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• Philip Morris USA Says Watson Ruling Should Not Affect Outcome of "Lights" Cases 

The U.S. Supreme Court's decision to reverse rulings by lower federal courts in the Watson case and remand it to state court does not negatively affect the ultimate outcome of the case or that of other "Lights" cases, Philip Morris USA said today.

"Today's ruling is narrow and merely determined whether the Watson case should be heard in federal court or state court. We have compelling defenses to the Watson claim that have been advanced in state courts," said William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel.

Ohlemeyer added that the Watson case will have minimal effect on "Lights" or other class actions filed against the company after enactment of the Class Action Fairness Act in 2005, which requires most class actions to be heard in federal court. . . .

Today's decision clarified the procedural issue of when defendants, who are acting under a federal agency like the FTC and sued in state court, can remove the case to federal court. While today’s decision does not directly address the issue of whether the federal labeling act or agency regulation of a defendant's advertising and marketing activities prevents plaintiffs from suing under state consumer fraud laws, the Court did note that Philip Morris USA was acting pursuant to “… considerable regulatory detail and supervision….”

Philip Morris USA has long maintained that Congress and the FTC created a comprehensive regulatory scheme for marketing "low tar" and "Lights" cigarettes and, that these types of class actions are pre-empted by federal law or exempted from state consumer fraud laws. Many courts have so held and today’s decision adds further support to those rulings.

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Today's ruling is narrow and merely determined whether the Watson case should be heard in federal court or state court. We have compelling defenses to the Watson claim that have been advanced in state courts.
William S. Ohlemeyer, Philip Morris USA vice president and associate general counsel, on the SCOTUS ruling.