Reports that Matter

United States v. Philip Morris USA Inc.: Amended Final Opinion

TIRC/CTR

Section 42 of 129

TIRC/CTR

  1. 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 See United States' Preliminary Proposed Findings of Fact at 14. -11- (D.D.C. Oct. 30, 2000).

  2. 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).

  3. 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).

  4. 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).

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  1. 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.

  2. 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.

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

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.