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Cigarette-Smuggling Suit by EC Dismissed

IN BRIEF / TOBACCO

July 18, 2001|Bloomberg News

A federal judge dismissed a suit brought by the European Commission against Philip Morris Cos. and R.J. Reynolds Tobacco Holdings Inc. that accused the two largest U.S. tobacco companies of smuggling cigarettes into the European Union.

U.S. District Judge Nicholas Garaufis ruled the EC had not been injured and did not allow other EU countries to sue, according to a statement released by Philip Morris.

The EC sued in federal court in Brooklyn, New York, in November 2000, saying the tobacco companies conspired with drug dealers to cheat the EU out of billions of dollars in customs duties, fees and taxes.

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