Cigarette makers, including Altria Group Inc.’s Philip Morris USA unit, lost a bid to end court monitoring of the industry’s marketing practices stemming from the government’s 13-year-old racketeering lawsuit.
The U.S. Appeals Court in Washington upheld a lower court decision that oversight of the companies resulting from federal government lawsuit is necessary and should continue because of the companies’ records.
U.S. District Judge Gladys Kessler ruled June 1 that her involvement with the cigarette makers wasn’t ended by a 2009 law empowering the Food and Drug Administration to monitor the industry and restrict the sale, promotion and distribution of tobacco products.
The defendants also include Reynolds American Inc.’s R.J. Reynolds Tobacco and Lorillard Inc.’s Lorillard Tobacco Co.
The appeals court said in its decision that the district court “did not clearly err” when it found the companies were reasonably likely to commit future violations of the Racketeer Influenced and Corrupt Organizations Act.
The case is U.S. v. Philip Morris USA Inc., 11-5145, U.S. Court of Appeals for the District of Columbia Circuit (Washington).
© Copyright 2023 Bloomberg News. All rights reserved.