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Cigarette makers lose US appeal | Cigarette makers lose US appeal |
(20 minutes later) | |
A US appeals court has largely upheld a landmark ruling that cigarette makers lied about the health risks of smoking. | A US appeals court has largely upheld a landmark ruling that cigarette makers lied about the health risks of smoking. |
The tobacco firms had appealed against a 2006 decision that banned labels such as "low tar" and "light". | The tobacco firms had appealed against a 2006 decision that banned labels such as "low tar" and "light". |
That ruling found companies including Philip Morris USA guilty of fraud and violating racketeering laws. | |
Friday's judgement by the Court of Appeals in Washington endorsed it, but said that two trade organisations could be dismissed from the suit. | Friday's judgement by the Court of Appeals in Washington endorsed it, but said that two trade organisations could be dismissed from the suit. |
The two groups - the Council for Tobacco Research-USA and Tobacco Institute - did not make or sell products. | The two groups - the Council for Tobacco Research-USA and Tobacco Institute - did not make or sell products. |
"Defendants knew of their falsity at the time and made the statements with the intent to deceive," Friday's ruling said. | "Defendants knew of their falsity at the time and made the statements with the intent to deceive," Friday's ruling said. |
The 2006 ruling said firms had set up a "gentleman's agreement" under which they agreed not to compete over whose cigarettes were the least damaging to health. | |
Lawyers for the tobacco companies denied that they had conspired to avoid public discussion of health risks. | |
Its original ruling also required firms to issue "corrective statements" about health effects and addiction. | |
It has not been applied while the case has been under appeal. | It has not been applied while the case has been under appeal. |
There was no immediate comment from cigarette makers on Friday's decision. |