California High Court to Review Award

Philip Morris USA, a unit of Altria Group Inc., won a California Supreme Court review of a $9-million punitive damage award to a sick smoker that has already been reduced twice.

The California Supreme Court set aside the award and will review whether the amount is appropriate. Patricia Henley, who was diagnosed with lung cancer, had been awarded $50 million in punitive damages in 1999. That award was reduced to $25 million by the trial judge and then lowered to $9 million by an appeals court last year. Punitive awards are meant to punish a defendant.

Altria’s shares fell 63 cents to $55.28 on the New York Stock Exchange.

From Bloomberg News