Thursday, April 10, 2008

Philip Morris Sues Companies Over Imports of Counterfeit Marlboros

RICHMOND, Va. (AP) -- Philip Morris USA, the nation's No. 1 tobacco company, said Wednesday it filed lawsuits against two companies it accuses of importing counterfeit cigarettes and unauthorized use of the Marlboro trademark.

Philip Morris, an operating company of Altria Group Inc., filed the federal suits in U.S. District Court in California on Tuesday against Sorensen Lighted Controls of Hartford, Conn., a manufacturer of indicator lights; and Damakali SA de CV of Mexico.

In January, U.S. Customs and Border Protection confiscated about 47,378 cartons of counterfeit cigarettes at the Port of Los Angeles. Sorensen Lighted Controls was listed as the importer. Damakali was listed as the importer of 28,260 cartons of counterfeit cigarettes seized in December.

"Importing and selling counterfeit cigarettes is illegal, and the Marlboro brand is a frequent target of counterfeiters," Charlie Whitaker, vice president of compliance and brand integrity for Altria Client Services, said in a news release.

A phone message seeking comment from Sorensen Lighted Controls was not immediately returned.

Attempts to reach a spokesman for Damakali were unsuccessful.

Over the last few years, the federal government and many state governments have increased taxes on cigarettes, giving rise to counterfeit or black market cigarettes.

Consumers who purchase the imitations are "likely to be confused and/or disappointed" when they intended to purchase genuine Marlboro cigarettes, the complaints state.

In both cases, Philip Morris is asking the court to ban the companies from purchasing, importing, distributing or selling counterfeit Marlboro cigarettes. It also is asking for the them to turn over its profits from the illegal cigarettes, along with punitive damages and attorney's fees.

Philip Morris said it has filed 30 cases against counterfeit importers in federal courts in California, Florida, New York and Texas over the past four years.

Shares of Altria fell 52 cents, or 2.4 percent, to $20.91.

Philip Morris USA: http://www.pmusa.com

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