Arkansas ‘Light’ Case to Stay in Federal Court

A lawsuit filed by Arkansas smokers who claim Altria Group Inc.’s Philip Morris USA misled them about the safety of “light” cigarettes belongs in federal not state court, an appeals panel ruled.

The Federal Trade Commission exercises “an unusually high level of government participation and control” over light cigarettes, the unanimous three-judge panel in St. Louis said. Federal courts have jurisdiction when a defendant is sued “for actions taken under the direction of a federal officer,” the court said.

“It cannot seriously be argued that the FTC does not direct and control the advertising of cigarettes,” the panel said in denying a request by the smokers to return the case to state court.

Altria shares rose 30 cents to $69.91.