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Supreme Court Rejects Appeal on 280-billion-dollar Cigarette Case

by Rathi Manohar on June 29, 2010 at 3:13 PM
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Supreme Court Rejects Appeal on 280-billion-dollar Cigarette Case

Major tobacco companies were jubilant on Monday as the Supreme Court rejected the government's appeal to hear its demand of 280 billion dollars in cigarette-making profits.

The decision by the court not to hear the case is a potentially fatal blow to the government's efforts to recover earnings from what it says was 50 years of allegedly deceptive practices to get people hooked on smoking.

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Monday's rebuff marks the second time the Supreme Court has refused to hear the landmark case, in which the government under president Bill Clinton launched a massive racketeering suit in 1999 seeking a "disgorgement" demand of 280 billion dollars in tobacco firms' allegedly ill-gotten gains.

The court's nine justices also refused to hear the industry appeals to overturn a judge's 2006 findings that cigarette companies defrauded smokers and potential smokers about the health dangers of smoking.

Source: AFP
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