When Much finishes his testimony, Minnesota lawyers plan to rest their case, though they may call other witnesses later. In a written report submitted to the court, Much said cigarette makers earned operating profits of 29 percent in the 1990s, up from 11 percent in the 1950s, even though fewer cigarettes were sold. Much wasn't asked questions about how close the Minnesota profit figure came to the damages sought in the lawsuit. But the purpose of his testimony is to give jurors an idea of the industry's worth. Blue Cross and the state also seek unspecified punitive damages in the lawsuit, which accuses cigarette makers of manipulating nicotine to hook smokers, targeting children as starter smokers, suppressing research and promoting a false controversy about the perils of smoking.
Operating profits are earnings before paying taxes and interest charges.
Net earnings, which account for those charges, are generally used in reporting business performance. Bernick's questioning resumes today. The latest appeal is related to Ramsey County District Judge Kenneth Fitzpatrick's sanctions against the British tobacco giant, B.A.T group, for the failure of two former scientists to appear as witnesses in the Minnesota case. As a penalty, Fitzpatrick on Saturday revoked the protection of lawyer-client privilege on documents connected with the scientists. The judge also said he may instruct jurors they can draw a negative conclusion about the destruction of research files of another scientist in 1985.