By STEVEN VAMES / New York Times
A group of tobacco farmers is expected to file a lawsuit in federal court Wednesday, claiming the four largest U.S. cigarette makers violated antitrust laws by using their market power to bully farmers into cutting prices for raw tobacco.
The suit, being filed on behalf of nearly 4,000 growers, alleges that cigarette makers have worked to undo a government quota system designed to support prices for tobacco leaf, The Wall Street Journal reported Wednesday.
The report said the farmers are looking for about $69 billion in damages.
The suit would drive a wedge between tobacco growers and cigarette makers, who have thus far maintained a healthy political alliance in the face of attacks on the industry.
The case would be yet another thorn in the side of tobacco companies, who might have to face further monetary damages after several successful state and federal lawsuits by sick smokers ended up costing them hundreds of billions of dollars.
Cigarette makers have also been recently hit by another antitrust lawsuit by some distributors who are accusing cigarette manufacturers of meeting secretly to make illegal agreements on wholesale pricing.:
