Court Tosses Out $800 Billion Tobacco Class Action Suit

[babylonsister]

US appeals court tosses $800 billion tobacco suit

REUTERS
Reuters North American News Service

Apr 03, 2008 15:03 EST

(Edits throughout with additional background on case, plaintiffs' reaction, paragraphs 9-10)

By Leslie Gevirtz

NEW YORK (Reuters) - A federal appeals court tossed out an $800 billion class-action lawsuit against tobacco companies Thursday brought by smokers who said they were deceived into believing "light" cigarettes were healthier.

The U.S. Court of Appeals for the Second Circuit said the smokers could not sue collectively. The decision means each individual smoker must prove that she or he had selected the product for perceived health benefits.

The smokers had sued the tobacco companies under the Racketeer Influenced and Corrupt Organization Act, contending they were misled by the industry's marketing and branding efforts into believing "light" cigarettes were healthier than "full-flavored" versions.

In 2006, in a ruling that stunned the industry, U.S. District Judge Jack Weinstein allowed the case to proceed as a class action. Known as the Schwab case, after the name of one of its lead plaintiffs, the lawsuit had covered a 35-year period and millions of smokers, tobacco companies said.

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