On April 1, 2016, the Texas Supreme Court ruled that the state could impose a special tax on cigarette manufacturers that were not part of a multibillion-dollar settlement agreement reached with the major tobacco companies in the late 1990s.
Significant Cases
Judge Rules that Vaping is Not Smoking
Posted in Significant Cases, State Regulatory
On February 5, 2016, a New York City Judge ruled that vaping is not the same as smoking under New York State law and that e-cigarette use is not necessarily banned in the same places as smoking.
Tobacco Companies to Pay $125 Million Reinstatement of Escrow Funds to Pennsylvania
Posted in Significant Cases, State Regulatory
On December 23, 2015, the Pennsylvania Supreme Court denied several tobacco companies’ petition for appeal of a Commonwealth Court ruling that Pennsylvania is entitled to reinstatement of more than $125 million in funds under the 1998 Master Settlement Agreement (MSA) with the tobacco industry.
E-Cigarette Company Defeats Class Certification in False Advertising Case
Posted in Significant Cases
On February 2, 2016, the Central District of California denied class certification in a claim for false advertising related to the sale of electronic cigarettes. In re NJOY, Inc. Consumer Class Action Litigation, CV 14-428, (C.D. Cal. Feb. 2, 2016). Plaintiffs, a group of consumers, brought suit under the California Consumer Legal Remedies Act, California’s Unfair Competition Law, and Florida’s Deceptive and Unfair Trade Practices Act, alleging that: (1) NJOY engaged in a false and misleading advertising campaign conveying the message that its electronic cigarettes are safer than traditional combustible tobacco cigarettes; and (2) NJOY omitted material information from its packaging, including both an ingredient list and the potential risks associated with certain ingredients.
Troutman Sanders Tobacco Practice Publishes Article on Pennsylvania’s Ongoing MSA Payment Battle in Smokeshop Magazine
An article by the Troutman Sanders Tobacco practice appears in the February issue of Smokeshop Magazine. The article, titled “Pennsylvania’s Legal Battle Over MSA Payments Keeps Twisting” discusses the ongoing battle between Pennsylvania and major tobacco manufacturers regarding disputed 2003 Master Settlement Agreement (“MSA”) escrow payments.
Class Action Suit Filed Against E-Cigarette Importer
Posted in Significant Cases
A California consumer has filed a class action lawsuit against Fumizer, LLC alleging the company made false claims that their e-cigarettes can aid smokers in quitting cigarettes, while neglecting to inform consumers of other alleged health risks.
Utah Regulators Take Enforcement Action Against Three E-Cigarette Companies
Posted in Legislation, Significant Cases
The Utah Department of Commerce recently announced enforcement action against three e-cigarette companies for alleged violations of state consumer protection laws. A copy of the Department’s press release is attached here: 14-08-27_dcp-e-cigarette
Lawsuit Challenges USDA’s Failure to Collect Tobacco Buy-Out Assessments from Tribal Manufacturers
Posted in Significant Cases
On August 14, 2014, R.J. Reynolds Tobacco Company (“RJR”) and Santa Fe Natural Tobacco Company, Inc. (“Santa Fe”) sued the United States Department of Agriculture (the “USDA”), among others, in the United States District Court for the District of Columbia. In their two-count complaint, RJR and Santa Fe allege violations of the Fair and Equitable Tobacco Reform Act (the “FETRA”) and the Administrative Procedure Act (the “APA”).
Big Win for Small Tobacco in Texas
Posted in Significant Cases, State Regulatory
In 2013, the Texas legislature introduced and approved House Bill 3525, which imposed a 55-cent-per-pack fee on cigarettes manufactured by companies that did not participate in the Texas tobacco Settlement Agreement. The Texas Small Tobacco Coalition and Global Tobacco, Inc. filed a lawsuit challenging the fee against the Texas Attorney General and Comptroller.
E-Cigarette Patent Litigation Continues
Posted in Intellectual Property, Significant Cases
The saga of plaintiff Timothy Sheridan, named inventor of U.S. Patent No. 7,415,982 for a “Smokeless Pipe,” continues. In the latest chapter, Sheridan filed a pro se complaint for patent infringement against the United States government in the Court of Federal Claims on August 4, 2014, alleging that the government somehow prevented Sheridan from enforcing the ‘982 patent. Underlying that allegation is Sheridan’s contention that all currently marketed e-cigarettes and vaporizers infringe the ‘982 patent.