June 28, 2004 - Tobacco Firms Allowed to Appeal Ruling

Tobacco Firms Allowed to Appeal Ruling Regarding Profits Earned From Advertising to Minors

(New York) A U.S. district judge approved a motion from Philip Morris USA allowing major tobacco companies to appeal a May 21 decision that says cigarette makers must return profits earned in the past from advertising to minors who later became regular smokers.

District Judge Gladys Kessler previously denied a motion to disallow the government's bid for disgorgement, after which the tobacco companies asked to question whether disgorgement was the appropriate remedy in the Department of Justice's lawsuit.

In its lawsuit, the Justice department claims tobacco companies received ill-gotten gains in the past, and should return the money to prevent future wrongdoings.

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