Court Upholds Fine Against R.J. Reynolds

R.J. Reynolds Tobacco Holdings Inc. must pay a $14.8-million fine for handing out free packs of cigarettes at an event where children were present, a California appeals court ruled.

R.J. Reynolds had sought to overturn the fine for violating California’s ban on tobacco-product giveaways on public grounds where minors might be in attendance. The company argued that the state law was preempted by a federal cigarette labeling law.