The ruling said manufacturers must change the way they market [image-nocss] cigarettes. It bans labels such as "low tar," "light," "ultra light" or "mild," since such cigarettes have been found to be no safer than others because of how people smoke them. It also said the companies must publish "corrective statements" on the adverse health effects and addictiveness of smoking and nicotine. The changes have not taken affect while the case has been under appeal. (Click here for previous CSP Daily News coverage.)
PM USA and its parent company, Altria Group Inc., New York, said they are reviewing the decision and intend to seek further review.
"PM USA and Altria Group continue to believe that the court's conclusions are not supported by the law or the evidence presented at trial, and we believe the exceptional importance of these issues justifies further review," said Murray Garnick, Altria Client Services senior vice president and associate general counsel.
The D.C. Circuit, however, rejected all of the government's and intervenor's cross appeal arguments and refused to broaden the remedial order entered by Judge [Gladys] Kessler. The court left undisturbed its prior holding that the government could not obtain disgorgement as a permissible remedy under RICO.
R.J. Reynolds Tobacco Co. said that it is disappointed that the U.S. Court of Appeals for the District of Columbia affirmed many of the findings of the district court in the lawsuit United States v. Philip Morris et al, particularly the finding that cigarette manufacturers violated federal racketeering laws.
"R.J. Reynolds strongly believes that neither the evidence presented at trial nor the legal standards justify a finding of liability," said Martin L. Holton III, senior vice president and general counsel for the company. "R.J. Reynolds is pleased, however, that the Court of Appeals reaffirmed that the disgorgement of profits is not an available remedy in this case. We are also pleased that the Court of Appeals affirmed the district court's decision not to require several of the remedies sought by the government, and ruled that some of the remedies the district court ordered were too broad."
The company is considering its options including seeking review by the U.S. Supreme Court.
Richmond, Va.-based PM USA is the manufacturer of cigarette brands including Alpine, Basic, Benson and Hedges, Bristol, Bucks, Cambridge, Chesterfield, Collector's Choice, Commander, English Ovals, Lark, L & M, Marlboro, Merit, Parliament, Saratoga, Superslims and Virginia Slims.
Winston-Salem, N.C.-based R.J. Reynolds Tobacco, an indirect subsidiary of Reynolds American Inc., manufactures cigarette brands including Camel, Pall Mall, Kool, Winston and Doral.
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