Philip Morris Settles Shareholder Suit

Philip Morris Cos. agreed to settle a lawsuit in which shareholders accused the No. 1 tobacco maker of making misleading statements about the addictive qualities of cigarettes. As part of the settlement, Philip Morris is creating a $105-million fund for the benefit of shareholders who bought stock in Philip Morris from June 11, 1991, through May 6, 1994. The fund will also cover any attorneys’ fees and other expenses that may be ordered by the court. In a statement, the company said it agreed to settle the class-action case to halt the expense, inconvenience and distraction of continued litigation. Philip Morris and former officers named in the suit “continue to deny any liability with respect to the claims alleged,� the statement said. The just-settled case was known as the Kurzweil lawsuit and was filed in New York in April 1994. It accused Philip Morris and some of its officers and directors of violating securities laws by making false and misleading statements about cigarettes’ addictive qualities. The settlement is subject to a number of conditions, including approval by the court. A hearing has been set for Oct. 16.