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GROUP HEALTH PLAN, INC. v. PHILIP MORRIS, INC.

Nos. Civ. 98-1036 (PAM/JGL), 99-1739 (PAM/JGL).

86 F.Supp.2d 912 (2000)

GROUP HEALTH PLAN, INC., a nonprofit Minnesota health maintenance organization; HealthPartners, Inc., a nonprofit Minnesota health maintenance organization; Plaintiffs, v. PHILIP MORRIS INCORPORATED; R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; British-American Tobacco Company Limited; Lorillard Tobacco Company; Liggett Group, Inc.; United States Tobacco Company; Hill & Knowlton, Inc.; The Tobacco Institute, Inc.; and the Smokeless Tobacco Council, Inc.; Defendants. Medica, a nonprofit Minnesota health maintenance organization and subsidiary of Allina Health System, Plaintiff, v. Philip Morris Incorporated; R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; British-American Tobacco Company Limited; Lorillard Tobacco Company; Liggett Group, Inc.; United States Tobacco Company; Hill & Knowlton, Inc.; The Tobacco Institute, Inc.; and the Smokeless Tobacco Council, Inc.; Defendants.

United States District Court, D. Minnesota.

January 25, 2000.

Attorney(s) appearing for the Case

Lawrence Zelle, Lawrence T. Hofmann, Richard Michael Hagstrom, Zelle Hofmann Voelbel & Gette, Minneapolis, MN, Lewis A. Remele, Jr., Gregory Paul Bulinski, Bassford Lockhart Truesdell & Briggs, Minneapolis, MN, for Group Health Plan, Inc., HealthPartners, Inc.

Lewis A. Remele, Jr., Gregory Paul Bulinski, Bassford Lockhart Truesdell & Briggs, Minneapolis, MN, for Medica.

Peter W. Sipkins, Robert A. Schwartzbauer, Mark John Ginder, Dorsey & Whitney, Minneapolis, MN, Michael R. Geske, Arnold & Porter, Washington, DC, Michael P. Carlton, VonBriesen & Purtell, Milwaukee, WI, Jack L. Lipson, David Eggert, Arnold and Porter, Washington, DC, Eric L. Dobberteen, Maurice A. Leiter, James L. Layden, Arnold & Porter, Los Angeles, CA, James Scarboro, Thomas Stoever, Alfred T. McDonnell, Arnold & Porter, Denver, CO, William Maledon, Osborn Maledon, Phoenix, AZ, for Philip Morris Inc.

James Stuart Simonson, Jonathan M. Redgrave, Gray Plant Mooty Mooty & Bennett, Minneapolis, MN, Jeffrey J. Jones, Jones Day Reavis & Pogue, Columbus, OH, Robert Klonoff, Jones Day Reavis & Pogue, Washington, DC, for R. J. Reynolds Tobacco Co.

Jack Michael Fribley, Lori Ann Wagner, Faegre & Benson, Minneapolis, MN, Kenneth Bass, Karen DeSantis, Richard A. Rice, Kirkland & Ellis, Brown & Williamson Tobacco Corp., Washington, DC, for Brown & Williamson Tobacco Co.

Kyle E. Hart, Richard G. Jensen, Fabyanske Westra & Hart, Minneapolis, MN, Kathy McFarland, Mary Elizabeth McGarry, Brian Lake, Ronald M. Neumann, Joseph McLaughlin, Jill C. Owens, Simpson Thacher & Bartlett, New York, NY, for B.A.T. Industries, P.L.C.

John Walter Getsinger, Leonard Street and Deinard, Minneapolis, MN, Amy Hendricks, Greenville, SC, Steven Vollins, New York, NY, for British American Tobacco Co. Ltd., BAT (U.K. & Export) Ltd.

David George Martin, Rider Bennett Egan & Arundel, Minneapolis, MN, Jeffrey S. Nelson, Susan D. Wolfe, J. Patrick Sullivan, Shook Hardy & Bacon, Kansas City, MO, Elizabeth Hoene Martin, Stillwater, MN, for Lorillard Tobacco Co.

Robert V. Atmore, Steven D. Kelley, Reuben A. Mjaanes, Lindquist & Vennum, Minneapolis, MN, for Liggett Group, Inc.

Richard Gary Mark, Diane M. Helland, Eric J. Rucker, Briggs & Morgan, Minneapolis, MN, for U.S. Tobacco Co.

Joseph T. Dixon, Jr., Neil M. Kliebenstein, Henson & Efron, Minneapolis, MN, Marc Rachman, Bruce M. Ginsburg, Davis & Gilbert, New York, NY, for Hill & Knowlton, Inc.

Robert Lawrence Purdy, Kirk O. Kolbo, Maslon Edelman Borman & Brand, Minneapolis, MN, Steven Klugman, Steve Michaels, Debevoise & Plimpton, New York, NY, for Council for Tobacco Research-USA, Inc.

George W. Flynn, Flynn & Gaskins, Minneapolis, MN, for Tobacco Institute, Inc.

Geoffrey P. Jarpe, Maun & Simon, Minneapolis, MN, Barry Schaevitz, Parker Chapin Flattau & Klimpl, New York, NY, for Smokeless Tobacco Council, Inc.

Clifford M. Greene, Greene Espel, Minneapolis, MN, for Clifford Greene.

MEMORANDUM AND ORDER

MAGNUSON, Chief Judge.

This matter is before the Court upon Defendants' Motion to Dismiss. For the following reasons, the Court grants Defendants' Motion in part and partially reserves Defendants' Motion for later determination.

BACKGROUND

Plaintiffs are health maintenance organizations ("HMO's") attempting to recoup health care costs they have incurred as a result of their members' tobacco-related illnesses. Plaintiffs...

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