Tobacco Payments Not Anti-Competitive: Judges

Law360, New York (October 31, 2006, 12:00 AM EST) -- A U.S. appeals court ruled Monday that Kentucky can continue to enforce laws requiring small cigarette companies to make payments to help cover smoking-related health costs, despite accusations that the current legislation violates federal antitrust laws.

Three small cigarette companies, Cibahia Tabacos Especias Ltda, a manufacturer; Tritent International Corp., an importer; and DWI LLC, a wholesaler, originally sued Kentucky in September 2004 on the grounds that two state statutes that enforced the big tobacco settlement, the Master Settlement Agreement, encouraged anti-competitive behavior and restrained trade....
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