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Contingencies (Tables) | 6 Months Ended
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Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract] |
Schedule of Contingencies |
Currently Pending Engle Cases with Accrued Liabilities (rounded to nearest $ million)
Plaintiff | Verdict Date | Defendant(s) | Court | Compensatory Damages (All Defendants) | Punitive Damages (PM USA) | Appeal Status | Accrual (1)
Berger (Cote) | September 2014 | PM USA | Federal Court - Middle District of Florida | $6 million | $21 million | The Eleventh Circuit Court of Appeals reinstated the punitive and compensatory damages awards and remanded the case to the district court. PM USA’s challenge to the punitive damages award was denied by the district court. PM USA’s appeal to the Eleventh Circuit Court of Appeals is pending. | $6 million accrual in the fourth quarter of 2018
Santoro | March 2017 | PM USA, R.J. Reynolds and Liggett Group(2) | Broward | $2 million (<$1 million PM USA) | <$1 million | The Fourth District Court of Appeal affirmed the compensatory damages award and reinstated the punitive damages award. Defendants’ motion for rehearing was denied. PM USA plans to appeal. | <$1 million accrual for compensatory damages award in the second quarter of 2020
(1) Accrual amounts include interest and associated costs, if applicable. For cases with multiple defendants, if any, accrual amounts reflect the portion of compensatory damages PM USA believes it will have to pay if the case is ultimately decided in plaintiff’s favor after taking into account any portion potentially payable by the other defendant(s). (2) References to “R.J. Reynolds,” “Lorillard” and “Liggett Group” are to R.J. Reynolds Tobacco Company, Lorillard Tobacco Company and Liggett Group, LLC, respectively.
Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million)
Plaintiff | Verdict Date | Defendant(s) | Court | Compensatory Damages (1) | Punitive Damages (PM USA) | Appeal Status
Duignan | February 2020(2) | PM USA and R.J. Reynolds | Pinellas | $3 million | $12 million | Defendants’ post-trial motions pending.
Cuddihee | January 2020 | PM USA | Duval | $3 million | $0 | Defendant’s post-trial motions denied. Defendant plans to appeal.
Rintoul (Caprio) | November 2019(2) | PM USA and R.J. Reynolds | Broward | $9 million ($5 million PM USA) | $74 million | Defendants’ post-trial motion pending.
Gloger | November 2019(2) | PM USA and R.J. Reynolds | Miami-Dade | $15 million ($5 million PM USA) | $11 million | Appeal by defendants to Third District Court of Appeal pending.
McCall | March 2019 | PM USA | Broward | <$1 million (<$1 million PM USA) | <$1 million | New trial ordered on punitive damages.
Neff | March 2019 | PM USA and R.J. Reynolds | Broward | $4 million | $2 million | Appeals by plaintiff and defendants to Fourth District Court of Appeal pending.
Frogel | March 2019 | PM USA | Palm Beach | <$1 million (<$1 million PM USA) | $0 | Appeals by plaintiff and defendant to Fourth District Court of Appeal pending.
Mahfuz | February 2019 | PM USA and R.J. Reynolds | Broward | $12 million | $10 million | Appeals by plaintiff and defendants to Fourth District Court of Appeal pending.
Holliman | February 2019 | PM USA | Miami-Dade | $3 million | $0 | Defendant’s appeal to Third District Court of Appeal pending.
Other Currently Pending Engle Cases with Verdicts Against PM USA (rounded to nearest $ million)
Plaintiff | Verdict Date | Defendant(s) | Court | Compensatory Damages (1) | Punitive Damages (PM USA) | Appeal Status
Chadwell | September 2018 | PM USA | Miami-Dade | $2 million | $0 | Third District Court of Appeal affirmed the compensatory damages award. PM USA petitioned Florida Supreme Court for review. Case stayed pending decision in Prentice.
Kaplan | July 2018 | PM USA and R.J. Reynolds | Broward | $2 million | $2 million | Appeals by defendants and plaintiff to Fourth District Court of Appeal pending.
R. Douglas | November 2017 | PM USA | Duval | <$1 million | $0 | Awaiting entry of final judgment by the trial court.
Sommers | April 2017 | PM USA | Miami-Dade | $1 million | $0 | Third District Court of Appeal affirmed compensatory damages award and granted new trial on punitive damages. Defendant petitioned Florida Supreme Court for review.
Cooper (Blackwood) | September 2015 | PM USA and R.J. Reynolds | Broward | $5 million (<$1 million PM USA) | $0 | Fourth District Court of Appeal affirmed judgment and granted a new trial on punitive damages.
D. Brown | January 2015 | PM USA | Federal Court - Middle District of Florida | $8 million | $9 million | Appeal by defendant to U.S. Court of Appeals for the Eleventh Circuit pending.
Dean (Kerrivan) | October 2014 | PM USA and R.J. Reynolds | Federal Court - Middle District of Florida | $16 million | $16 million | U.S. Court of Appeals for the Eleventh Circuit affirmed the judgment. Defendants’ motion for rehearing pending.
Harris | July 2014 | PM USA, R.J. Reynolds and Lorillard | Federal Court - Middle District of Florida | $2 million (<$ 1 million PM USA) | $0 | Appeals by plaintiff and defendants to U.S. Court of Appeals for the Eleventh Circuit pending.
(1) PM USA’s portion of the compensatory damages award is noted parenthetically where the court has ruled that comparative fault applies. (2) Plaintiff’s verdict following a retrial of an initial verdict in favor of plaintiff.
Engle Cases Concluded Within Past 12 Months(1) (rounded to nearest $ million)
Plaintiff | Verdict Date | Defendant(s) | Court | Accrual Date | Payment Amount (if any) | Payment Date
Landi(2) | June 2018 | PM USA and R.J. Reynolds | Broward | Second quarter of 2020 | $10 million | July 2020
Theis(3) | May 2018 | PM USA and R.J. Reynolds | Sarasota | First quarter of 2020 | $17 million | February 2020
Alvarez Del Real | September 2019 | PM USA | Miami-Dade | Fourth quarter of 2019 | <$1 million | October 2019
Zingaro | May 2019 | PM USA and R.J. Reynolds | Broward | Third quarter of 2019 | <$1 million | October 2019
(1) In four cases in which PM USA paid the judgments more than a year ago, Naugle, Gore, M. Brown and Jordan, plaintiffs were awarded approximately $8 million, $2 million, $9 million and $4 million in fees and costs, respectively. PM USA has appealed in all of these cases. In another case concluded more than a year ago, Wallace, PM USA paid $2 million in fees and other costs in July 2020. (2) In June 2020, the Fourth District Court of Appeal affirmed the compensatory damages award. As a result, in the second quarter of 2020, PM USA recorded a pre-tax provision of approximately $10 million for the judgment plus interest and paid this amount in July 2020. (3) In February 2020, the Florida Second District Court of Appeal denied PM USA’s petition for review. As a result, in the first quarter of 2020, PM USA recorded a pre-tax provision of approximately $17 million for the judgment plus interest and paid this amount. The table below lists the number of certain tobacco-related cases pending in the U.S. against PM USA and, in some instances, Altria as of July 24, 2020, July 26, 2019 and July 23, 2018:
| July 24, 2020 |  | July 26, 2019 |  | July 23, 2018
Individual Smoking and Health Cases (1) | 116 |  | 90 |  | 97
Health Care Cost Recovery Actions (2) | — |  | 1 |  | 1
E-vapor Cases(3) | 621 |  |  |  |
Other Tobacco-Related Cases(4) | 4 |  | 4 |  | 6
(1) Includes 24 cases filed in Massachusetts and 49 non-Engle cases filed in Florida. Does not include individual smoking and health cases brought by or on behalf of plaintiffs in Florida state and federal courts following the decertification of the Engle case (these Engle progeny cases are discussed below in Smoking and Health Litigation - Engle Class Action). Also does not include 1,471 cases brought by flight attendants seeking compensatory damages for personal injuries allegedly caused by exposure to environmental tobacco smoke (“ETS”). The flight attendants allege that they are members of an ETS smoking and health class action in Florida, which was settled in 1997 (Broin). The terms of the court-approved settlement in that case allowed class members to file individual lawsuits seeking compensatory damages, but prohibited them from seeking punitive damages. In March 2018, 923 of these cases were voluntarily dismissed without prejudice. (2) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes 25 class action lawsuits, 561 individual lawsuits, 24 state or local government lawsuits and 11 lawsuits filed by school districts relating to JUUL e-vapor products. JUUL is an additional named defendant in each of these lawsuits. (4) Includes two inactive smoking and health cases alleging personal injury or seeking court-supervised programs or ongoing medical monitoring and purporting to be brought on behalf of a class of individual plaintiffs, including one case in which the aggregated claims of a number of individual plaintiffs are to be tried in a single proceeding, and two inactive class action lawsuits alleging that use of the terms “Lights” and “Ultra Lights” constitute deceptive and unfair trade practices, common law or statutory fraud, unjust enrichment, breach of warranty or violations of RICO. The changes in Altria’s accrued liability for tobacco and health litigation items, including related interest costs, for the periods specified below are as follows:
| For the Six Months Ended June 30, |  | For the Three Months Ended June 30,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Accrued liability for tobacco and health litigation items at beginning of period (1) | $ | 14 |  |  | $ | 112 |  |  | $ | 10 |  |  | $ | 20 |
Pre-tax charges for: |  |  |  |  |  |  |
Tobacco and health litigation | 39 |  | (2) | 40 |  |  | 17 |  |  | 25 |
Related interest costs | 3 |  |  | 5 |  |  | 1 |  |  | 3 |
Payments (1) | (34 | ) | (3) | (144 | ) |  | (6 | ) |  | (35 | )
Accrued liability for tobacco and health litigation items at end of period (1) | $ | 22 |  |  | $ | 13 |  |  | $ | 22 |  |  | $ | 13 |
(1) Includes amounts related to the costs of implementing the corrective communications remedy related to the Federal Government’s Lawsuit discussed below. (2) Includes approximately $12 million related to pre-trial resolution of approximately 200 tobacco and health cases. (3) Includes approximately $12 million in payments related to above-mentioned pre-trial resolution of approximately 200 tobacco and health cases and $2 million for pre-trial resolution of other tobacco and health cases that was accrued in 2019 but not paid until 2020.

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