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Big Tobacco is used to defending itself against aggressive outsiders, but recently it had to handle a squabble within its own family. In May a group of major cigarette companies and tobacco leaf buyers agreed to settle an antitrust action brought by farmers and quota holders (those who own or lease the right to sell tobacco) for an estimated $1.2 billion. The defendants do not admit to wrongdoing in the settlement. Still, it remains the first time that tobacco companies have settled an antitrust case prior to judgment. Three years ago, about 4,000 farmers and quota holders filed suit in federal district court, claiming that the defendant cigarette companies and leaf buyers conspired to fix tobacco prices at U.S. auction houses between 1996 and 2001, and to cause a reduction of quotas. After being granted class action status in April 2002, the number of plaintiffs ballooned to some 400,000 farmers and quota holders from all over the South. In the settlement, defendants Philip Morris USA Inc., Brown & Williamson Tobacco Corporation, and Lorillard Tobacco Company have agreed to purchase a minimum of 405 million pounds of domestic tobacco annually for at least the next ten years, which should generate an estimated $1 billion in additional revenue for the farmers and quota holders. The plaintiff class members will also divvy up $200 million in cash. One defendant, R.J. Reynolds Tobacco Company, opted out of the settlement, and its trial is set for April 2004. For Plaintiffs Howrey Simon Arnold & White (Washington, D.C.): J. Douglas Baldridge, Charles Engel III, Robert Green, Jr., Stuart Harris, Thomas Isaacson, Joseph Ostoyich, Alan Wiseman, special counsel Kenneth Anderson, and associates Sarah Garb, Brian Howie, Christina Sarchio, and Jennifer Zenker. Alexander Pires, Jr., at Conlon, Frantz, Phelan & Pires contacted Anderson about this case. Conlon, Frantz, Phelan & Pires (Washington, D.C.): Alexander Pires, Jr. For defendant Philip Morris USA Inc. (New York) In-house: Senior vice president and general counsel Denise Keane, associate general counsel Jose Murillo, Jr., and assistant general counsel David Fernandez. Arnold & Porter (Washington, D.C.): Donna Patterson, Douglas Wald, and Daniel Waldman. Boies, Schiller & Flexner (Armonk, New York): David Boies, Michael Brille, Carl Nichols, Robert Silver, and Jack Stern. (Brille and Nichols are based in the firm’s D.C. office, and Stern is based in New York.) Smith Moore (Greensboro, North Carolina): J. Donald Cowan, Jr., and Gregory Holland. For defendant Brown & Williamson Tobacco Corporation (Louisville) In-house: Senior counsel Neil Mellen. Kirkland & Ellis (Chicago): Thomas Campbell, Stephen Patton, Jeffrey Willian, and associates Thomas Morel and Jeffrey Zeiger. Brown & Williamson is a long-term client of the firm. Bell, Davis & Pitt (Winston-Salem): William Davis. For defendant R.J. Reynolds Tobacco Company (Winston-Salem) In-house: Senior counsel Darryl Marsch. Womble Carlyle Sandridge & Rice (Winston-Salem): W. Andrew Copenhaver, Robert Fields III, Hada Haulsee, Christopher Jones, and associates G. Carol Brani and Michael Montecalvo. (Fields and Jones are based in Raleigh.) For defendant Lorillard Tobacco Company (Greensboro, North Carolina) In-house: Vice president and general counsel Ronald Milstein. Brooks, Pierce, McLendon, Humphrey & Leonard (Greensboro, North Carolina): Mack Sperling, Jennifer Van Zant, James Williams, Jr., and associates Katherine Murphy and Clinton Pinyan. The firm provides corporate and litigation counsel to Lorillard. Weil, Gotshal & Manges (New York): Irving Scher and associate August Horvath. Weil, Gotshal advises Lorillard on antitrust matters. For defendant DIMON Inc. (Danville, Virginia) In-house: Chief legal officer Thomas Parrish. Hunton & Williams (Richmond): Ray Hartwell III, Douglas Kenyon, and associates Laurie Bremer, Gregory Kinzelman, and Robert Van Arnam. (Hartwell and Kinzelman are based in the firm’s D.C. office. Kenyon, Bremer, and Van Arnam are in the firm’s Raleigh office.) Hunton & Williams has represented DIMON before in litigation matters. For defendant Standard Commercial Corporation (Wilson, North Carolina) In-house: Vice president, general counsel, and secretary Henry Babb, Jr. Poyner & Spruill (Raleigh): David Long and Joseph Zeszotarski, Jr. For defendant Universal Leaf Tobacco Company Incorporated (Richmond) In-house: Senior vice president and general counsel � law & administration George Freeman III. Williams Mullen (Richmond): Patrick Hanes, Samuel Hixon III, and David Johnson. Williams Mullen has represented Universal since its incorporation. Tharrington Smith (Raleigh): F. Hill Allen and Wade Smith. Cahill Gordon & Reindel (New York): Laurence Sorkin. Cahill Gordon provides antitrust advice to the company.

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