Mealey's Tobacco
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April 13, 2023
FTC Extends Deadline In Altria, Juul Appeal After Companies Part Ways
WASHINGTON, D.C. — The Federal Trade Commission extended its deadline to rule on an appeal of an administrative ruling recommending dismissal of the FTC’s antitrust claims against tobacco company Altria Group Inc. and e-cigarette maker Juul Labs Inc. (JLI) to give it more time to consider Altria and JLI’s recent motions seeking to dismiss the litigation as moot in light of Altria voluntarily unwinding its investment in JLI and seeking to discuss a potential settlement.
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April 11, 2023
9th Circuit Urged To Affirm Class Certification Against Altria In E-Cigarette MDL
SAN FRANCISCO — The members of two certified classes bringing claims against tobacco company Altria Group Inc. and its subsidiaries urge the Ninth Circuit U.S. Court of Appeals in an appellee brief to affirm certification of claims against Altria for allegedly causing a youth vaping crisis as an investor in e-cigarette maker Juul Labs Inc. (JLI), even though multidistrict litigation claims against JLI and its executives have since been settled.
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April 11, 2023
MDL Judge Denies Altria’s Bid For Summary Judgment In San Francisco Schools’ Suit
SAN FRANCISCO — The California federal judge overseeing multidistrict litigation against tobacco company Altria Group Inc. and its subsidiaries on April 10 denied Altria’s motion for summary judgment on claims brought against it by the San Francisco Unified School District (SFUSD) for negligence, public nuisance and violating the Racketeer Influenced and Corrupt Organizations (RICO) Act by causing a “vaping crisis,” which will be heard in an upcoming bellwether trial.
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April 03, 2023
Panel Affirms ITC Decision In Full In Win For R.J. Reynolds Tobacco
WASHINGTON, D.C. — A limited exclusion order barring Philip Morris USA Inc. and its affiliates from importing various tobacco heating products that infringe two R.J. Reynolds Tobacco Co. patents was upheld March 31 by the Federal Circuit U.S. Court of Appeals, which said a challenge to the validity of the patents fails.
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March 29, 2023
Illinois Panel Finds Jurisdiction Over Battery Maker In Exploding Vape Suit
CHICAGO — An Illinois appellate panel on March 28 affirmed a trial court’s personal jurisdiction over a Korean battery-maker’s subsidiary in a personal injury lawsuit brought by a man who claims that he was injured by an exploding e-cigarette device after finding that the company sold thousands of its batteries into Illinois for use in other products.
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March 29, 2023
Texas Supreme Court Questions Battery Maker On Jurisdiction In Exploding Vape Case
AUSTIN, Texas — The Texas Supreme Court during oral arguments questioned a Korean battery-maker and its U.S. subsidiary about their argument that a trial court lacked personal jurisdiction over them in a personal injury lawsuit brought by a man who was burned after a battery they manufactured exploded in his e-cigarette device, which the man’s counsel argues was a “foreseeable” use of the product.
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March 24, 2023
5th Circuit Keeps RJR Menthol Vapes On Market, Cites FDA’s ‘Secret’ Flavor Ban
NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on March 23 granted two consolidated petitions to stay the Food and Drug Administration’s marketing denial order (MDO) banning sales of a tobacco company’s menthol-flavored e-cigarette products pending appeal after finding the company likely to succeed in its argument that the FDA imposed a “secret” ban of all flavored e-cigarettes without notifying e-cigarette manufacturers.
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March 22, 2023
Tobacco Companies’ Suit Challenging California’s Flavor Ban Dismissed
SAN DIEGO — A California federal judge dismissed a lawsuit brought by tobacco companies and a retailers’ association against the California attorney general and San Diego County district attorney challenging a statewide ban of sales of flavored tobacco products, finding that the ban does not violate the dormant commerce clause of the U.S. Constitution and that the plaintiffs’ preemption argument is moot under Ninth Circuit U.S. Court of Appeals precedent.
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March 14, 2023
Rehearing Sought Before 8th Circuit In Challenge To City’s Flavored Tobacco Ban
ST. LOUIS — Tobacco companies and retailers on March 13 petitioned the Eighth Circuit U.S. Court of Appeals for en banc or panel rehearing of their challenge to a Minnesota city’s ordinance banning the sale of all flavored tobacco products, arguing that a panel’s recent ruling upholding the ban conflicts with U.S. Supreme Court precedent and could cause “regulatory bedlam.”
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March 13, 2023
Judge Dismisses Tobacco Companies’ Suit Against FDA Opposing Graphic Warnings
WASHINGTON, D.C. — A District of Columbia federal judge dismissed a lawsuit brought by several tobacco companies challenging the Food and Drug Administration’s proposed new graphic warnings for tobacco products after the parties jointly stipulated to dismissal in light of a ruling nullifying the new warnings issued in a parallel lawsuit in Texas federal court.
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March 13, 2023
Juul, Chicago Settle Youth Vaping Lawsuit For $23.8 Million
CHICAGO — The city of Chicago on March 10 announced that it has settled a complaint it brought against e-cigarette maker Juul Labs Inc. (JLI), which agreed to pay $23.8 million to resolve claims that it illegally marketed its vaping products to youth in Chicago with “colorful, playful” social media marketing.
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March 10, 2023
Vape Companies, Owner Say Court Improperly Found Jurisdiction In Chicago’s Suit
CHICAGO — Two e-cigarette companies and their owner on March 9 filed an amended motion for summary judgment in Illinois federal court on claims brought against them by the city of Chicago, arguing that the court improperly denied their motion to dismiss and found jurisdiction based on an estimated amount in controversy due to fines they could potentially face, while also seeking to exclude the city’s expert witness on youth marketing as “irrelevant.”
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March 09, 2023
San Francisco Schools Urge MDL Judge Not To Dismiss RICO Claims Against Altria
SAN FRANCISCO — The San Francisco Unified School District (SFUSD) urges the California federal judge overseeing multidistrict litigation against tobacco company Altria Group Inc. and its subsidiaries to deny Altria’s motion for summary judgment on SFUSD’s claims for violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act, rejecting the argument that a settlement it reached with e-cigarette maker Juul Labs Inc. (JLI) would render its claim for RICO damages a form of double recovery.
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March 08, 2023
Massachusetts High Court Questions Timeliness Of Smokers’ Wrongful Death Suits
BOSTON — The Massachusetts Supreme Judicial Court during consolidated oral arguments questioned attorneys as to whether the estates of two deceased smokers were barred from bringing wrongful death actions against tobacco companies after trial courts dismissed the lawsuits as time-barred based on the date of diagnosis of tobacco-related illnesses for the smokers’ injuries, rather than the date of death.
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March 07, 2023
Tobacco Company Argues In Favor Of Juror Interviews After Smoker Wins $6.5M
BOSTON — A tobacco company on March 6 filed a brief in a Massachusetts court denying that it will “harass” jurors by calling them to ask questions about a recent trial at which they awarded $5 million to a smoker with laryngeal cancer who also received $1.5 million in prejudgment interest and urging the court to deny the smoker’s emergency motion to prohibit it from contacting jurors. VIDEO FROM THE TRIAL IS AVAILABLE.
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March 06, 2023
Texas Supreme Court To Hear Battery Maker’s Challenge In Exploding Vape Case
AUSTIN, Texas — The Texas Supreme Court granted two petitions for review, one filed by a Korean battery-maker and one by its U.S. subsidiary, which are seeking to challenge a Texas appellate panel’s rulings affirming a trial court’s finding of personal jurisdiction over them in a personal injury lawsuit brought by a man who claims that they manufactured the battery that exploded in his portable e-cigarette vape device, causing him severe burns.
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March 02, 2023
U.S. Company Appeals Cancellation Of Trademarks In Cuban Cigar Dispute
ALEXANDRIA, Va. — An American cigar company recently filed an appeal in Virginia federal court seeking the reversal and vacatur of a Trademark Trial and Appeal Board (TTAB) decision canceling its trademarks in favor of Cuba’s state-owned tobacco company, which the American company says is precluded from challenging the trademarks after it brought similar claims 26 years ago that were rejected.
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February 28, 2023
8th Circuit Upholds Minnesota City’s Ban Of Flavored Tobacco Products
ST. LOUIS — Despite finding the language of federal legislation regulating tobacco sales “ambiguous,” an Eighth Circuit U.S. Court of Appeals panel on Feb. 27 affirmed a Minnesota city’s ordinance banning the sale of all flavored tobacco products as an exercise of the “traditional state police powers,” rejecting arguments by tobacco companies and retailers that the ban is preempted by federal regulation.
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February 27, 2023
High Court Won’t Hear Challenge To Los Angeles County’s Flavored Tobacco Ban
WASHINGTON, D.C. — The U.S. Supreme Court on Feb. 27 denied three tobacco companies’ petition for a writ of certiorari challenging a Ninth Circuit U.S. Court of Appeals split panel’s affirmance of Los Angeles County’s ban on flavored tobacco products, which the tobacco companies and a dissenting circuit judge had said was identical to past cases in which the high court deemed product bans federally preempted.
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January 25, 2023
LA Says High Court Need Not Review Challenge To Its Flavored Tobacco Ban
WASHINGTON, D.C. — Los Angeles County and its Board of Supervisors (LA) urge the U.S. Supreme Court to deny three tobacco companies’ petition for a writ of certiorari challenging a Ninth Circuit U.S. Court of Appeals split panel’s affirmance of LA’s ban on flavored tobacco products, arguing that the county’s ban is distinguishable from past cases where the high court deemed product bans federally preempted (R.J. Reynolds Tobacco Company, et al. v. County of Los Angeles, California, et al., No. 22-338, U.S. Sup.).
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February 22, 2023
Judge Approves Final Altria Shareholder Settlement, Reduces Attorney Fees
RICHMOND, Va. — A Virginia federal judge granted final approval to a $117 million settlement of shareholder claims against tobacco company Altria Group Inc. for harming the company by investing in Juul Labs Inc. (JLI) after a third set of revisions but issued a slightly reduced attorney fees award of $15 million after noting that finalization of the settlement required “a healthy dose of assistance from the Court.”
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February 16, 2023
At Trial, Man Who Sued Cigarette Maker Says He Didn’t Know Of Cancer Risk Until 2005
BOSTON — Jurors in a Massachusetts court recently heard opening arguments at trial regarding claims brought by a 78-year-old former smoker with cancer who says a tobacco company concealed the risks of cigarettes and deceived him into developing a nicotine addiction, while a lawyer for the tobacco company said the smoker chose to use cigarettes independently. VIDEO FROM THE TRIAL IS AVAILABLE.
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February 13, 2023
Judge Dismisses Nicotine Pouch Makers’ Settled Trade Secrets Row
LOS ANGELES — A California federal judge entered an order granting a joint stipulation by Swedish and American companies involved in a trade secrets and patent dispute over the manufacturing and selling of nicotine pouches to voluntarily dismiss two pending lawsuits between them with prejudice, with each party agreeing to bear its own attorney fees and costs.
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January 17, 2023
RJR Appeals Royalties, Patent Rulings In $95M E-Cigarette Design Row
GREENSBORO, N.C. — R.J. Reynolds Vapor Co. (RJR) filed notice that it is appealing a district court’s judgment against it, denial of its motion for a new trial and grant of Altria Client Services LLC’s motion for ongoing royalties on RJR’s Vuse Alto e-cigarette, after a jury ordered RJR to pay more than $95 million for infringing three of Altria’s patents for pod-based vape technology.
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February 10, 2023
Cigar Maker Moves For $20M In Sanctions From Rival For Fraud In Antitrust Suit
LOS ANGELES — A cigar maker that previously won the vacatur of a $44 million verdict in favor of a rival cigarillo maker and its parent company after proving the verdict was based on fraudulent evidence recently moved in a California federal court for sanctions of nearly $20 million representing its attorney fees and costs incurred defending against the rivals’ “bad-faith conduct throughout this litigation.”