| Schedule of Tobacco Related Cases Pending Against Company |
The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 3, 2020, February 4, 2019 and February 9, 2018:¹ | | | | | | | | Type of Case | | Number of Cases Pending as of February 3, 2020 | | Number of Cases Pending as of February 4, 2019 | | Number of Cases Pending as of February 9, 2018 | Individual Smoking and Health Cases | | 50 | | 55 | | 57 | Smoking and Health Class Actions | | 10 | | 10 | | 11 | Health Care Cost Recovery Actions | | 17 | | 16 | | 16 | Label-Related Class Actions | | — | | 1 | | 1 | Individual Label-Related Cases | | 5 | | 7 | | 1 | Public Civil Actions | | 2 | | 2 | | 2 |
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| Schedule of Verdicts and Post Trial Developments |
The table below lists the verdict and significant post-trial developments in the four pending cases where a verdict was returned in favor of the plaintiff: | | | | | | | | | | Date | | Location of
Court/Name of
Plaintiff | | Type of
Case | | Verdict | | Post-Trial
Developments | February 2004 | | Brazil/The Smoker Health Defense Association | | Class Action | | The Civil Court of São Paulo found defendants liable without hearing evidence. In April 2004, the court awarded “moral damages” of R$1,000 (approximately $233) per smoker per full year of smoking plus interest at the rate of 1% per month, as of the date of the ruling. The court did not assess actual damages, which were to be assessed in a second phase of the case. The size of the class was not defined in the ruling. | | Defendants appealed to the São Paulo Court of Appeals, which annulled the ruling in November 2008, finding that the trial court had inappropriately ruled without hearing evidence and returned the case to the trial court for further proceedings. In May 2011, the trial court dismissed the claim. In March 2017, plaintiff filed an en banc appeal to the Superior Court of Justice. In addition, the defendants filed a constitutional appeal to the Federal Supreme Tribunal on the basis that plaintiff did not have standing to bring the lawsuit. Both appeals are still pending. |
______ ¹ Includes cases pending in Canada. | | | | | | | | | | Date | | Location of
Court/Name of
Plaintiff | | Type of
Case | | Verdict | | Post-Trial
Developments | May 27, 2015 | | Canada/Conseil Québécois Sur Le Tabac Et La Santé and Jean-Yves Blais
| | Class Action | | On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Blais class on liability and found the class members’ compensatory damages totaled approximately CAD 15.5 billion (approximately $11.7 billion), including pre-judgment interest. The trial court awarded compensatory damages on a joint and several liability basis, allocating 20% to our subsidiary (approximately CAD 3.1 billion including pre-judgment interest (approximately $2.34 billion)). The trial court awarded CAD 90,000 (approximately $67,980) in punitive damages, allocating CAD 30,000 (approximately $22,660) to our subsidiary. The trial court ordered defendants to pay CAD 1 billion (approximately $755.3 million) of the compensatory damage award, CAD 200 million (approximately $151.1 million) of which is our subsidiary’s portion, into a trust within 60 days. | | In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “Stayed Litigation — Canada” for further detail.) |
| | | | | | | | | | Date | | Location of
Court/Name of
Plaintiff | | Type of
Case | | Verdict | | Post-Trial
Developments | May 27, 2015 | | Canada/Cecilia Létourneau
| | Class Action | | On May 27, 2015, the Superior Court of the District of Montreal, Province of Quebec ruled in favor of the Létourneau class on liability and awarded a total of CAD 131 million (approximately $99 million) in punitive damages, allocating CAD 46 million (approximately $34.7 million) to RBH. The trial court ordered defendants to pay the full punitive damage award into a trust within 60 days. The court did not order the payment of compensatory damages.
| | In June 2015, RBH commenced the appellate process with the Court of Appeal of Quebec. On March 1, 2019, the Court of Appeal issued a decision largely affirming the trial court's decision. (See “Stayed Litigation — Canada” for further detail.) |
| | | | | | | | | | Date | | Location of
Court/Name of
Plaintiff | | Type of
Case | | Verdict | | Post-Trial
Developments | August 5, 2016 | | Argentina/Hugo Lespada | | Individual Action | | On August 5, 2016, the Civil Court No. 14 - Mar del Plata, issued a verdict in favor of plaintiff, an individual smoker, and awarded him ARS 110,000 (approximately $1,825), plus interest, in compensatory and moral damages. The trial court found that our subsidiary failed to warn plaintiff of the risk of becoming addicted to cigarettes. | | On August 23, 2016, our subsidiary filed its notice of appeal. On October 31, 2017, the Civil and Commercial Court of Appeals of Mar del Plata ruled that plaintiff's claim was barred by the statute of limitations and it reversed the trial court's decision. On November 28, 2017, plaintiff filed an extraordinary appeal of the reversal of the trial court's decision to the Supreme Court of the Province of Buenos Aires. |
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