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Simon Worldwide Sues Philip Morris

November 16, 2001|Bloomberg News

Simon Worldwide Inc. sued Philip Morris Cos. in Los Angeles County Superior Court, accusing the tobacco company of illegally breaking a $7.5-million contract with the promoter after it became enmeshed in a scandal over a McDonald's Corp. give-away game.

Philip Morris fired Simon after the Federal Bureau of Investigation in August said an employee of Los Angeles-based Simon subsidiary Simon Marketing Inc. stole winning McDonald's game pieces worth more than $20 million in prizes. The employee shared the winnings with McDonald's customers in the scam, the FBI said.

Wakefield, Mass.-based Simon claims it already had ordered about $3.2 million in merchandise for Philip Morris' annual Marlboro merchandise catalog, which it handled since 1992. The company also claims Philip Morris owes it $4.3 million in unpaid bills, and seeks additional unspecified punitive damages.

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