BLUE CROSS & BLUE SHIELD OF N.J. v. PHILIP MORRIS

No. 98 CV 3287.

36 F.Supp.2d 560 (1999)

BLUE CROSS AND BLUE SHIELD OF NEW JERSEY, INC., and its subsidiary, Medigroup of New Jersey, Inc. (d/b/a HMO Blue); Associated Hospital Service of Maine (d/b/a Blue Cross and Blue Shield of Maine), and its subsidiaries, Machigonne, Inc. (d/b/a Benefit Management of Maine) and Benefit Management, Inc.; BCBSD, Inc. (d/b/a Blue Cross Blue Shield of Delaware); Blue Cross and Blue Shield of Florida, Inc., and its affiliates, Health Options, Inc. and Capital Group Health Services of Florida, Inc. (d/b/a Capital Health Plan); Bluecross Blueshield of Georgia, Inc., and its affiliate, HMO Georgia, Inc.; Blue Cross and Blue Shield of Massachusetts, Inc.; Blue Cross Blue Shield of Michigan; Blue Cross & Blue Shield of Mississippi, a Mutual Insurance Company, and its affiliates, HMO of Mississippi, Inc., Employer Benefits Administrators, Inc., and Bluebonnet Life Insurance Company; Bluecross Blueshield of North Carolina; Blue Cross & Blue Shield of Rhode Island, and its subsidiary, Coordinated Health Partners, Inc.; Blue Cross and Blue Shield of South Carolina, and its subsidiaries, Companion HealthCare Corporation and Preferred Health Systems, Incorporated; Blue Cross and Blue Shield of Vermont; California Physicians' Service (d/b/a Blue Shield of California), and its affiliates, CareAmerica-Southern California, Inc., CPIC Life Insurance Company, and CareAmerica Life Insurance Company; Carefirst of Maryland, Inc.; Empire Blue Cross and Blue Shield; Group Hospitalization & Medical Services, Inc. (d/b/a Blue Cross Blue Shield of the National Capital Area); Louisiana Health Service & Indemnity Company, Inc. (d/b/a Blue Cross and Blue Shield of Louisiana); Mountain State Blue Cross & Blue Shield, Inc., and its subsidiary, Parker Benefits, Inc. (d/b/a Super Blue HMO); New Hampshire-Vermont Health Service (d/b/a Blue Cross Blue Shield of New Hampshire), and its subsidiaries, Matthew Thornton Health Plan, Inc., Matthew Thornton Insurance, Inc., and Health Initiatives, Inc.; New York Care Plus Insurance Company, Inc., (d/b/a Blue Cross and Blue Shield of Western New York, Blue Shield of Northeastern New York); Trigon Insurance Company (d/b/a Trigon Blue Cross Blue Shield), and its affiliates, Physicians Health Plan, Inc., HealthKeepers, Inc., Priority Health Care, Inc., Peninsula Health Care, Inc., Trigon Administrators, Inc., and Mid-South Insurance Company; and Excellus, Inc., and its subsidiaries, The Finger Lakes Companies, Inc. (and its subsidiaries, Finger Lakes Health Insurance Company, Inc. and Finger Lakes Medical Insurance Company, Inc.), Excellus of Central New York, Inc. (and its subsidiary Excellus Health Plan, Inc.), and Upstate Holding Company, Inc. (and its subsidiary, Utica-Watertown Health Insurance Co., Inc.), Plaintiffs, v. PHILIP MORRIS, INCORPORATED; R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; B.A.T. Industries P.L.C.; British American Tobacco Company, Ltd.; Lorillard Tobacco Company; Liggett Group, Inc.; Liggett & Myers Inc.; United States Tobacco Company; The Tobacco Institute, Inc.; The Council For Tobacco Research — U.S.A., Inc.; The Smokeless Tobacco Council, Inc.; Hill and Knowlton, Inc.; and Unknown Corporations A-Z, Defendants.

United States District Court, E.D. New York.

March 30, 1999.


Attorney(s) appearing for the Case

Dewey Ballantine LLP, New York, N.Y. by Paul J. Bschorr, Vincent R. Fitzpatrick, Jr. Michael C. Hefter, Heather K. McDevitt, for Plaintiffs.

Wachtell, Lipton, Rosen & Katz, New York, N.Y. by Steven M. Barna, Michael A. Charish, and Swidler Berlin Shereff Friedman, LLP, New York, N.Y. by Joseph F. Donley, for Defendant Philip Morris, Incorporated.

Sedgwick, Detert, Moran & Arnold, New York, N.Y. by David M. Covey, for Defendants Brown & Williamson Tobacco Corporation.

Greenberg Traurig, New York, N.Y. by Alan Mansfield, and Shook, Hardy & Bacon, L.L.P., Kansas City, MO by Shannon L. Spangler, Lisa A. Lukaszewski, for Defendants Lorillard Tobacco Company, Lorillard, Inc., and Loews Corp.

Debevoise & Plimpton, New York, N.Y. by Sean Morris, for Defendant Council for Tobacco Research, U.S.A., Inc.

Skadden, Arps, Slate, Meagher & Flom LLP, New York, N.Y. by Arthur Aizley, for Defendant United States Tobacco Company.

Jacob, Medinger & Finnegan, LLP, New York, N.Y. by David R. Crittenden, for Defendant Smokeless Tobacco Council, Inc.

Howard, Rice, Nemerovski, Canady, Falk & Rabkin, San Francisco, CA by Peter J. Busch, for Defendants R.J. Reynolds Tobacco Co., and RJR Nabisco, Inc.

Simpson Thacher & Bartlett by Steven R. Rosenblatt, for Defendant British American Tobacco (investments) limited (formerly known as British-American Tobacco Company Limited).


MEMORANDUM AND ORDER

WEINSTEIN, Senior District Judge.

I.   INTRODUCTION ......................................................... 564
II.  COMPLAINT ............................................................ 565
     A. RICO .............................................................. 565
     B. FEDERAL ANTITRUST ................................................. 566
     C. STATE LAW CLAIMS .............................................

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