• The Washington Post/AP, Tuesday, November 28, 2006 12:30 PM

The U.S. Supreme Court on Monday let stand an Illinois Supreme Court ruling that dismissed a $10.1 billion verdict against Philip Morris USA in a class-action lawsuit involving "light" cigarettes. The lawsuit claimed Philip Morris knew when it introduced such cigarettes in 1971 that they were no healthier than regular cigarettes.

A judge in Madison County, Illinois, ruled in favor of the smokers in March 2003, saying the company misled customers into believing they were buying a less harmful cigarette. But the state high court overturned that ruling, saying that because the Federal Trade Commission allowed companies to characterize their cigarettes as "light" and "low tar," Philip Morris could not be held liable under state law--even if the terms it used could be found false or misleading.

William Ohlemeyer, Philip Morris USA's vice president and associate general counsel, says the decision "brings an end to the appeals process in this case."

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