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Contingencies (Tables) | 9 Months Ended
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Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract] |
Schedule of Contingencies | The changes in our accrued liability for tobacco and health and certain other litigation items, including related interest costs, for the periods specified below are as follows:
| For the Nine Months Ended September 30, |  | For the Three Months Ended September 30, |  |
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Accrued liability for tobacco and health and certain other litigation items at beginning of period | $ | 71 |  |  | $ | 91 |  |  | $ | 381 |  |  | $ | 25 |  |  |
Pre-tax charges for: |  |  |  |  |  |  |  |  |
Tobacco and health and certain other litigation (1) | 75 |  |  | 71 |  |  | 23 |  |  | 21 |  |  |
Shareholder derivative lawsuits (2) | 98 |  |  | 27 |  |  | — |  |  | 20 |  |  |
JUUL-related settlements (3) | 240 |  |  | — |  |  | — |  |  | — |  |  |
Related interest costs | 11 |  |  | 3 |  |  | — |  |  | 2 |  |  |
Payments | (122) |  |  | (137) |  |  | (31) |  |  | (13) |  |  |
Accrued liability for tobacco and health and certain other litigation items at end of period | $ | 373 |  |  | $ | 55 |  |  | $ | 373 |  |  | $ | 55 |  |  |
(1) Includes judgments, settlements and fee disputes associated with tobacco and health and certain other litigation. (2) See Shareholder Class Action and Shareholder Derivative Lawsuits - Federal and State Shareholder Derivative Lawsuits below for a discussion of the settlement of the federal and state shareholder derivative lawsuits. (3) Includes the settlement of certain e-vapor product litigation relating to JUUL e-vapor products and the e-vapor product litigation brought by the Minnesota attorney general. See E-vapor Product Litigation below for a discussion of these settlements. The table below lists the number of certain tobacco-related cases pending in the United States against us as of:
| October 23, 2023 |  | October 24, 2022 |  | October 25, 2021
Individual Smoking and Health Cases (1) | 167 |  | 161 |  | 179
Health Care Cost Recovery Actions (2) | 1 |  | 1 |  | 1
E-vapor Cases (3) | 5,177 |  | 4,351 |  | 2,951
Other Tobacco-Related Cases (4) | 3 |  | 3 |  | 3
(1) Includes as of October 23, 2023, 15 cases filed in Illinois, 17 cases filed in New Mexico, 53 cases filed in Massachusetts and 46 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 class (these Engle progeny cases are discussed below in Smoking and Health Litigation - Engle Class Action). Also does not include 1,386 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. Class members were prohibited from filing individual lawsuits after 2000 under the court-approved settlement. (2) See Health Care Cost Recovery Litigation - Federal Government’s Lawsuit below. (3) Includes as of October 23, 2023, 57 class action lawsuits, 3,614 individual lawsuits and 1,506 “third party” lawsuits relating to the Multidistrict Litigation discussed under E-vapor Product Litigation below. The 57 class action lawsuits include 32 cases in the Northern District of California involving plaintiffs whose claims were previously included in other class action complaints but were refiled as separate stand-alone class actions for procedural and other reasons. In May 2023, we reached agreement on terms to resolve the majority of the Multidistrict Litigation lawsuits. Also includes three patent infringement lawsuits filed against us and certain of our affiliates. For further discussion of the pending Multidistrict Litigation settlement and patent infringement litigation, see E-vapor Product Litigation below. (4) Includes as of October 23, 2023, one inactive smoking and health case alleging personal injury and purporting to be brought on behalf of a class of individual plaintiffs 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. 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) | Post-Trial Status
Chacon | October 2023 | PM USA | Miami-Dade | <$1 million | <$1 million | Defendant’s post-trial motions pending.
Hoffman | January 2023 | PM USA | Miami-Dade | $5 million ($3 million PM USA) | $0 | Appeal by defendant to the Third District Court of Appeal pending.
Levine | September 2022 | PM USA and R.J. Reynolds | Miami-Dade | $1 million | $0 | Appeals by defendants and plaintiff to the Third District Court of Appeal pending.
Schertzer | April 2022 | PM USA and R.J. Reynolds | Miami-Dade | $3 million | $0 | Appeal by defendants to the Third District Court of Appeal pending.
Lipp | September 2021 | PM USA | Miami-Dade | $15 million | $28 million | Appeal by defendant to the Third District Court of Appeal pending.
Plaintiff | Verdict Date | Defendant(s) | Court | Compensatory Damages (1) | Punitive Damages (PM USA) | Post-Trial Status
Garcia | May 2021 | PM USA | Miami-Dade | $6 million ($3 million PM USA) | $0 | Appeal by defendant to the Third District Court of Appeal pending.
Duignan | February 2020 (2) | PM USA and R.J. Reynolds | Pinellas | $3 million ($1 million PM USA) | $0 | The Second District Court of Appeal vacated the final judgment entered in plaintiff’s favor following retrial, vacated the punitive damages judgment, directed the trial court to apply the jury’s comparative fault assessments to the compensatory damages verdict and ordered the trial court to set aside the jury’s findings on plaintiff’s fraud claims. In June 2023, plaintiff filed a motion for reconsideration, which the court denied in September 2023. The case will be returned to the trial court for further proceedings, including a retrial of plaintiff’s punitive damages claim.
McCall | March 2019 | PM USA | Broward | <$1 million (<$1 million PM USA) | <$1 million | Defendant’s post-trial motions pending.
Chadwell | September 2018 | PM USA | Miami-Dade | $2 million | $0 | Third District Court of Appeal has received supplemental briefing in accordance with the decision in Prentice (3).
Kaplan (McLaughlin) | July 2018 | PM USA and R.J. Reynolds | Broward | $2 million | $0 | Florida Supreme Court vacated the punitive damages award in accordance with the decision in Sheffield (3). The Fourth District Court of Appeal affirmed the compensatory damages award and granted a new trial on punitive damages.
Cooper (Blackwood) | September 2015 | PM USA and R.J. Reynolds | Broward | $5 million (<$1 million PM USA) | $0 | Fourth District Court of Appeal affirmed the compensatory damages award and granted a new trial on punitive damages.
(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. (3) PM USA is not a defendant in Prentice or Sheffield, which are discussed below in Engle Progeny Appellate Issues. Engle Cases Concluded Within Past 12 Months (rounded to nearest $ million)
Plaintiff | Verdict Date | Defendant(s) | Court | Accrual Date | Payment Amount for Damages (if any) | Payment Date
Miller | September 2022 | PM USA and R.J. Reynolds | Miami-Dade | Third quarter of 2022 | <$1 million | December 2022
Tuttle | August 2022 | PM USA | Duval | Third quarter of 2022 | <$1 million | October 2022
Holliman | February 2019 | PM USA | Miami-Dade | Fourth quarter of 2022 | $3 million | January 2023
D. Brown | January 2015 | PM USA | Federal Court - Middle District of Florida | Third quarter of 2022 | $5 million | August 2022

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