Tobacco: Supreme Court shoots down feds on disgorgement

Just in from SCOTUSBlog, an embarrassing defeat for the tobacco-industry-bashers in both Clinton and Bush administrations on one of their key retroactive-liability demands: The Court’s refusal to hear the Justice Department appeal in U.S. v. Philip Morris USA, Inc., et al. (05-92) takes off the table in the government’s mammoth lawsuit against the industry the […]

Just in from SCOTUSBlog, an embarrassing defeat for the tobacco-industry-bashers in both Clinton and Bush administrations on one of their key retroactive-liability demands:

The Court’s refusal to hear the Justice Department appeal in U.S. v. Philip Morris USA, Inc., et al. (05-92) takes off the table in the government’s mammoth lawsuit against the industry the most significant punishment that could be imposed if the tobacco companies are found to have violated federal anti-racketeering law (RICO). The Court gave no explanation for its denial of review; there were no recorded dissents.

For more, see Jun. 21 and links from there.

P.S. As Ted reminds us, this was an “interlocutory” appeal, i.e. one taken before a final judgment, and the Justices almost never agree to hear appeals at that stage; they might still be willing to consider the issue after the court below reaches judgment. That the Justice Department pursued appeal at this stage at all is a part of the embarrassment (and indicates the degree to which the Department is bending to political pressure). More: Jacob Sullum, Oct. 21.

Comments are closed.