Philip Morris's primary defense tactic has been based on seeking a preemption of liability based on the Federal Cigarette Labeling and Advertising Act. Five federal courts have naled that the cigarette labeling act does protect cigarette manufacturers from some liability claims. Conversely, the Supreme Court of New Jersey and one of the Texas appellate courts ruled that the cigarette labeling act does not limit the liability of the cigarette manufacturers.
As with any court case the outcome is uncertain. A finding in favor of the plaintiff would have the effect of denying preemption of liability on the basis of the existence of he cigarette warning labels. This could entice additional litigation against cigarette manufacturers Philip Morris remains confident that, even in this worst-case scenario,the lawsuits will not pose a substantive threat to its overall financial health.