Jump to full article: Reuters, 2008-12-16
Author: James Vicini
Intro: Tobacco firms can be sued under state law for deceptive advertising of "light" cigarettes, the U.S. Supreme Court ruled on Monday in a decision that could affect some 40 suits around the country seeking billions of dollars.
By a 5-4 vote, the high court ruled against Altria Group Inc.'s Philip Morris USA unit and held the Federal Cigarette Labeling and Advertising Act does not bar or preempt such state court lawsuits. . . .
Vice Fund portfolio manager Charles Norton said the ruling removed one defense used in cases involving light cigarettes, but does not signal a shift in tobacco litigation.
"In spite of today's ruling, I expect the future of (light cigarette) litigation to continue to move in the direction that it has in recent years, in favor of the industry," he said.
A related case is before a U.S. appeals court.
In October, a three-judge panel in Washington, D.C., heard arguments on whether a lower court erred in finding tobacco companies conspired to lie about the dangers of smoking.
Companies, including Philip Morris USA, were found to have violated federal racketeering laws in 2006 by a U.S. District judge, who ruled the firms could no longer use expressions such as "low tar" or light" in their cigarette marketing.
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