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20 July 2014

RJ get smoked out by 11-digit fine

A US court has ordered the country's second largest cigarette company to pay US$23.6 billion (yes, billion) to the wife of a smoker who died of lung cancer. RJ Reynolds Tobacco Company was hit with the punitive fine in addition to a tiny-by-comparison US$16.8 million in compensatory damages. Cynthia Robinson first took action against the firm in 2008, seeking compensation for her husband's death in 1996. During the four-week trial, lawyers for Ms Robinson argued that RJ Reynolds was negligent in informing consumers of the dangers of consuming tobacco. This negligence, her lawyers said, led to her husband Michael Johnson Sr contracting lung cancer from smoking after becoming "addicted" and failing multiple attempts to quit. RJ Reynolds plans to appeal against the court's decision, vice president and assistant general counsel Jeffery Raborn said in a statement, adding "this verdict goes far beyond the realm of reasonableness and fairness, and is completely inconsistent with the evidence presented." Tough. RJ Reynolds took a calculated risk by manufacturing cigarettes and selling them to consumers without properly informing them of the hazards. The fine, which is said to be the largest of any individual case stemming from a class action lawsuit filed in Florida, will send a message to RJ Reynolds and other big tobacco companies that will force them to stop putting the lives of innocent people in jeopardy.

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