted like."
521102262-2286 (US 30497).
927. There can be no question taste was not the reason that nicotine was used as a necessary component of cigarettes. Philip Morris scientists understood very well that, as far as "taste" was concerned, nicotine, standing alone, had an "acrid burning taste." 2060537042-7045 (US 87077).
928. In a March 21, 1980 memorandum to Dr. Seligman, Dunn described in detail the Philip Morris-directed "Nicotine Receptor Program," a research initiative aimed at "understanding the specific action of nicotine which causes the smoker to repeatedly introduce nicotine into his body." However, Dunn stated cautiously that, "Any action on our part, such as research on the psychopharmacology of nicotine, which implicitly or explicitly treats nicotine as a drug, could well be viewed as a tacit acknowledgment that nicotine is a drug," and, therefore, subject to FDA regulation. 0000127789-7790 at 7789 (US 21794); 2022249518-9518 at 9518 (US 35152); 1000127789-7790 (US 34422).
929. Dr. Dunn also revealed the concerns of the industry's attorneys that the issue of nicotine addiction could enhance the claims of smokers' lawsuits:
The psychopharmacology of nicotine is a highly vexatious topic. It is where the action is for those doing fundamental research on smoking, and from where most likely will come significant scientific developments profoundly influencing the industry. Yet it is where our attorneys least want us to be, for two reasons. It is important to have these two reasons expressed and distinguished from one another. The first reason is the oldest and most implicit in the legal strategy employed over the years in defending corporations within the industry from the claims of heirs and estates of deceased smokers: "We within the industry are ignorant of any relationships between smoking and disease. Within our laboratories no work is being conducted on biological systems." That posture has moderated considerably as our attorneys have come to acknowledge that the original carte blanche avoidance of all biological research is not required in order to plead ignorance about any pathological relationship between smoke and smoker.
1000127789-7790 (US 34422).
930. Dunn pointed out to Seligman that "the acute, transient, short-lived effects of nicotine upon a physiological system" were the "effect sought by the smoker." In the attachment to his memo, Dunn summed up the relationship between his company and nicotine as follows: "PM sells cigarettes. Cigarettes deliver nicotine." 0000127789-7790 at 7789 (US 21794); 1000127791-7792 (US 34422); 2022249518-9518 at 9518 (US 35152).
931. Dunn's memorandum to Seligman was preceded by that of another Philip Morris scientist, James L. Charles, who also provided Seligman an assessment of the "Nicotine Receptor Program" on March 18, 1980. Charles opened his memorandum with the following observations:
Nicotine is a powerful pharmacological agent with multiple sites of action and may be the most important component of cigarette smoke. Nicotine and an understanding of its properties are important to the continued well-being of our cigarette business since this alkaloid has been cited often as "the reason for smoking" and theories have been advanced for "nicotine titration" by the smoker.
100328974-8975 at 8974 (US 87078).
932. Charles had made similar observations about nicotine in an earlier memorandum outlining the Philip Morris Nicotine Program dated December 1, 1978. He stated that his views had not changed in the intervening years. 1003033413-3417 (US 20143).
933. Dunn wrote another memorandum dated March 24, 1980 to Seligman relating to a parallel effort at Philip Morris to create cigarettes with even higher nicotine to tar ratios, stating:
If even only some smokers smoke for the nicotine effect (I personally believe most regular smokers do) then in today's climate we would do well to have a low TPM [total particulate matter, or tar] and CO [carbon monoxide] delivering cigarette that can supply adequate nicotine.
1003285586-5586 (US 22029).
934. In an August 12, 1980 memorandum to the Vice President of Research and company Directors, Thomas Osdene ranked nicotine research — and specifically the Philip Morris Nicotine Program — as one of the company's top Research and Development priorities because "the thing we sell most is nicotine":
Nicotine Program. This program includes both behavioral effects as well as chemical investigation. My reason for this high priority is that I believe the thing we sell most is nicotine.
1003030124-0125 at 0124 (US 26132).
935. Philip Morris's nicotine research program included studies which began before 1980 and continued until 1984 to develop nicotine analogs as part of a purposeful effort to find a nicotine-equivalent drug that would retain nicotine's effects on the brain without nicotine's known adverse cardio vascular and carcinogenic effects. DeNoble WD, 5:7-11; 7:8-13; 1003033413-3417 (US 20143); 1003289974-9975 (US 21553); 1000127789-7790 (US 34422); 2022150943-0951 (US 85254); 2020154437-4437 (US 85266).
936. The premise of the research was that "people smoke primarily because of nicotine's rewarding effects on the brain." This research could then, in theory, assist Philip Morris in removing nicotine from tobacco, substituting the analog that lacked nicotine's adverse cardiovascular effects, and thus produce a "safer" cigarette that still possessed nicotine's reinforcing effects on the smoker. DeNoble WD, 8:10-13; 9:13-16. As Dr. William Farone, who worked for Philip Morris from 1976 to 1984 and was Director of Applied Research, explained, this was the second part of a "two-step process" of internal research, neither of which was pursued by Philip Morris to commercialization. See, Farone TT, 10/7/04, 2023:10-17. (Farone's background is discussed at ¶ 1594, infra.)
937. Philip Morris shared its extensive nicotine and smoking behavior knowledge with BATCo. According to an October 12, 1979 "RESTRICTED" report from BATCo scientist L.C.F. Blackman, he accepted Philip Morris's invitation to visit the Philip Morris Research Center, and was briefed by scientists Osdene, Seligman, and Levy on the company's work, including the development of nicotine alternatives, nicotine discrimination studies, and EEG research. 109877492-7499 (US 87079*).
938. With respect to tolerance, a March 16, 1983 memorandum from Dr. Charles to Dr. Osdene stated that, "We can successfully defend the absence of withdrawal under controlled experiments, but we cannot defend tolerance. Tolerance to nicotine is a well-established fact." 1005061346-1346 (US 20199); 2022252680-2680 (US 36873).
939. Philip Morris's sales director in the United Kingdom, George Mackin, wrote an article for a British tobacconist magazine, dated December 4, 1981, in which he admitted that cigarettes were addictive and that smokers developed tolerance. Mackin wrote that cigarettes were important to overall sales at British convenience stores because:
Cigarettes are not just habit forming — the body builds up a requirement for them. Twenty million smokers cannot do without their weed. Take the example of a man going to work in the morning. It's pouring with rain. There are six cars already parked outside the shop. So, there are at least 90 yards to walk back. Would he stop for a newspaper? Would he get out for a Kit Kat?
The answer is probably No, but he would stop for his fags, because he is addicted to cigarettes. And while he is buying a pack, he takes a morning paper and a Kit Kat.
2501013567-3568 (US 27920); 504336658-6658 (US 85261).
940. The Mackin article caused a stir among several cigarette manufacturers, as well as Shook, Hardy Bacon, when news of his statements became known. However, none of the lawyers who commented on the article disagreed with it. For example, one Philip Morris attorney in Switzerland noted that the Mackin's admissions were only "very unfortunate" and "could cause a lot of problems for us." Another attorney wrote more to the point that "in the product liability context these concepts are important, particularly as regards issues of risk assumption." 024950721-0721 (US 20404); 2501013567-3568 (US 27920); 2024950723-0723 (US 37175); 501626662-6662 (US 85264).
941. Philip Morris knew a significant portion of its customers wanted to quit but could not do so. A March 29, 1985 presentation at a "meeting of top management" was titled "The Perspective of PM International on Smoking and Health Issues." In this presentation, management was told that:
There are some 50 million smokers today in the U.S. I realize that research tells us that the majority of smokers wished they did not smoke and are, therefore, unlikely to be of much help to the industry.
2023268329-8337 at 8331 (US 26784).
942. According to Dr. William Farone, "Defendants have long understood that cigarettes are addictive and that nicotine is the agent in cigarette smoke primarily responsible for addiction. . . ." Farone WD, 72:10-11; Farone TT, 10/07/04, 1984:19-24.
943. Farone stated that "when I was at Philip Morris, there was widespread acceptance internally throughout the company — among executives, scientists, and marketing people — that nicotine was the primary component of tobacco and cigarette smoke responsible for smoker's addiction to smoking." Farone WD, 72:21-73:1.
944. Dr. Farone discussed with other Philip Morris scientists whether smoking was addictive. These discussions revealed "widespread agreement among scientists in R D that smoking is addictive," id. at 74:10-23, and "a widespread conviction that nicotine is the chemical agent delivered by cigarettes that is primarily responsible for addiction to smoking," id. at 75:1-6. This widespread agreement on the addictiveness of smoking came from "both internal and external research, about nicotine and its primary role in keeping people smoking." Id. at 75:17-23.
945. Philip Morris's intensive internal research on nicotine continued into the 1990s. For example, a May 22, 1990 report stamped "PERSONAL AND CONFIDENTIAL" to scientific director Richard Carchman from company chemists/scientists Frank Gullotta, C.S. Hayes, and B.R. Martin reported on the "Stereospecific Effects of Nicotine and Electrophysiological and Subjective Responses." This research contrasted the physiological effects of two forms of nicotine, "d-nicotine" and "l-nicotine," using human smokers. 2025986606-6612 (US 20421).
946. Many other Philip Morris documents reveal the company's in-depth knowledge of nicotine and a desire to exploit nicotine's effects on the human body. 2025986350-6401 (US 87080); 1000385483-5522 (US 87311); 1000221722-1726 (US 87081); 1003290519-0531 (US 87082); 1003287880-7890 (US 20163); 2023069596-9604 (US 87083); 1003294165-4180 (US 87084); 2062951465-1477 (US 87312); 1003292806-2811 (US 87086); 1003295309-5310 (US 87087); 1000128672-8672 (US 87088); 2022163557-3560 (US 87089).
947. A November 8, 1990 Philip Morris memorandum to Research and Development Vice President Cathy Ellis from Frank Gullotta titled "Raison d'etre" stated: "We have shown that there are optimal cigarette nicotine deliveries for producing the most favorable physiological and behavioral responses. Our laboratory has demonstrated that all forms of nicotine are not behaviorally or physiologically equal. This observation is important for evaluating research cigarettes where the addition of nicotine is necessary." 2028813366-3368 at 3366 (US 20430).
948. The Philip Morris Nicotine Program was described in detail in a lengthy 1992 review prepared by outside counsel Shook, Hardy Bacon titled "Philip Morris Behavioral Research Program." In this review, counsel summarized many aspects of the company program, directed by Dunn, and cited specific documents showing a major internal research initiative that began in 1969 and ended abruptly in 1984. 2021423403-3461 at 3408-3409 (US 36743).
949. The Shook, Hardy Bacon document described how Philip Morris Nicotine Program scientists demonstrated tolerance to nicotine, behavioral effects, nervous system effects, and other results consistent with dependence and addiction. 2021423403-3461 at 3440-3443 (US 36743).
950. The 1992 report also made clear that the program generated results and was still generating data in 1984 related to nicotine receptors, analogs, peripheral nervous system effects, central nervous system effects, effects on animal behavior, and differences between high nicotine delivery and low nicotine delivery cigarettes. With respect to the reasons why the Nicotine Program was ended in 1984, the report simply states that: "For reasons never stated in any internal documents, Philip Morris cancelled the Nicotine Program in spring 1984. The decision to cancel the program may have been the result of outside counsel's legal advice." 2021423403-3461 at 3408 (US 36743).
951. A similar 1994 Shook, Hardy Bacon report titled "Philip Morris Research on Nicotine Pharmacology and Human Smoking Behavior" reviewed and detailed much of the material described in the 1992 review. For example, the 1994 report summarized Dr. DeNoble's research showing that nicotine and acetaldehyde were synergistically reinforcing: "It was DeNoble's experience with acetaldehyde that it condensed in the brain to form Dopamine-like compounds and made the animal somewhat 'euphoric.'" 2046819241-9265 at 9249 (US 85265*). See extended discussion of this topic in Sections V(B)(5)(a)(¶¶ 1299-1301) and V(C)(2)(e)(¶¶ 1695-1700).
952. The 1994 report also described how DeNoble was able to demonstrate both "behavioral tolerance" and "metabolic tolerance" to nicotine, other important aspects of addiction. 2046819241-9265 at 9250-9251 (US 85265*).
953. The report later noted that "additional research on nicotine/acetaldehyde synergism may have shown that cigarettes were in fact addictive." The Shook, Hardy Bacon lawyers who prepared this report after reviewing their client's documents wrote: "Laboratory Shutdown [CAVEAT: Significance is self-evident.]" 2046819241-9265 at 9254, 9256-9258 (US 85265*). Drs. DeNoble and Mele described the research objectives and projects undertaken by the Philip Morris Behavioral Research Program in the 1970s and 1980s. DeNoble WD; Mele WD. In addition, the planning, findings, and significance of Dr. DeNoble's research in particular are described in numerous Philip Morris documents. 1002973585-3615 (US 35632*); 2056145924-5927 (US 87090); 1003293284-3293 (US 85252); 1003060443-0503 (US 87091); 1003582081-2082 (US 35826); 1002973179-3180 (US 87092); 1001894698-4705 (US 87093); 1000052405-2413 (US 87094); 1000017985-8021 (US 87095); 1003293138-3144 (US 87096); 1000017375 (US 85258); 1003060638-0643 (US 87099); 1003186849-6854 (US 87101); 1000128665-8667 (US 87102); 1000128662-8663 (US 87103); 1000128664-8664 (US 87104); 1000128668-8671 (US 87105); 1003293241-3243 (US 87106); 1003293216-3217 (US 87107); 1000413881-3964 (US 20100); 1003198459-8461 (US 20156); 1003720350-0352 (US 87108); 2047340075-0079 (US 87109); 2022955358-5361 (US 87110); 2022955501-5502 (US 87111); 2057069742-9769 (US 88762).
954. Philip Morris Planning Director Barbara Reuter prepared an analysis of the company's plans to market an alternative nicotine delivery product under the code name "TABLE" in 1993. The 20-page plan, dated October 1992 and stamped "CONFIDENTIAL," stated the following in the "Background" section:
Different people smoke cigarettes for different reasons. But, the primary reason is to deliver nicotine into their bodies. Nicotine is an alkaloid derived from the tobacco plant. It is a physiologically active nitrogen containing substance. Similar organic chemicals include nicotine, quinine, cocaine, atropine, and morphine. While each of these substances can be used to affect human physiology, nicotine has a particularly broad range of influence.
During the smoking act, nicotine is inhaled into the lungs in smoke, enters the bloodstream and travels to the brain in about eight to ten seconds. The nicotine alters the state of the smoker by becoming a neurotransmitter and a stimulant. Nicotine mimics the body's most important neurotransmitter, acetylcholine (ACH), which controls heart rate and message sending within the brain. The nicotine is used to change psychological states leading to enhanced mental performance and relaxation. A little nicotine seems to stimulate, while a lot sedates a person. A smoker learns to control the delivery of nicotine through the smoking technique to create the desired mood state. In general, the smoker uses nicotine's control to moderate a mood, arousing attention in boring situations and calming anxiety in tense situations. Smoking enhances the smoker's mental performance and reduces anxiety in a sensorially pleasurable form.
2020154466-4486 at 4467 (US 26722); 2020154437-4437 (US 85266).
955. Altria General Counsel Murray Bring acknowledged the addictiveness of smoking in a July 31, 1992 internal memo on PMC letterhead to William Campbell and Bill Murray which discussed recent research on cocaine, and posed these questions from then — PM CEO Michael Miles: "First, how do we stay up to date on the state of smoking cessation technology; second, what effect would a reliable, readily available "habit breaker" have on our business; and third, what — if any — contingency plans should we be making now?" 2074091232-1232 (US 27480).
956. An October 2, 1992 memorandum from Philip Morris scientist Dr. Carolyn Levy to William Campbell reviewed the efficacy of nicotine patches coupled with behavioral therapy to achieve smoking cessation success. Levy stated that the company was almost ready with an alternative nicotine delivery device. She concluded that, "This suggests that at the very least we should have contingency plans for a change in the predominant form of nicotine usage. . . . If these circuits do mediate nicotine intake and they could be blocked, then it is possible that cigarettes' appeal would decline." 2023012974-2975 (US 36943).
b. R.J. Reynolds
957. Many documents indicate that R.J. Reynolds also had a sophisticated understanding of nicotine's role in smoking. For example, on November 16, 1967, RJR scientist Eldon D. Nielson responded to an inquiry about a nicotine inhibitor patent saying that the tobacco companies would not want such an item, as they were "selling a nicotine effect, not fighting it." 502001177-1177 (US 29547).
958. In 1971, RJR scientist Anders H. Laurene internally proposed that the company undertake research into determining more precisely the "habituating level of nicotine." Laurene asked the question, "How low can we go?" 504210018-0018 (US 50577); 522598277-8277 (US 80744).
959. In a March 28, 1972 memorandum regarding the development of new products, RJR scientist Claude Teague stated that for the typical smoker, "nicotine satisfaction is the dominant desire" and that "[i]n designing any cigarette product, the dominant specification should be nicotine delivery." 5002504536-4544 at 4538 (US 21747); Langenfeld TT, 3/14/05, 15309:20-15310:4.
960. Claude Teague was the RJR equivalent/counterpart to William Dunn at Philip Morris. In an April 14, 1972 report titled "Research Planning Memorandum on the Nature of the Tobacco Business and the Crucial Role of Nicotine Therein," Teague stated:
In a sense, the tobacco industry may be thought of as being a specialized, highly ritualized and stylized segment of the pharmaceutical industry. Tobacco products, uniquely, contain and deliver nicotine, a potent drug with a variety of physiological effects. . . . Nicotine is known to be a habit-forming alkaloid, hence the confirmed user of tobacco products is primarily seeking the physiological "satisfaction" derived from nicotine — and perhaps other active compounds. His choice of product and pattern of usage are primarily determined by his individual nicotine dosage requirements and secondarily by a variety of other considerations including flavor and irritancy of the product, social patterns and needs, physical and manipulative gratifications, convenience, cost, health considerations and the like. Thus a tobacco product is, in essence, a vehicle for delivery of nicotine, designed to deliver the nicotine in a generally acceptable and attractive form. Our industry is then based upon design, manufacture and sale of attractive dosage forms of nicotine, and our Company's position in our Industry is determined by our ability to produce dosage forms of nicotine which have more overall value, tangible or intangible, to the consumer than those of our competitors.
500915683-5691 at 5684-5685 (US 20659).
961. Teague later stated in his report that:
If nicotine is the sine qua non of tobacco products and tobacco products are recognized as being attractive dosage forms of nicotine, then it is logical to design our products — and where possible, our advertising — around nicotine delivery rather than 'tar' delivery or flavor. To do this we need to develop new data on such things as the physiological effects of nicotine, the rate of absorption and elimination of nicotine delivered in different doses at different frequencies and by different routes, and ways of enhancing or diminishing nicotine effects and "satisfactions."
500915683-5691 at 5685-5686 (US 20659) (emphasis in original).
962. Teague also answered the industry's often-heard "nicotine is for taste" argument by stating that, "I believe that for the typical smoker nicotine satisfaction is the dominant desire, as opposed to flavor and other satisfactions." 500915683-5691 (US 20659).
963. Later in the same report, Teague noted the vital role of nicotine to the fundamental existence of the cigarette industry:
If, as proposed above, nicotine is the sine qua non of smoking, and if we meekly accept the allegations of our critics and move toward reduction or elimination of nicotine from our products, then we shall eventually liquidate our business. If we intend to remain in business and our business is the manufacture and sale of dosage forms of nicotine, then at some point we must make a stand.
500915683-5691 at 5688 (US 20659) (emphasis in original).
964. At the close of his April 14, 1972 memorandum on nicotine, Teague recommended the following courses of action for RJR:
1. Recognize the key role of nicotine in consumer satisfaction, and design and promote our products with this in mind.
2. More precisely define the minimum amount of nicotine required for 'satisfaction' in terms of dose levels, dose frequency, dosage form, and the like. This would involve biological and other experiments.
3. Sponsor in-depth studies of the physiological, psychological and other effects of nicotine, aimed at demonstrating the beneficial effects of nicotine and at disproving allegations that nicotine produces major adverse effects.
4. Study, design and evaluate new or improved systems for delivery of nicotine which will provide the minimum satisfying amount of nicotine in attractive form, free of allegedly harmful combustion products.
5. Study means for enhancing nicotine satisfaction via synergists, alteration of pH, or other means, to minimize dose level and maximize desired effects.
6. Monitor developments in materials and products which may compete with nicotine products or which might be combined with nicotine products to provide added advantages or satisfactions.
7. Monitor work by others which might be aimed at improved nicotine delivery systems of the type proposed here.
8. Search for and evaluate other physiologically active components of tobacco or its smoke which may provide desired effects to the smoker.
500915683-5691 at 5690-5691 (US 20659).
965. In 1973, at the request of RJR President William D. Hobbs, Teague prepared a "SECRET" report titled "Implications and Activities Arising From Correlation of Smoke pH with Nicotine Impact, Other Smoke Qualities, and Cigarette Sales." Teague reiterated to company executives RJR's knowledge of the importance of effective nicotine delivery in its competition with Marlboro and Kool:
In essence, a cigarette is a system for delivery of nicotine to the smoker in attractive, useful form. At "normal" smoke pH, or at below about 6.0, essentially all of the smoke nicotine is chemically combined with acidic substances, hence is non-volatile and relatively slowly absorbed by the smoker. As the smoke pH increases above about 6.0, an increasing proportion of the total smoke nicotine occurs in "free" form, which is volatile, rapidly absorbed by the smoker, and believed to be instantly perceived as nicotine "kick". . . .
As a result of its higher smoke pH, the current Marlboro, despite a two-thirds reduction in smoke "tar" and nicotine over the years, calculates to have essentially the same amount of "free" nicotine in its smoke as did the early WINSTON. . . .
In addition to enhancing nicotine "kick," increasing the pH (increasing alkalinity) of smoke above about 6.0 causes other changes, particularly when the increase in smoke pH is achieved by adding ammonia to the blend.
509314122-4148 at 4125 (US 20828*).
966. Teague wrote a "Confidential" memorandum, dated February 2, 1973, titled "Some Thoughts About New Brands of Cigarettes for the Youth Market." In this memorandum, Teague contrasted novice smokers with "confirmed" smokers. He stated that while "pre-smokers" and "learners" start smoking for psychological reasons (fitting in with the crowd, self-image, boredom relief), "once the 'learning' period is over, the physical effects become of overriding importance and desirability to the confirmed smoker, and the psychological effects, except the tension-relieving effect, largely wane in importance or disappear." 502987357-7368 at 7359 (US 21475).
967. In an August 4, 1976 speech to RJR's international division, Director of Research, Murray Senkus, affirmed the indispensable role of nicotine, stating, "In smoking the effect produced on the human body is ascribable to nicotine" and "Without any question, the desire to smoke is based on the effect of nicotine on the body." 501525355-5366 at 5356, 5358 (US 29531).
968. In a RJR August 1976 "Three-Year Action Plan for New Products," nicotine was described as a "traditional need," and "very basic to the cigarette industry's existence." 500672011-2172 at 2078-2105, 2107 (US 20645).
969. In a September 21, 1976 internal RJR memorandum from John L. McKenzie to A.P. Ritchy titled "Product Characterization Definitions and Implications," nicotine was defined as "the psychopharmacological agent in tobacco which is one of the key factors in satisfaction. . . ." 500380562-0564 at 0563 (US 20630).
970. A November 9, 1976 memorandum on nicotine circulated among RJR scientists reviewed the known physiological effects of nicotine on the body and acknowledged the company's ongoing desire to increase or hold steady the nicotine content of its cigarettes while reducing tar. The memo, titled "Nicotine Research," also acknowledged tolerance to nicotine: "Habituated smokers, both male and female, metabolize nicotine more rapidly than non-smokers, indicating the bodily metabolic acclimation to nicotine." The memo contradicted industry claims that smokers seek nicotine only as a matter of "taste": in-house studies concluded that detectable nicotine produced the taste described as "foul, rotten rubber" and that "Nicotine is definitely an irritant in smoke and its taste must be blended out or modified by other constituents in the TPM to make smoke acceptable." 509078812-8820 at 8814-8815 (US 85271).
971. In a February 7, 1978 memorandum titled "Nicotine Satisfaction — Consumer Test," RJR researchers C.L. Neumann and J.P. Dickerson stated that the focus of the consumer satisfaction program would be on nicotine, as it was "probably the most important satisfaction variable," and because nicotine had "known physiological activity." 504479948-9954 at 9549 (US 20729).
972. In another example, a February 5, 1980 interoffice memorandum from H.E. Guess stated the concern that the reduced level of nicotine in RJR's Winston B Cigarettes would make them less attractive to Winston smokers. 504675307-5307 (US 21549).
973. RJR scientist D.H. Piehl reviewed the scientific literature on nicotine and maintenance of the smoking habit in a "Confidential" internal paper for the company titled "Smoking Behavior — A Review." In his paper, Piehl summarized with approval many studies which described the preeminent importance of nicotine to smokers, the various "need" levels of nicotine, nicotine dependence, and addiction. 504972347-2362 at 2362 (US 50710).
974. Scientists at RJR had known for years that most smokers get "hooked" and are unable to quit. Teague wrote a memorandum dated December 1, 1982 to Research and Development Vice President Robert DiMarco in which he stated that RJR needed to tailor its marketing to the reality that "most of those who have smoked for any significant time would like to stop," and most smokers "would stop using if they could." Teague also stated that RJR needed to contemplate the future scenario where smokers who want to stop can stop; if this happened, he wrote, RJR would "go out of business." Therefore, RJR "cannot be comfortable marketing a product which most of our consumers would do without if they could." 500898255-8257 at 8256 (US 48652).
975. An undated RJR document, written after 1984, titled "R D Outline" listed "Nicotine as a drug" as a topic for departmental discussion. The outline provided for a "discussion of a string of industry memos and reports, dating back to at least the early 1970's, in which industry scientists and execs seem to admit to nicotine's qualities as a drug." The document described several examples, including a 1971 B W letter, a 1972 RJR report and a 1972 Philip Morris summary of a meeting of industry scientists. 522606315-6317 at 6316 (US 85273).
976. Like Philip Morris, RJR documented smoker compensation. An April 15, 1983 RJR draft document titled "Smoker Compensation Review" reiterated the company's knowledge that smokers of low tar/nicotine products compensated to obtain more nicotine, and that the FTC method of measuring nicotine was flawed. The document included the following in a section titled "Impact of Known Compensatory Behavior On Cigarette Rankings":
Based on the results of studies similar to those summarized above, it has been stated that low — "tar" smokers use their cigarettes differently than smokers of higher — "tar" products. Different "usage" includes propensity to block vents or otherwise manipulate the cigarette, increasing the number of puffs and the number of cigarettes smoked, puffing more frequently or with larger volumes and inhaling more deeply or holding smoke in the lungs longer. These usage patterns are consistent with the theory that low — "tar" smokers seek to maintain a given nicotine level in the body, regardless of the cigarette. The patterns cited are instances which would tend to increase the "dosage" of nicotine to the smoker.
This statement reveals both RJR's continuing view of smokers as "nicotine seekers" who alter their smoking method to obtain the necessary "dosage" of nicotine, as well as its comprehensive understanding of the compensation phenomenon. 501524500-4514 at 4506 (US 85272).
977. In another undated RJR document written sometime after 1978, a Biobehavioral Department presentation titled "Biobehavioral Aspects of Smoking," the speaker discussed how "maintenance" of the smoking habit for 80% of smokers was related to the "tranquilizing effects" of nicotine. The speaker emphasized at various points that "nicotine is the substance people desire in their use of tobacco," "animals will self-administer nicotine in a laboratory setting," evidence that "smokers smoke to maintain a constant level of nicotine in the body," and that "the fact remains that smokers do not continue to smoke unless their cigarettes contain nicotine." 517214547-4557 (US 87113*).
978. After Dr. Benowitz published his 1983 groundbreaking paper on compensation by smokers of low nicotine yield products, see Benowitz WD, 67:10-18, RJR scientist John Robinson wrote a critique of the paper to Dr. Alan Rodgman in which he stated:
The paper itself expresses what we in Biobehavioral have felt for quite some time. That is, smokers smoke differently than the FTC machine and may very well smoke to obtain a certain level of nicotine in their bloodstream. If a given level of nicotine in the blood is the final goal of a smoker, one would predict that he would smoke an FFT [full flavor tar] and ULT [ultra low tar] cigarette differently.
510994429-4429 (US 85274).
979. Robinson wrote that the Benowitz paper brought to mind a past industry study comparing German Camel cigarettes with Marlboro cigarettes, where "smokers apparently obtained almost exactly the same amount of nicotine no matter which of the four cigarettes they smoked." Robinson recalled that the study "was one of the first indications that smokers may in fact smoke to obtain a certain level of nicotine in their bloodstream." 510994429-4429 (US 85274).
980. In preparation for an RJR "brainstorming session" at the company's Flavor and Biobehavior Divisions, Donald L. Roberts told employees in an October 13, 1983 memorandum that, "The functions a cigarette serves are many fold involving social, psychological and physiological. A short definition is that a cigarette supplies nicotine to the consumer in a palatable and convenient form." Roberts clearly distinguished nicotine from taste, stating that, "The cigarette's taste is a relatively unimportant benefit of smoking. Its taste is primarily a delivery vehicle[.]" 503602711-2714 at 2712 (US 85275).
981. In a June 3, 1985 RJR document titled "Report on Medical and Scientific Issues — Addiction," the scientist authors attempted to examine current scientific literature to assist the industry with respect to the scientific consensus on nicotine addiction. As part of their review, the scientists reviewed literature compiled by the tobacco law firms of Jacob, Medinger Finnegan, Shook, Hardy Bacon, and Jones Day. The scientists wrote in their report that, "Both Mr. Wrobleski [Jacob, Medinger Finnegan] and Mr. Sirridge [Shook, Hardy Bacon] warned, however, that there is very little literature favorable to the industry's position on addiction." 515878492-8522 at 8494. (US 30251).
982. RJR's R D department embarked on a large-scale nicotine research program in 1988, described in a lengthy October 7, 1988 project report titled "An Integrated Research Program for the Study of Nicotine and Its Analogs." Its purpose was to continue looking into the "pharmacological potency," "biological activity," and central nervous system effects of nicotine and nicotine analogs. The researchers posited that:
What is known about nicotine is that it elicits the typical consequences of sympathoadrenal activation when administered in doses that produce plasma concentrations similar to those achieved during smoking. Among these are tachycardia, increases in blood pressure, cardiac output, and stroke volume. . . . In addition, there is a fair amount of tolerance induced with regard to sympathetic activation by smoking or chronic nicotine administration.
514894567-4676 at 4586-4587 (US 20862).
983. A May 3, 1991 RJR Research and Development report described a tobacco modification and nicotine manipulation project code-named the "REST Program." One key objective of the Program was to "Independently control nicotine delivery, from very low to elevated levels, to address consumer wants and as a research tool." The basis for the Controlled Nicotine Process component of "REST" was that
We are basically in the nicotine business. It is in the best long term interest for RJR to be able to control and effectively utilize every pound of nicotine we purchase. Effective control of nicotine in our products should equate to a significant product performance and cost advantage.
509479574-9587 at 9577, 9584 (US 20829).
984. According to the Wall Street Journal, former RJR Nabisco CEO F. Ross Johnson candidly admitted during a 1994 interview that, "Of course it's addictive. That's why you smoke the stuff." Wall Street Journal, Big Spender Finds a New Place to Spend, October 6, 1994. WAS0491982-1985 (US 61440).
985. In a 1998 memorandum titled "ECLIPSE Taste and Satisfaction Improvements," D.E. Townsend stated that R D staffs were "encouraged to pursue diligently Eclipse designs with increased nicotine yield in an effort, in part, to increase consumer acceptance of the product." He later added: "If increased nicotine yield helps give improved consumer acceptance in the market, then possible benefits of this potentially reduced risk product would be greater." 526013569-3569 (US 85276); 700245849-5849 (US 85277).
986. In an August 10, 1985 memorandum titled "Smoking and Health Litigation, Tactical Proposals," RJR's lawyers at Jones Day recognized that their client had long since acknowledged the addictiveness of nicotine and smoking. 680712261-2337 at 2308 (US 87114). They also observed that:
"Addiction" has received little industry research attention. Nevertheless, many industry documents support the contention that there are types of persons whose psychological profile and smoking behavior is such that they have great difficulty in quitting. For example, documents describe a British American Tobacco Company sponsored conference in 1978, attended by PM and B W representatives. One of the findings of the conference was: "Serious smokers smoke to prevent withdrawal symptoms. Another study which Dr. Piehl (RJRT) cites recognizes "addictive" smokers: "People who find it unbearable to run out of cigarettes are described as using addictive-type smoking." The industry has also recognized that some smokers, especially smokers of high nicotine cigarettes "compensate" or regulate nicotine intake if it is lowered in individual cigarettes.
681879254-9715 at 9302-9303 (US 21020).
987. In the same Jones Day memorandum, the authors provide examples from Defendants' files where the companies (with emphasis on RJR) and their employees admit the primacy of nicotine to cigarettes and the addictiveness or dependence-producing quality of their products. 681879254-9715 at 9601-9643 (US 21020).
c. BATCo
988. Many documents disclose that BATCo had an intimate understanding of nicotine's role in smoking, as well as its effects on smokers long before the medical and public health community reached a similar level of sophistication. Moreover, many BATCo documents disclose how BATCo and other Defendants, in particular B W, used BATCo's knowledge of nicotine for commercial gain.
989. BATCo knew that nicotine was an essential component of cigarettes as early as the 1950s. A June 1959 BATCo internal document pointed out that the company must consider "the question of nicotine and its effect on the smoker." The author stated that the company had to choose between maintaining current nicotine content "in order to maintain the firmly entrenched nicotine habit developed by the majority of smokers," or reducing the nicotine content to meet consumer demand for lower nicotine products. However, the writer cautioned that
To lower nicotine too much might end up destroying the nicotine habit in a large number of consumers and prevent it from ever being acquired by new smokers.
100099115-9117 at 9117 (US 20112); Henningfield WD, 88:21-89:10.
990. In a November 15, 1961 memorandum reviewing secret nicotine research and development projects, Sir Charles Ellis, scientific advisor to the BAT Board of Directors, acknowledged BATCo's understanding that nicotine is addictive:
Experiments of Hippo have led to a great increase in our knowledge of the effects of nicotine. . . . Smoking demonstrably is a habit based on a combination of psychological and physiological pleasure, and it also has strong indications of being an addiction. It differs in important features from addiction to other alkaloid drugs, but yet there are sufficient similarities to justify stating that smokers are nicotine addicts.
301083862-3865 at 3863 (US 20577).
991. In the same 1961 internal document reviewing BATCo's secret nicotine research, Ellis emphasized the company's need to determine exactly what made smoking and nicotine addictive:
If the competition is to be met successfully, it must be important to know how the tranquilizing and stimulating effects of nicotine are produced and the relation of addiction to the daily nicotine intake. These are the reasons for proposing that Project Hippo be continued with the particular object of finding the causes of the pleasurable physiological effects and the causes of addiction.
301083862-3865 at 3863 (US 20577).
992. As early as February 13, 1962, Sir Charles Ellis provided an overview of the company's massive nicotine research program in a "Private and Confidential" memorandum titled "The Effects of Smoking." Ellis recited in his memorandum that BATCo research into the "physiological and psychological effects of smoking" being conducted by Battelle Laboratories began in 1959, and was carried out in the intervening years under various project "code names" including "MAD HATTER I," "MAD HATTER II," "MAD HATTER III," "HIPPO I," "HIPPO II," and "ARIEL." 301083820-3835 at 3820-3824 (JE 46579).
993. In the February 13, 1962 memorandum, Ellis devoted a lengthy section to the commercial importance of the company's nicotine research objectives. He explained that the reason BATCo commissioned the "MAD HATTER" and "HIPPO" research projects was "to understand addiction . . . [and to] appreciate the strength and vulnerability of our position." Ellis wrote further in detail:
However, the force of the habit or the strength of addiction is not such as to give any grounds for complacency in the face of alternative methods of stimulating the body to meet stress, and that is just where the danger lies since alternatives are becoming available. In the last few years there has been a quite remarkable increase in the production of tranquilliser drugs, and while most of these need a doctor's prescription there is already one on free sale in Switzerland (Librium made by Hoffman LaRoche). If such drugs become more freely available they will compete with nicotine, which is a natural tranquilliser, and will leave smoking primarily dependent on its psychological effects for the maintenance of the habit.
What we need to know above all things is what constitutes the hold of smoking, that is, to understand addiction. . . .
These are the reasons for the study of the physiological effects of nicotine carried out under the MAD HATTER and HIPPO contracts, and they have sufficient force alone to justify this expenditure. . . .
301083820-3835 at 3826-3827 (JE 46579).
994. Ellis described in another section of his memorandum the outcome of BATCo's efforts to learn about nicotine and its role in smoking. He further delineated some of the concrete conclusions which the BATCo research had reached, reiterating unequivocally that BATCo believed nicotine was addictive and explaining graphically the relationship of the research to addiction:
As a result of these various researches we now possess a knowledge of the effects of nicotine far more extensive than exists in published scientific literature. It is indeed so extensive and represents so much new thought that it is not easy to condense the material of these several reports and working papers without over-simplification.
Nicotine, however administered, rapidly gets into the blood stream and the lymph system, and once there has a number of varied effects. . . . By far the most important effect is that of mobilising the resources of the body to resist stress. That this occurs has been known from the earliest days of smoking but no explanation exists in the published literature. Battelle [Laboratories] have now carried out experiments which are beginning to show how nicotine enters into the mechanism of this vital reaction. . . .
The stimulation to resist stress occurs almost immediately on absorption of nicotine, and the effect — that is, the extra supply of cortico steroids in the blood — falls off markedly within a matter of thirty minutes. Addiction is something quite different from this since it is well known that the craving for nicotine in a confirmed smoker who stops smoking persists for ten, twenty or thirty days.
We believe that we have found possible reasons for addiction in two other phenomena that accompany steady absorption of nicotine.
301083820-3835 at 3828-3829 (JE 46579).
995. The two additional "phenomena" that Ellis referred to in his February 1962 memorandum were responsible for nicotine addiction were tolerance and withdrawal:
Experiments have so far only been carried out with rats, but with these it is found that certain rats become tolerant to repeated doses and after a while show the usual nicotine reactions but only on a very diminished scale. The interesting point is that these tolerant or nicotine-conditioned rats are found to have a greatly enhanced power of detoxification of nicotine in their liver. Crudely put, they can stand up to high continuous doses of nicotine just because their liver has developed the ability to dispose of it more rapidly and efficiently. . . . As long as the smoker keeps to his normal regime and the nicotine level in his blood remains high there is a steady job for these [liver] enzymes, and the whole situation is normal and under control. But if now the smoker stops smoking and there is no longer nicotine in his blood then in the liver there is this supply of enzymes with nothing to work on. In fact, they proceed to work on other material passing through the liver, with consequent disturbance of the body's working and with all sorts of alarm signals sent back to the brain. The effects of unbalanced enzymes is not unlike unbalanced nicotine, and the abstaining smoker experiences physiological reactions as acute as a novice who starts smoking. When to this one adds the longing for that immediate stimulation to resist stress that comes from smoking a cigarette it would appear that we are making progress towards understanding addiction. . . .
Thus we have already greatly increased our knowledge of the manifold ways in which nicotine affects the body and, in particular, have identified and studied separately the stress resisting mechanism and the other effect on the liver which we believe is responsible for addiction.
301083820-3835 at 3829-3830 (JE 46579).
996. In the final section of his paper, Ellis discussed some particulars of the nicotine projects code-named "PROJECT HIPPO II" and "PROJECT ARIEL." He stated that the secret "physiological and biochemical" PROJECT HIPPO research "should lead to an understanding of the mechanism which creates addiction" and confirm that "addiction depended on the enzymes involved in the metabolism of nicotine in the liver." 301083820-3835 at 3832 (JE 46579). While BATCo did not submit this work to the 1964 Surgeon General's Advisory Committee, some Battelle research, on dependence to nicotine developing in stressed but not unstressed rats, was submitted and cited in the 1964 Report. (no bates) (JD 032048); (no bates) (US 64591 at 125). See also Section V(B)(5)(f).
997. "PROJECT ARIEL" was a secret project to develop an alternative nicotine delivery device to compete with work that Ellis believed was being carried out at the American Tobacco Company and RJR. Ellis also justified the project with his concern that the "drug industry" could "at any time attempt to invade the cigarette smoke field by alternative drugs." He stated that the final product "must have within it the ultimate possibilities of meeting the psychological demands of smokers as well as the physiological ones." 301083820-3835 at 3833-3835 (JE 46579).
998. The concluding section of Ellis' memorandum revealed the high level of secrecy accorded the company's nicotine research:
FUTURE POLICY.
For good reasons the results of Battelle's work have been kept at a high level of secrecy, but they are now building up to such a comprehensive picture of the action of nicotine that I suggest they should soon be made available in detail to a few of our top scientists.
301083820-3835 at 3835 (JE 46579).
999. Thus, as early as 1962, BAT had reached the internal corporate conclusion that smoking was an addiction produced by nicotine, and met the requisite criteria in terms of cravings, compulsive use, physiological effects on the body, tolerance, and withdrawal. In a paper presented to a 1962 BAT conference in Southampton, England, attended by B W representatives, Sir Charles Ellis openly stated that "smoking is a habit of addiction." Ellis's presentation was preceded by an introduction from the chairman of BAT, A.D. McCormick. The substance of the conference was included in a BAT conference report titled, "Smoking and Health — Policy on Research," produced from B W files. 650344433-4493 (US 53468).
1000. McCormick told attendees at the 1962 conference that the "best way to deal with the [smoking and health] matter was on an industry rather than an individual company level." He then introduced Ellis. In his presentation, Ellis stated:
Smoking is a habit of addiction that is pleasurable; many people, therefore, find themselves sub-consciously prepared to believe it must be wrong.
650344433-4493 at 4439 (US 53468).
1001. Ellis later added:
One result of the recent public discussions on smoking and health must have been to make each of us examine whether smoking is just a habit of addiction or has any positive benefits. It is my conviction that nicotine is a very remarkable beneficent drug that both helps the body to resist external stress and also can as a result show a pronounced tranquillising effect. . . . Nicotine is not only a very fine drug, but the techniques of administration by smoking has considerable psychological advantages and a built-in control against excessive absorption.
110070785-0842 (US 20270); 650344433-4493 at 4450-51 (US 53468).
1002. In January 1962, Battelle scientists working for BATCo submitted their "Final Report on Project HIPPO I." The purposes of the project were to study: (1) the action of nicotine in the diuresis mechanism; (2) the possible interference of nicotine in the "stress" mechanism; (3) the inhibiting effect of nicotine on body weight; and (4) the possible activity of nicotine on other hypothalamic functions. The report stated in the introduction the working question: "It is an everyday experience to each smoker that smoking a cigarette helps mastering the numerous stressful stimuli of modern life. This effect is probably one of the most powerful reasons which make one smoke. How does nicotine exert this action?" 105620620-0683 at 0622-0625 (US 20247).
1003. The "HIPPO I" researchers concluded that:
From all our data it seems that the effect of nicotine in the "stress reaction" is a very prominent and very complicated one. The understanding and thorough investigation of this effect seems of the greatest importance: it is by this very effect that nicotine acts as a "tranquilliser."
105620620-0683 at 0683 (US 20247).
1004. At about this same time, Battelle drafted a January 3, 1962 research proposal regarding "Project Ariel" for BATCo in London. According to the proposal, the proposed new smoking device would administer nicotine while "avoiding the well-known disadvantages inherent in actual cigarette smoking," but it needed to resemble a tobacco smoking product "to avoid interference with the legislation in force about drugs," and "it should also create addiction in the same relative amounts." 100335808-5816 at 5811, 5814 (US 20173).
1005. Throughout the 1960s, BATCo continued to discuss and research the Ariel product that was known simply as a nicotine delivery device that would allow the smoker to "obtain a satisfying dose of nicotine" without any of the harmful effects from smoke. 100335894-5918 at 5897 (US 20174).
1006. By 1964, BATCo had developed the prototype of Ariel which allowed for "a reasonably even release of nicotine" for the smoker. 100175613-5617 at 5616 (US 20115).
1007. BATCo continued its Project HIPPO for several years. In a March 1963 study titled "Final Report on Project HIPPO II," scientists C.H. Kaselbach and O. Libert reported the results of their sophisticated comparison of nicotine to tranquilizers, a comparison that built on the earlier findings of HIPPO I. Their report to BATCo stated at the outset that:
The aim of the whole research "HIPPO" was to understand some of the activities of nicotine — those activities that could explain why cigarette smokers are so fond of their habit. It was also our purpose to compare these effects with those of the new drugs called "tranquillizers," which might supercede tobacco in the near future. . . . The reasons for the "pleasure of smoking" must be found partly in the relief of anxiety that cigarette smoking brings so constantly, and in such a very short time.
105620569-0605 at 0572 (US 20246).
1008. Later in the "Final Report on Project HIPPO II," the researchers revealed their conclusion that while nicotine differs in some respects from tranquilizers, nicotine causes both tolerance and addiction, and is in fact addictive:
A quantitative investigation of the relationship with time of nicotine — and of some possible brain mediators — on adreno-corticotropic activity could give us the key to the explanation of both phenomena of tolerance and of addiction, in showing the symptoms of withdrawal.
105620569-0605 at 0575 (US 20246).
1009. Having obtained a clear understanding of the fundamental issue that nicotine was addictive, BATCo researchers targeted and sought to understand the actual mechanism of addiction. In a May 30, 1963 report titled "A Tentative Hypothesis on Nicotine Addiction," Dr. G. Haselbach and Dr. O. Libert, scientists performing work for BATCo, discussed nicotine's ability to produce tolerance and postulated a sophisticated explanation for nicotine addiction:
The hypothalamo-pituitary stimulation of nicotine is the beneficial mechanism which makes people smoke; in other words, nicotine helps people cope with stress. In the beginning of nicotine consumption, relatively small doses can perform the desired action. Chronic intake of nicotine tends to restore the normal physiological functioning of the endocrine system, so that ever-increasing dose levels of nicotine are necessary to maintain the desired action. Unlike other dopings, such as morphine, the demand for increasing levels is relatively slow for nicotine.
In a chronic smoker the normal equilibrium in the corticotropin releasing system can be maintained only by continuous nicotine intake. . . . If nicotine intake, however, is prohibited to the chronic smokers, the corticotropin-releasing ability of the hypothalamus is greatly reduced, so that these individuals are left with an unbalanced endocrine system. A body left in this unbalanced status craves for renewed drug intake in order to restore the physiological equilibrium. This unconscious desire explains the addiction of the individual to nicotine. . . .
In conclusion, a tentative hypothesis for the explanation of nicotine addiction would be that of an unconscious desire to restore the normal physiological equilibrium of the corticotropin-releasing system in a body in which the normal functioning of the system has been weakened by chronic intake of nicotine.
536480912-0914 at 0912, 0914 (US 20928).
1010. In a 1963 research report titled "The Fate of Nicotine in the Body," BATCo researchers reported their conclusions as to nicotine pharmacology and mechanisms of tolerance and addiction. The scientists emphasized that nicotine was a key part of "tobacco habituation and/or addiction" and that the tobacco industry should focus its future research on the effects of nicotine in the bodies of smokers:
There is increasing evidence that nicotine is the key factor in controlling, through the central nervous system, a number of beneficial effects of tobacco smoke, including its action in the presence of stress situations. In addition, the alkaloid appears to be intimately connected with the phenomenon of tobacco habituation (tolerance) and/or addiction. Detailed knowledge of these effects of nicotine in the body of smokers is therefore of vital importance to the tobacco industry, not only in connection with their present standard products, but also with regard to future potential uses of tobacco alkaloids.
501012199-2255 at 2202 (US 21562).
1011. BATCo also participated in the nicotine research carried out at the Huntington Research Centre in Huntington, England. A scientific study prepared by Huntington for either BATCo or Imperial Tobacco is described in an undated report from the late 1960s titled "Effects of Nicotine on Electrocortical Activity and Acetylcholine Release from the Cerebral Cortex of the Squirrel Monkey." In this report, researchers stated at the outset that, "The habitual use of tobacco may be related to numerous factors amongst which the pharmacological effects of nicotine on the central nervous system figure dominantly." The report then went on to describe the complex and significant effects of nicotine on acetylcholine release in animal brains, and stated that "The doses of nicotine used in these experiments are based on the reported smoking dose." 680050472-0485 (US 53985).
1012. Another "Confidential" Huntington in-depth study focusing on nicotine's drug-like effects on the primate brain was titled "Effects of Nicotine on the Central Nervous System." This study was addressed to Imperial Tobacco, and a copy was forwarded to BATCo. The authors of this study explained the tests they planned to conduct to understand how nicotine affects "physiological processes and behavioural functions of the central nervous system of the primate" and described some preliminary results 680050504-0521 (US 53986).
1013. BATCo was also provided nicotine research funded by its Australian affiliate, BATAS. For example, BATCo had knowledge of a 1970 University of Melbourne study titled "The Absorption and Effects of Nicotine from Inhaled Tobacco Smoke." The Australian study program assessed nicotine blood levels and physiological effects, the transfer of nicotine to the blood, and the absorption of nicotine in the mouth. 680050575-0589 (US 53987).
1014. BATCo scientists understood that the addictive impact and potential of nicotine is enhanced by the speed at which, and form in which, it reaches the brain. An August 7, 1964 memorandum from H.D. Anderson, Vice President of Research and Development, to BATCo President, Sir Richard P. Dobson, discussed the enhancement of nicotine "kick" through the addition of potassium carbonate to tobacco:
There seems no doubt that the "kick" of a cigarette is due to the concentration of nicotine in the blood-stream which it achieves and this is a product of the quantity of nicotine in the smoke and the speed of transfer of that nicotine from the smoke to the blood-stream.
Nicotine is in the smoke in two forms as free nicotine base (think of ammonia) and as a nicotine salt (think of ammonium chloride) and it is almost certain that the free nicotine base is absorbed faster into the blood-stream. Thus the effect of this potassium carbonate treatment, even though it does reduce the total quantity of nicotine in the smoke, may be to enhance the effect of what is left until it is equal or maybe greater in physiological effect than in the original smoke.
100059066-9067 at 9067 (US 20102).
1015. A 1966 internal tobacco industry report issued by BATCo scientist I.W. Hughes also emphasized that the effects of nicotine on the human body were a function of the speed at which nicotine reaches the brain and the form it takes:
It would appear that increased smoker response is associated with nicotine reaching the brain more quickly. . . . On this basis, it appears reasonable to assume that the increased response of a smoker to the smoke with a higher amount of extractable nicotine may be either because the nicotine reaches the brain in a different chemical form or because it reaches the brain more quickly.
00039304-9490 at 9306, 9310 (US 34187).
1016. In a March 2, 1967 memorandum from BATCo Chief Scientist S.J. Green to Deputy Chairman Desmond Hobson, Green broadly evaluated BATCo scientific research. With respect to nicotine, he reported the following:
Work on the psychopharmacology and pharmacology of nicotine is accelerating. There is now no doubt that nicotine plays a large part in the action of smoking for many smokers. It may be useful, therefore, to look at the tobacco industry as if for a large part of its business is the administration of nicotine (in the clinical sense). . . . The main objective of our research is to make the administration of nicotine better by . . . making the administration pleasanter or more convenient.
WAS0433494-3500 at 3497 (US 86690).
1017. In a March 20, 1967 document titled "First Meeting with U.S. Company Lawyers," R.M. Macrae, Tobacco Research Council assistant director and BATCo employee, recalled that at the March 8, 1967 meeting, representatives from the United Kingdom made the point that "the major section in the U.K. industry believes that nicotine content of cigarettes should not be greatly lowered if consumer acceptance is to be maintained." 301080659-0662 at 0661 (US 22896).
1018. In fact, "consumer acceptance" was tied to addiction, a word that company executives and directors continued to use internally to describe the necessity of nicotine to smokers. According to the report of the October 1967 BATCo (Group) Research and Development Conference in Montreal, one of the company's research "assumptions" was that, "[t]here is a minimum necessary level of nicotine. Smoking is a habit attributable to nicotine. The form of nicotine affects the rate of absorption by the smoker." And later in the conference report, the BATCo R D department stated the following as research objectives:
The development of low T.P.M. [total particulate matter, or tar], normal nicotine cigarettes should continue. In this connection, the use of filter additives . . . might be helpful since it might render the nicotine more available to the smoker.
The development of a low T.P.M., low nicotine cigarette should be expanded. This raises the question of the level of nicotine required. . . .
100051950-1963 at 1952, 1957 (US 85279).
1019. The BATCo R D Conference report also acknowledged that the department's general objectives included "insur[ing] the continuation of the industry and the prosperity of the company within the industry," and "sustaining and increasing the profits of the company." Thus, even the scientists realized and accepted the link between nicotine and the future of both the company and the industry. 100051950-1963 at 1955 (US 85279).
1020. The minutes of a BAT Group Research Conference held at Hilton Head, South Carolina, from September 24-30, 1968, recorded similar statements. The conference group, which included representatives of B W as well, noted that:
In view of its pre-eminent importance, the pharmacology of nicotine should continue to be kept under review and attention should be paid to the possible discovery of other substances possessing the desired features of brain stimulation and stress-relief without direct effects on the circulatory system. The possibility that nicotine and other substances together may exert effects larger than either separately (synergism) should be studied and if necessary the attention of the Marketing Departments should be drawn to these possibilities.
682633150-3156 at 3152 (US 54206).
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