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American tobacco Companies have avoided payment of fine in amount of 280 billions
November 1, 2010
United States Supreme Court has refused hearing of the case at the suit of the government to major tobacco Companies, in which government has set up Ódefence in amount of 280 billions USD informs AFP. So, tobacco manufacturers, most likely, have won the case that lasted more than 10 years.
President Bill Clinton administration began this process back in 1999. American government has filed a suit against tobacco Companies, demanding compensation for harm that was caused to population by cigarettes sale and another products harmful for health during several decades.
However, in 2005 Court of Appeals in Washington has decided to consider government's claims for hundreds billions of USD of tobacco Companies groundless. Eventually, initiation of legal action by administration was declined.
At the same time highest judicial agency in USA has rejected appeal of tobacco Companies that tried to contest court's decision of lower instance. In 2006 Senior Judge Gladys Kessler has delivered judgment about deceiving by Companies both smokers and potential smokers about risk for their health.
Judge has required numerous restrictions on advertisement, marketing and cigarettes sale and has assigned to tobacco Companies to stop denying harm of their products for health. However to claim money from corporations she couldn't because of decision of the Court of Appeals.
Decision of Washington district court in 2009 has supported major part of Kessler's demands, but again has rejected government's claims. Court has also resolved that Federal laws don't provide courts with right to declare national anti-smoking campaign. Information about Supreme Court decision has increased considerably price for stocks of major tobacco Companies. On June 28th Altria has added 3, 25 per cents but Reymold American - 4, 05 per cents.
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