Altria Group inc. cigarettes and other organs of the U.S. lost an appeal of a lower court decision that the company had violated racketeering laws and who are prohibited from marketing cigarettes as "light" or "low tar".
U.S. Court of Appeals in Washington confirmed today U.S. District Judge Gladys Kessler's August 2006 ruling, which found that the company conspired for decades to deceive the public and is likely to violate racketeering laws in the future. Today's decision is a victory for the Justice Department, which sued the industry in 1999.
"The District Court found - is permissible, in our view - that companies have a common goal of generating revenues from cigarette fraudulent existing and potential smokers, the appellate court said in its 3-0 decision.
Companies have argued that the ban on "light" and "low tar" descriptors, which had been postponed pending an appeal, would cost hundreds of millions of dollars and would "radically change the business landscape."
Altria and Philip Morris USA unit said in a statement today that they intend to appeal. Reynolds American inc. 'S R.J. Reynolds Tobacco also said that he would appeal.
Altria Answer
"The findings of the court are not supported by law or the evidence presented at trial, and we believe that the exceptional importance of these issues justifies further consideration," Murray Garnick, Altria Client Services senior vice president and associate general counsel, said in a statement.
The judge's decision came after nine Kessler trial, which began in September 2004. In addition to the "Lights" ban, the court today confirmed the fact Kessler, prohibiting future violations of the companies under racketeering influenced and corrupt organizations, or RICO.
The appellate court also ruled that companies may be required to publish a statement correcting past distortions of the drug, the dangers of smoking and passive smoking, the companies' manipulation of cigarette design and the dangers of "light" and "low tar" cigarettes.
Kessler found that the company was misleading consumers into believing that "light" cigarettes are less dangerous than other types. not hazardous to health.
'Deceptive practices'
"This decision is a victory for the American people, which prohibits the use of misleading terms such as" light and low tar, "and gives the government an opportunity to carry out these companies if they continue their deceptive practices," Deputy Attorney General David Ogden said today in a statement.
Kessler ruled that the restrictions are necessary to prevent future RICO violations, rejecting the arguments of the company that in 1999 an agreement between the U.S. cigarette makers and 46 states do not allow them to violate the law.
"This decision reinforces the action the decision of Judge Kessler in 2006, the defendants, tobacco companies and their racketeering racketeers behavior not only in ancient history," said Edward Sweda, senior attorney for the anti-smoking group Tobacco Liability Project.
Sweda said that he was surprised by the unanimous opinion, which included Chief District Judge David Sentelle, a native of North Carolina, has appointed Court of Appeals by President Reagan in 1987. Sentelle ruled against the government's earlier appeal in this case.
Today, the Court rejected the Government's call for additional funds denied Kessler, including counter-marketing campaign, a nationwide smoking cessation program, plan to smoking by minors, as well as proposals for court-appointed monitor to oversee the industry.
RICO violations
Defending the findings regarding the company, the court returned the case against Brown and Williamson Holdings inc. the trial court for further investigation of the case from what is likely to commit future violations of RICO. Reynolds bought Brown and Williamson in the U.S. operations in 2004.
The court also instructed the lower court to make it clear that the ruling applies only in the U.S. and change of decisions related to the Point-Of-Sale displays. And the court of first instance should determine the order of Kessler relates to subsidiaries of the defendant.
Court of Appeal released from the trial of two industry groups, the Council for Tobacco Research-USA Inc. and the Tobacco Institute inc.
The suit was filed by the Clinton administration in 1999 and originally sought $ 289 billion to reimburse the federal government for money spent treating sick smokers. A series of rulings prevented the Government to collect money from the company.
Top-selling brand
Altria, based in Richmond, Va., is the largest U.S. cigarette maker. Its Philip Morris USA unit of Marlboro, the best-selling brands.
The defendants include Reynolds American, based in Winston-Salem, North Carolina, the second largest cigarette company and manufacturer of cigarettes Camel; Lorillard, allocated by Loews Corp., Producer of Newports; British American Tobacco Plc "British American Tobacco and Vector Group Ltd. 'S Liggett group.
Jeannine Dowling, a representative of Lorillard, had no comment.
Altria was unchanged at $ 16.64 in New York Stock Exchange composite trading today. Shares have risen 10 percent this year.
The case United States v. Philip Morris USA, 06-5267, U.S. Court of Appeals District of Columbia (Washington).
No comments:
Post a Comment