Background:BAT's lawyers argued that the company, which is based in central London, should be exempt from the ruling because US law did not have the authority to hold a foreign company liable for its actions outside the US.
March 6, 2011 - Department of Justice - tobacco company defendants indeed violated the Racketeer Influenced Corrupt Organizations Act (RICO)...U.S. federal govt and 3-cigarette makers asked the Supreme Court to review racketeering verdict..
Using a Supreme Court ruling from last year involving National Australia Bank as a precedent, Judge Kessler ruled the US had limited authority in trans-national lawsuits against foreign companies.
"There is no evidence that Congress intended to criminalise foreign racketeering activities," Judge Kessler wrote. However, she ruled that BAT would still have to contribute to some of the legal costs of the US government because it won the original ruling. Philip Pfeffer, a lawyer for BAT, said that it was pleased with the decision.
Reference: BAT scores US court victory by Richard Blackden, US Business Editor , By Richard Blackden, US Business Editor 8:16PM BST 29 Mar 2011, telegraph.co.uk, 3/29/2011.
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