Jump to full article: Reuters, 2008-04-03
Author: Leslie Gevirtz
Intro: The U.S. Court of Appeals for the Second Circuit tossed out an $800 billion lawsuit against big tobacco on Thursday by decertifying a class of smokers who said they were deceived into believing "light" cigarettes were healthier.
The smokers had sued the tobacco companies for $800 billion in economic damages stemming from their purchase of light cigarettes, and in 2006 U.S. District Judge Jack B. Weinstein certified the class.
The group of smokers, "allegedly deceived - by defendants' marketing and branding - into believing that 'light' cigarettes were healthier than 'full-flavored' cigarettes," sued under the Racketeer Influenced and Corrupt Organization Act. . . .
Philip Morris USA noted that the ruling said the smokers' class action "suffers from an insurmountable deficit of collective legal or factual questions."
Goldman Sachs, in an analyst's note, viewed the ruling as a positive but noted "the consensus view has long been that the 2nd Circuit would overturn Judge Weinstein's certification..."
Shares in the tobacco stocks were little changed in early afternoon trade.
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