Supreme Court Turns Down Canada’s Suit Against R.J. Reynolds Tobacco Co.

by Mario Lozano on November 27, 2002

in Tobacco

WASHINTON — The Supreme Court on Monday turn down Canada’s attempts to use a U.S. anti-racketeering law to sue R.J. Reynolds Tobacco Co. over cigarette smuggling. Canadian officials claim R.J. Reynolds tried to get around taxes by smuggling cigarettes into Canada through an Indian reservation. Other countries jumped on the bandwagon by copying Canada’s $1 billion lawsuit.

The Supreme Court’s refusal to reinstate the case is a signal to foreign countries accusing American companies of wrongdoing, to use their own court systems. R.J. Reynolds Tobacco Co. is the second largest U.S. cigarette maker behind Philip Morris Inc.

(via The Associated Press)

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