Go Symbol Lookup
Loading...

Supreme Court Rules Against Philip Morris in Tobacco Case

 Text Size  
Published: Monday, 11 Jun 2007 | 10:38 AM ET
By: Reuters

The U.S. Supreme Court ruled that a class-action lawsuit against Philip Morris USA, a unit of Altria Group, should not be decided in federal court, handing a defeat to the tobacco company.

The justices unanimously reversed a ruling that allowed Philip Morris to transfer the lawsuit to federal court from the Arkansas state court where it initially was filed.

At issue is a suit filed against Philip Morris by two Arkansas women alleging that the company engaged in unfair business practices in marketing its low-tar Cambridge Lights and Marlboro Lights cigarette brands.

Companies facing class-action lawsuits typically prefer to have those cases litigated in federal courts, where they usually fare better than in state courts.

Philip Morris succeeded in having the case moved to federal court, saying it was appropriate because cigarette advertisements had been regulated by a U.S. agency -- the Federal Trade Commission.

The move was subsequently upheld by a federal appeals court in St. Louis. The Justice Department told the Supreme Court that the appeals court's ruling should be overturned.

The Supreme Court agreed and reversed the ruling in an opinion written by Justice Stephen Breyer.

Breyer said the fact that a federal regulatory agency directs, supervises and monitors a company's activities in considerable detail does not bring that company under the scope of the law that permits removal to federal court.

 Print
The U.S. Supreme Court ruled that a class-action lawsuit against Philip Morris USA, a unit of Altria Group, should not be decided in federal court, handing a defeat to the tobacco company.
  Price   Change %Change
MO ---

   
Comments

 

More Comments

 
 

Add Comments

 

Your Comments (Up to 1100 characters):

Remaining characters

Your comments have not been posted yet.

Please review your submission to make sure you are comfortable with your entry.

Your Comments:


                
            
            
        

Featured

U.S. Video

  • Former Education Secretary Bill Bennett has a new book out called "Is College Worth It?" Bennett discusses financial aid, tuition and what else is discouraging to students.

  • Every single economic report beat the Street's expectations this week. Insight on the markets, and the Fed's impact, with Andy Cross, Motley Fool.

  • Discussing what's next for IRS official Lois Lerner, and whether it's time for an IRS special counsel, with Tom Curran, Peckar & Abramson and John Eastman, Chapman University.