Appeals Court Upholds Tobacco Deal

Feb 22, 2012

A Federal Appeals Court has ruled that the 1998 National Settlement between 46 states and 19 tobacco companies is valid and doesn't amount to a conspiracy or anti-competitive behavior by the government. The U-S 6th Circuit Court of Appeals in Cincinnati rejected claims from General Tobacco, a now-closed company based in North Carolina. The company had claimed the agreement it was misled into taking part in the agreement, causing it to effectively shut down five years later.

General Tobacco's attorney says the company is disappointed by the ruling and is now reviewing its options for further appeal.  The Kentucky Attorney General's office was the lead defendant in the case.  The appeal arose after U-S District Judge Karen Coffman dismissed General Tobacco's challenge to the agreement in 2009.