AMERICAN LEGACY v. LORILLARD TOBACCO

C.A. No. 19406.

886 A.2d 1 (2005)

AMERICAN LEGACY FOUNDATION, a Delaware non-profit corporation, Plaintiff, v. LORILLARD TOBACCO COMPANY, a Delaware corporation, Defendant.

Court of Chancery of Delaware, New Castle County.

Decided: August 22, 2005.


Attorney(s) appearing for the Case

David C. McBride, Esquire, Martin S. Lessner, Esquire, Christian Douglas Wright, Esquire, Karen E. Keller, Esquire, Young, Conaway, Stargatt & Taylor, LLP, Wilmington, Delaware; John Payton, Esquire, David W. Ogden, Esquire, Stuart F. Delery, Esquire, Wilmer, Cutler, Pickering, Hale and Dorr LLP, Washington, D.C.; Ellen Vargyas, Esquire, American Legacy Foundation, Washington, D.C., Attorneys for American Legacy Foundation.

Stephen E. Herrmann, Esquire, Steven J. Fineman, Esquire, Richards, Layton & Finger, P.A., Wilmington, Delaware; Jim W. Phillips, Jr., Esquire, Robert J. King, III, Esquire, Charles E. Coble, Esquire, Brooks, Pierce, McLendon, Humphrey & Leonard, LLP, Greensboro, North Carolina, Attorneys for Lorillard Tobacco Company.

Don A. Beskrone, Esquire, Ashby & Geddes, P.A., Wilmington, Delaware; Michael C. Hefter, Esquire, Dewey Ballantine LLP, New York, New York, Attorneys for Amicus Curiae, The Citizens' Commission To Protect The Truth.

Joel Friedlander, Esquire, Bouchard, Margules & Friedlander, P.A., Wilmington, Delaware; Attorneys for Amici Curiae Alaska, Arizona, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Dakota, Northern Mariana Islands, Oklahoma, Oregon, Puerto Rico, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, and Wisconsin.

Thomas G. Macauley, Esquire, Elizabeth D. Power, Esquire, Zuckerman Spaeder LLP, Wilmington, Delaware; William B. Schultz, Esquire, Alexandra W. Miller, Esquire, Zuckerman Spaeder LLP, Washington, D.C., Attorneys for Amici Curiae Campaign for Tobacco-Free Kids, Action on Smoking and Health, American Cancer Society, American College of Occupational and Environmental Medicine, American College of Preventative Medicine, American Dental Hygienists' Association, American Heart Association, American Lung Association, American Public Health Association, American School Health Association, American Society of Addiction Medicine, Association of State and Territorial Health Officials, American Thoracic Society, Community Anti-Drug Coalitions of America, Lung Cancer Alliance, National African American Tobacco Prevention Network, National Association of County and City Health Officials, National Association of Local Boards of Health, and National Latino Council on Alcohol and Tobacco Prevention.


OPINION

LAMB, Vice Chancellor.

I.

This litigation arises out of the historic 1998 tobacco settlement between the nation's largest tobacco companies and 46 of the states' attorneys general. In the settlement, the tobacco companies agreed to fund a foundation charged with creating programs to reduce youth tobacco product usage in the United States. As part of its mission, the foundation created a series of television and radio ads under the...

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