The Florida Supreme Court lifted a huge burden from
tobacco companies when it threw out a record $145
billion punitive damage award against them even though
it agreed the companies had misled smokers about the
dangers of lighting up.
The court also ruled individual smokers could sue the
companies, and gave plaintiffs a potent legal weapon by
upholding the trial jury's finding that the companies
had negligently misled the public about the dangers and
addictive nature of cigs.
The court, which deemed the July 2000 award
excessive, also approved an appellate court ruling that
it had been a mistake to certify the lawsuit as a
class-action representing an estimated 300,000 to
700,000 Floridians made ill by smoking.
Tobacco stocks jumped on the news that the court had
rejected an award that the industry said was potentially
ruinous. Shares of Altria Group, parent of the biggest
U.S. cigarette maker Philip Morris USA, trose $4.43 to
at $77.76 after briefly rising to a 52-week high of
$79.10.
A fight on his hands
Just as GM chairman/CEO Rick Wagoner's turnaround
plan is starting to take hold, analysts say he now has
to fight to keep it going and perhaps save his career.
The battle begins today when GM's board meets via
teleconference to discuss a plan from dissident
shareholder and billionaire Kirk Kerkorian that would
link GM with Renault and Nissan.
Although GM officially says it will study the
proposal from Tracinda Corp. and judge it objectively,
industry analysts and dealers who know Wagoner say he
probably is building a coalition to fight Kerkorian.
29.5M Merrill settlement
Merrill Lynch agreed to pay $29.5 million to Enron
and to drop $73.7 million in bankruptcy claims to settle
a suit claiming it contributed to the energy trader's
collapse.
Under the agreement, Merrill will still be able to
argue in bankruptcy court that Enron owes it about $10
million.
Apple MacBook gains fans
Apple Computer's latest laptop looks sleek, runs
fast and should give makers of Windows-based notebooks
considerable cause for concern, analysts said.
The MacBook, which replaces Apple's iBook consumer
notebooks, is the last of the mobile Macs to make the
switch to Intel chips that have powered Windows PCs for
years.
With extra software, the newer Macs can run
Microsoft's Windows as well as Apple's Mac OS X. It has
a starting price of $1,099.
AP
Originally
published on July 7, 2006
