Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Court Rules In Favor Of R.J. Reynolds Tobacco In Graphic Warnings Lawsuit

R.J. Reynolds Tobacco Company, an indirect subsidiary of Reynolds American Inc. (RAI: Quote), announced that the U.S. Federal District Court Judge Richard Leon ruled in favor of R.J. Reynolds Tobacco Company and other manufacturers in graphic warnings lawsuit.

The Judge held unconstitutional a regulation by the U.S. Food and Drug Administration that would have forced cigarette makers to place nine graphic health warnings on the top half of the front and back of all cigarette packages, and the top fifth of all advertising.

The company said the Court held that the proposed warnings violated the First Amendment by forcing the manufacturers to distribute an anti-smoking policy message.

Judge Leon noted that the Government can require companies to make "purely factual and uncontroversial" disclosures about the risks of their products, but stated that the graphic warnings crossed into unconstitutional territory.

The company note that the Court cited data included in FDA's regulation that showed the graphic warnings would have little to no effect in reducing tobacco use. In particular, FDA's analysis of the regulation estimated that the warnings would likely cause no statistically significant change in U.S. smoking rates.

The Court also noted that the chief expert report relied on by FDA conceded that the goal of such graphic warnings "is not to promote informed choice but rather to discourage consumption of tobacco products."

Register
To receive FREE breaking news email alerts for Reynolds American Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A number of major retailers will be open on Thanksgiving for early Black Friday shopping events. Kohl's department stores will kick off Black Friday sales two hours earlier this year, at 6 p.m. Thanksgiving Day, while Macy's, Bon-Ton and Best Buy will open at the same time. J.C. Penney and Sears... Twitter Inc. has replaced its head of product Daniel Graf just six months after luring him over from Google, according to multiple reports. Graf, previously known for his work leading Google Maps, will retain his vice president of product title and work on Twitter's geolocation features, the Wall... LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.