Supreme Court Rejects EU Lawsuit Against Reynolds American
June 20 2016 - 11:13AM
Dow Jones News
By Brent Kendall
WASHINGTON -- The Supreme Court on Monday threw out a European
Union lawsuit filed in U.S. courts that alleged Reynolds American
Inc. directed a money-laundering scheme involving cigarette sales
through organized crime groups.
The court, in a divided opinion by Justice Samuel Alito, said a
New York-based appeals court was incorrect when it allowed the
lawsuit to go forward.
The EU had been attempting to pursue Reynolds and its
subsidiaries in U.S. courts for more than a decade. It and 26
member states allege the cigarette maker engaged in "grave
misconduct" by participating in a money laundering cycle in which
criminal groups smuggled illegal narcotics into Europe and
laundered the resulting proceeds through illegal cigarette
purchases with Reynolds.
The EU argued the U.S. lawsuit was allowed because some of
Reynolds' alleged conduct took place in the U.S. and involved
domestic enterprises. It also argued that Congress meant for U.S.
racketeering law to apply to overseas conduct in some
circumstances.
Reynolds, which has denied the allegations, argued the EU was
improperly attempting to use the U.S. legal system to address
European matters.
Write to Brent Kendall at brent.kendall@wsj.com
(END) Dow Jones Newswires
June 20, 2016 10:58 ET (14:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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