Supreme Court Rules Against Philip Morris

In a defeat for the Altria Group's Philip Morris unit, the U.S. Supreme Court ruled Monday that a class action suit brought against the company in Arkansas state court cannot be moved to federal court. State court is viewed as a more hostile venue than federal court for tobacco companies. The suit alleges that Philip Morris used unfair and deceptive marketing practices in its advertising and packaging of "light" cigarettes. The Court decided that federal regulation of the products does not imply that cases concerning them should be heard at the federal level. The decision will affect suits against both Philip Morris and R.J. Reynolds Tobacco, a unit of Reynolds American. The ruling was widely anticipated by analysts and investors. "It doesn't change our stance about the incredible improvement in the legal environment for the U.S. tobacco companies," said portfolio manager Charles Norton. Edward Sweda, senior attorney for the Tobacco Products Liability Project, views the decision differently: it will "benefit plaintiffs and their attorneys in other 'light' cigarette litigation since Philip Morris' attempt to evade state law simply by virtue of the fact that it is regulated has failed."

Sources: Reuters, New York Times, MarketWatch, Bloomberg, Wall Street Journal
Commentary: Supreme Court Slaps Down Philip Morris [Perfectlyclueless] • Altria Shrugs Off Court Ruling [24/7 Wall St.]• Compliance with FTC Process Did Not Warrant Removal of State Suit: U.S. Supreme Court [Traderegulation] • Tobacco Litigation: Will Tobacco Companies Get A Refund From The States?
Stocks/ETFs to watch: Altria Group Inc. (MO), Reynolds American Inc. (RAI). ETFs: Vanguard Consumer Staples ETF (VDC), PowerShares FTSE RAFI Consumer Goods (PRFG), Consumer Staples Select Sector SPDR (XLP)
Related: Syllabus of the decision of the U.S. Supreme Court regarding Watson et al. v. Philip Morris Cos. Inc.

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Comments

[mes1955:]

I am interested in finding an attorney who would purse litigation against the Federal government for its participation in the sales of cigarettes, which juries have found to be addictive and the cause of death in cases brought against Phillip Morris.

I am concerned that settlements are made post-death, and feel that smokers should be compensated while still alive for allowing this product to be sold in the U.S.

Mar 31 05:03 PM