EU Files New Complaint Against 2 Tobacco Firms

The European Commission on Monday filed a new complaint against Philip Morris Cos. and R.J. Reynolds Tobacco Holdings Inc. for cigarette smuggling after a U.S. judge dismissed the case last month.

U.S. District Judge Nicholas Garaufis ruled last month that the commission wasn’t injured by alleged smuggling of cigarettes into the 15-nation European Union and didn’t allow other EU members to sue.

The commission said Monday that the case was rejected on “a single technical point of law” and that the court “rejected in substance all other arguments” by the companies.

The original suit, filed in federal court in Brooklyn, N.Y., in November, was the first time the EU had sued U.S. companies in a U.S. court. It sought unspecified financial damages for violations of federal racketeering laws, alleging the smuggling cheated the EU out of billions in customs duties, fees and taxes.

The commission, the EU’s executive arm, filed the case in federal court in Brooklyn with Italy, Germany, France, Spain, Portugal, Greece, Belgium, the Netherlands, Finland and Luxembourg.

The 10 countries will have to prove that Philip Morris and R.J. Reynolds “actively participated” in smuggling, said John Coale, a Washington lawyer who represents smokers in lawsuits against cigarette makers.

R.J. Reynolds said that it couldn’t comment because it hasn’t seen the suit.

Philip Morris wasn’t immediately available for comment.

On the New York Stock Exchange, Philip Morris shares fell 40 cents to close at $44.77, and R.J. Reynolds shares rose 13 cents to close at $52.40.