Tobacco.org

Court rejects appeal in tobacco settlement case 

The Supreme Court rejected an appeal Monday by a California smoker who alleged the multibillion dollar tobacco settlement between 46 states and the four major cigarette companies was anticompetitive and violated antitrust laws.

Philip Morris, R.J. Reynolds Tobacco Company, Brown & Williamson and Lorillard Inc. agreed in November 1998 to pay the states more than $200 billion over 25 years as part of the settlement.

In June 2004, Steve Sanders sued the four companies and the state of California, arguing that the terms of the agreement effectively penalized tobacco companies if they gained market share. Tobacco companies would have to make larger payments to the states if they cut prices and increased their sales relative to rivals, Sanders said in court filings.

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