• Contact Eric Woolson (515-281-3150) or Bob Brammer (515-281-6699)

DES MOINES. The State of Iowa has filed a lawsuit seeking to recover millions of dollars in restitution and damages from tobacco companies and their research associations, Governor Terry Branstad and Attorney General Tom Miller said today in a joint announcement at the State Capitol in Des Moines.

In a suit filed by Miller, the State alleges that the defendants violated Iowa's Consumer Fraud Act by "repeatedly and systematically misleading the public" about the health dangers of smoking and failing to disclose the addictive qualities of nicotine. The suit seeks restitution and civil penalties on the consumer fraud count.

The suit also asks the court to order the defendants to pay the State millions of dollars in restitution for costs the State paid to provide health care and other services to citizens and employees as a result of tobacco-related diseases, illnesses and injuries resulting from "the defendants' wrongful conduct and unlawful activities. "

Branstad said he supports the lawsuit. "Approximately one in five deaths -- more than 400,000 people each year -- are attributed to smoking," he said. "for too long, taxpayers have footed the bill for the immense strain that smoking has caused on our health care system. With this suit, we are seeking justice."

About 5,000 Iowans died from smoking-related illnesses last year. According to the suit, the State of Iowa spends millions of dollars each year for health care, facilities and services for indigents and other eligible residents and employees with tobacco-related diseases. The suit seeks to recover those taxpayer costs, mostly paid by Medicaid.

"This is a law enforcement issue about the conduct of the tobacco companies," Miller said. "It's similar to many other consumer fraud lawsuits we have filed over the years. We allege that the defendants engaged in deception, false promises, omissions, concealment and unfair practices in their sale of tobacco products. "

The 100 page lawsuit painstakingly argues that the tobacco defendants "have known for decades of the lethal dangers of smoking their cigarettes, "from as early as the 1930s -- and that the basic elements of the "industry strategy of deception are intact today."

Miller said, The suit is lengthy, but what we allege is simple: Cigarette manufacturers have known for decades that nicotine is addicting, and that their products cause cancer, other diseases, and death. Yet they have made every effort to hide from the public their own research that shows this, and to misrepresent the facts about smoking, health and addiction. "

Branstad noted that the suit cites State Department of Public Health estimates that almost one in four of Iowa's 725,000 children under age 18 are expected to start smoking "Thirty thousand Iowa children are already smoking, and more than a third of them are daily smokers who illegally consume about three million packs of cigarettes per year, " Branstad said. To be sure, tobacco's long-term health and economic damages extend beyond current smokers."

The suit asks the court to curtail the promotion and sale of tobacco products to minors in Iowa.

"The lawsuit is a huge undertaking Miller said. "We have spent months assembling all the legal and financial resources and preparing the suit, and the suit itself probably will take several years. The tobacco defendants have a reputation for fighting these suits hard. We are very grateful for the support of Gov. Branstad and others."

Miller said at least four Iowa health-related organizations have stepped forward to contribute to the litigation expenses. Blue Cross and Blue Shield of Iowa has pledged $50,000 a year for up to four years. The Iowa Medical Society, Iowa Hospitals and Health Systems, and Iowa Health Systems each have pledged $5,000 per year.

The State Executive Council also approved using outside counsel set to work with Miller's Office on the case. Five law firms will participate: Dickinson, Mackaman, Tyler & Hagen, P.C., Des Moines; Ralph Walker Law Firm, P.C, Des Moines; Simmons, Perrine Albright & Ellwood PLC, Cedar Rapids; Hawkins & Norris, Des Moines and Ness, Motley, Loadholt, Richardson & Poole, Charleston, S.C . By using the law firms who will also absorb up-front costs to fund the litigation the State will avoid out-of-pocket costs.

Miller said taxpayer funds would not be needed for the suit, and his office would not need to add additional staff, thanks to the outside counsel and the generous financial contributions of the Iowa health groups. If the State prevails, it would ask the court to require the tobacco companies to pay for the cost of litigation, Miller said.

Miller and Branstad were surrounded at the State Capitol announcement by members of the "Tobacco-Free Action Team" coalition, or T-FACT made up of advocates from the American Cancer Society, American Heart Association, American Lung Association, and others. Miller said he planned to undertake other tobacco initiatives in legislation, enforcement, and citizen education, especially efforts to deter Iowa youth from taking up tobacco.

Branstad and Miller were scheduled to visit other cities Wednesday to announce the lawsuit and speak to citizens about tobacco issues: Davenport, Cedar Rapids, Mason City, Sioux City, and Council Bluffs.

The lawsuit was filed in Polk County District Court. The lawsuit is in State court and is independent from suits filed previously by attorneys general in other states.

Defendants named in the lawsuit are: R.J. Reynolds Tobacco Company; RJR Nabisco, Inc.; The American Tobacco Company; American Brands, Inc; Brown & Williamson Tobacco Corporation; B.A.T. Industries, PLC; Batus Holdings, Sac.; British American Tobacco Company, Ltd.; British-American (Holdings) Ltd.; Philip Morris, Incorporated (Philip Morris U.S.A.); Philip Morris Companies, Ine.; Liggett & Myers, Inc.; Liggett Group, Inc.; The Brooke Group, Limited; Lorillard Tobacco Company; Lorillard Incorporated; Loews Corporation; United States Tobacco Company; UST, Inc.; The Council for Tobacco Research; The Tobacco Institute, Inc.; and Hill & Knowlton, Inc.