Bennett S. LeBow
EducationDrexel University (BS)
OccupationBusinessman
Known forChairman of the board of Vector Group
Spouses
  • Geraldine Cosher LeBow (until 2011)
  • Jacqueline Finkelstein LeBow (2014–present)
Children2

Bennett S. LeBow is an American businessman and philanthropist. He is the founder and chairman of the board of Vector Group.[1] After LeBow acquired the cigarette manufacturer Liggett Group in 1986, the company became involved in anti-tobacco lawsuits culminating in the 1998 Tobacco Master Settlement Agreement.

Early life and education

LeBow's father, Martin, was a life insurance salesman and his mother, Suara, was a teacher.[2][3][4] He graduated from West Philadelphia High School,[4] and in 1960 earned a degree in electrical engineering from Drexel University.[4] LeBow then went on to graduate school at Princeton University. Before completing his degree, LeBow left Princeton and joined the army where he installed early data systems at the Pentagon.[4]

Career

LeBow's first foray into business occurred in the 1960s, when he started a computer company to continue his Pentagon project. LeBow sold the business in 1971, and became a full-time investor.[4] In 1980, he founded the investment holding company Brooke Group Ltd.[5] LeBow went on to purchase many companies including Western Union, Information Displays, MAI Basic Four, Liggett Group, Brigham's Ice Cream,[4][6] and SkyBox International.[7][8] In 2000, Brooke Group Ltd. was renamed to Vector Group Ltd.[5]

In 1984, LeBow completed the sale of Information Displays, which subsequently went bankrupt. The buyer sued LeBow and his partners for fraud and misrepresentation.[9] In 1986, he purchased the fifth-largest cigarette manufacturer in the United States, the Liggett Group, for $140 million.[5][10] In 1987, Liggett bought a majority stake in Western Union, which had a negative net worth of $200 million. The company, then renamed New Valley LLC, eventually filed for bankruptcy but was able to pay its bondholders in full via asset sales. Liggett later sold its remaining interest in Western Union Financial Services Inc for $1.2 billion, earning it a $300 million profit.[11] In 1994, LeBow was sued by his shareholders, who claimed he had taken millions of dollars in improper loans; LeBow settled out of court."[12] In 1995, he teamed up with corporate raider Carl Icahn to make a bid for RJR Nabisco.[13] The bid was rejected by shareholders, who were skeptical due to LeBow's "dubious reputation as a manager."[12]

In May 2010, after a $25 million investment, he became a member of the board of directors at Borders Group Inc. and was immediately elected chairman of the board, replacing Mick McGuire, who resigned.[14] In June 2010, LeBow became CEO of Borders Group Inc.[15] In February 2011, Borders declared bankruptcy.[16][17]

LeBow is chairman of the board of Vector Group, the holding company for Liggett Group, Vector Tobacco, New Valley LLC, and Douglas Elliman. He owns over 150,000 units of Vector stock, worth $7.5 million.[18]

Tobacco industry and litigation

LeBow purchased the Liggett Group for $140 million in 1986.[5][10] In 1993, LeBow stated under sworn testimony that whether cigarettes cause cancer is irrelevant, since cigarettes are a legal product and people choose to use them.[19] In 1996, while under his leadership, Liggett Group broke ranks with the rest of the US tobacco industry, including Philip Morris, Brown and Williamson, RJR Nabisco, Loews and Lorillard, when he announced that Liggett would settle the Medicaid tobacco suits brought by forty state attorneys general.[20]

Liggett had previously been accused of being illegally influenced by Philip Morris, which allegedly paid some of Liggett's legal bills in order to buy its cooperation in anti-tobacco lawsuits.[21] LeBow stated that the reason for the settlement was to obtain immunity for Liggett from future liabilities[3] and to prevent a future bankruptcy.[22] The settlement entailed that Liggett agree to pay $1 million in damages;[10] publicly announce that smoking is addictive and causes cancer; turn over long-secret tobacco industry documents; disclose ingredients in its cigarettes; and testify against the industry. Liggett was the first cigarette company to voluntarily put the label "Nicotine is Addictive" on their product.[22]

LeBow was honored with a proclamation by Florida governor Lawton Chiles for his "invaluable assistance" in helping the state achieve its $11.3 billion settlement with the tobacco industry.[23]

According to court documents, Liggett, while under LeBow's leadership, "engage[d] in marketing tactics that appeal to youths, such as couponing, sampling, and 'buy one get one free' offers for its cigarettes, and advertise[d] in magazines with substantial youth readership."[24]

Through Vector Tobacco Inc., LeBow developed the nicotine-free cigarette Quest, a cigarette designed to aid in smoking cessation.[25]

In 2005, LeBow resigned from the Dana–Farber Cancer Institute Board of Trustees shortly after his appointment over discussions about the propriety of associating with the owner of a company which sells products that are known to cause cancer.[26]

Philanthropy and political activity

LeBow is a large supporter of his alma mater, Drexel University. In 1998, Drexel's College of Business and Administration was named the Bennett S. LeBow College of Business in his honor after LeBow made a $10 million donation to the university.[27] LeBow also endowed the Bennett S. LeBow Engineering Center, a facility that houses Drexel's College of Engineering. In November 2010, LeBow contributed $45 million for the construction of a new facility for the LeBow College of Business, the 12th largest gift to any US business school and the biggest ever to Drexel University.[28][29] In 2011, LeBow was named the nation's 23rd largest charitable donor by The Chronicle of Philanthropy for donating more than $49 million to charitable causes.[30]

In the 2000 book Red Mafiya: How the Russian Mob Has Invaded America, the author states: "Ukrainian mob boss Vadim Rabinovich attended a Clinton-Gore fund raiser at the Sheraton Bal Harbor Hotel in Miami. Rabinovich came as a guest of Bennett S. LeBow, the Chairman of Brooke Group Ltd, Parent of Liggett, a cigarette manufacturing company (LeBow refused to comment)."[31] According to a spokesman for LeBow, LeBow's Brooke Group and Rabinovich developed a business center and luxury hotel in Kyiv.[32]

In 2009, LeBow made a $10,000 campaign contribution to Manhattan District Attorney candidate Leslie Crocker Snyder, whose law firm – Kasowitz, Benson, Torres & Friedman – had represented the Liggett Group in smoking and health litigation since 1996.[33]

Personal life

LeBow is Jewish.[10] LeBow was first married to Geraldine Cosher[34] whom he met while they were college students (he was at Drexel and she attended Temple University).[35] They had two daughters.[4][6] Geraldine died in 2011[34] after 52 years of marriage.[35] As of 2014, Bennett LeBow is married to Jacqueline Finkelstein-LeBow, the principal of real estate investment firm JSF Capital.[36]

References

  1. ↑ Vector Group Limited: "Board of Directors" retrieved October 25, 2015
  2. ↑ Summit Towers Condo Association Bulletin Archived 2014-08-08 at the Wayback Machine March 1992
  3. 1 2 The New York Times: "An Entrepreneur's High-Stakes Move" By Glenn Collins March 21, 1997
  4. 1 2 3 4 5 6 7 Philadelphia Inquirer: "Bennett S. LeBow, a longtime businessman, with a great love for Drexel, his alma mater" By Melissa Dribben November 16, 2010
  5. 1 2 3 4 Britannica Online: "Bennett S. LeBow" retrieved October 25, 2015
  6. 1 2 The New York Times: "Turnaround Artist: Bennett S. LeBow; Collecting Wall Street's Wallflowers" By Barnaby J. Feder September 25, 1988
  7. ↑ Los Angeles Times: "Other News" March 10, 1995
  8. ↑ The New York Times: "Liggett to Change Its Focus With Shift From Cigarettes" by Anthony Ramirez June 22, 1990
  9. ↑ "Turnaround Artist: Bennett S. LeBow; Collecting Wall Street's Wallflowers", The New York Times, September 25, 1988
  10. 1 2 3 4 "Lebow Turns Over a New Leaf". BusinessWeek. May 6, 2001. "LeBow, who is Jewish, even brought in a rabbi to say a prayer for the dead deal".
  11. ↑ Baltimore Sun: 'Bennett LeBow, flashy financier, 'likes to be in control' RTC Setting the agenda for tobacco industry" March 24, 1996
  12. 1 2 Kadlec, Daniel (March 31, 1997). "Populist Hero or Bottom Feeder?". Time. ISSN 0040-781X. Retrieved November 19, 2023.
  13. ↑ Border's New Chairman: Bad For Business? Sarah Weinman, Daily Finance, September 23, 2010.
  14. ↑ Ann Arbor News: "Tobacco executive, investor becomes chairman of Borders Group Inc. after $25 million deal" By Nathan Bomey May 21, 2010
  15. ↑ Ann Arbor News: "Tobacco executive Bennett LeBow takes control of Borders Group" By Nathan Bomey June 3, 2010
  16. ↑ The Wall Street Journal: "Bookseller Borders Begins a New Chapter...11" By Joseph Checkler and Jeffrey A. Trachtenberg February 17, 2011
  17. ↑ The Wall Street Journal: "Borders Bankruptcy: Blow to Bill Ackman, Bennett LeBow" by Shira Ovide February 16, 2011
  18. ↑ "Vector Group Ltd. DEF 14A Mar. 12, 2018 4:44 PM". Seeking Alpha. Retrieved June 29, 2020.
  19. ↑ The New York Times: "On Cigarettes, Health, and Lawyers" By Michael Janofsky December 6, 1993 | citing the following deposition: Q. If I asked you, does smoking cause lung cancer... A. I don't know. Q. O.K., and you really don't care because you're selling a legal product? A. Correct.
  20. ↑ Bloomberg: "Bennett Lebow: Cigarette (Industry) Break" May 10, 1998
  21. ↑ "Tobacco Company Paid Competitors Legal Bills", The New York Times, July 22, 1997.
  22. 1 2 Inside the Tobacco Deal: Bennet LeBow Profile PBS Frontline
  23. ↑ Business Wire: "Liggett's Bennett LeBow Honored by Florida Governor Lawton Chiles and Attorney General Robert Butterworth" Archived 2016-03-05 at the Wayback Machine October 21, 1997
  24. ↑ Deposition of Steven Shipe, United States v. Philip Morris, May 21, 2002, 86:22-87:13.
  25. ↑ Davis, Joshua. "Come to LeBow Country" Wired, February 2003
  26. ↑ "Er, Never Mind", The New York Times, March 13, 2005.
  27. ↑ "Drexel Receives $10 Million Gift from Alumnus Bennett S. LeBow". Drexel University. 1999. Archived from the original on March 22, 2007. Retrieved October 29, 2007.
  28. ↑ "Drexel to receive $45 million gift for new center for business school". The Philadelphia Inquirer. 2010. Retrieved November 26, 2010.
  29. ↑ Drexel University Alumni Magazine: "A new gift from Bennett S. LeBow '60, Hon. '98 - Drexel's leading alumni benefactor adds to his legacy" Archived October 20, 2011, at the Wayback Machine Fall 2004
  30. ↑ "No. 23: Bennett S. LeBow". The Chronicle of Philanthropy. 2011. Retrieved February 27, 2011.
  31. ↑ "Red Mafiya: How the Russian Mob Has Invaded America", Robert Friedman, May 2000, pages 268 - 269.
  32. ↑ The New York Times: "A Cosmetics Heir's Joint Venture Is Tainted by Ukrainian's Past" by Douglas Frantz and Raymond Bonner April 5, 1997
  33. ↑ Leslie Crocker Snyder Accepts Tobacco Executive's Money, Daily News, August 25, 2009.
  34. 1 2 Drexel University news: "College Mourns Death of Gerri LeBow" August 3, 2011
  35. 1 2 "What's in a Name? Drexel University's Bennett S. LeBow". MetroMBA. October 11, 2016. Retrieved February 28, 2019.
  36. ↑ Weiss, Lois (January 25, 2017). "Real estate gurus who know Donald say he's a good guy". New York Post. Retrieved February 28, 2019.

Further reading


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.