UNITED STATES
Supreme Court opens term with fraud case

Lawyers for Altria went before the Supreme Court on Monday to argue that Washington is to blame if anyone felt tricked into thinking that light cigarettes were less dangerous than regular smokes.

The plaintiffs are three residents from the northeast state of Maine who smoked Marlboro Lights and Cambridge Lights for 15 years. They have sued Altria and its Philip Morris USA unit for fraud under Maine's Unfair Trade Practices Act stating that they had been injured by their reliance on what they termed false statements by the companies.
Altria counters that cigarette packaging falls under the domain of the US Federal Trade Commission (FTC), which failed to act even though they were aware that light cigarettes were no less a health hazard than regular ones.
A federal court in Maine initially ruled in favour of Altria, before an appeals court overturned its ruling.
If the highest court in the US rules against Altria, tobacco manufacturers could find themselves forced to pay out staggering legal settlements to ex-smokers. (pi)

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