Sunday, March 02, 2003

"The Biggest Corporate Fraud Case Ever Filed in Canada" Against RJR Affiliates.  The Detroit News reports that the Canadian government filed criminal charges against affiliates of RJ Reynolds, accusing them of flooding Canada with cheap contraband cigarettes in the 1990s.  According to the article, cigarette smuggling became rampant after a series of tax increases nearly doubled the price of a pack.  Tobacco companies began exporting huge volumes of tax free cigarettes to United States distributors, where there was virtually no market for the Canadian brands.  The cigarettes were then sneaked back into Canada.  Canadian officials claim that although all major cigarette manufacturers fed the contraband market, RJR "was perhaps the most blatant." 3:04:45 PM     Cutting Corners May Have Contributed to Rhode Island Tragedy.  The Dallas Morning News reports that the owners of the club that caught fire during the pyrotechnics portion of a concert insulated the club with "cheap and highly flammable packing foam" manufactured by American Foam Corp, "not real acoustic insulation."  When it caught fire, it burned like gasoline and emitted toxic smoke.  Even though American Foam Corp. may never have intended for their packaging material to be used as insulation, it will probably not save them from being named in the lawsuits that are sure to arise from the now ninety-six deaths that resulted from the fire, especially since American Foam may be one of the deeper pockets.  The Houston Chronicle and The Detroit News report as well. 11:15:57 AM     Another Tobacco Victory.  Phillip Morris and R.J Reynolds escaped liability for the death of a man who "had cancer from head to foot when he died."  The companies' lawyers cited other possible causes for his cancer. 12:21:56 AM

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