Supreme Court refuses to hear Big Tobacco case.

Big Tobacco dodged a huge bullet today when the Supreme Court decided to reject a justice department appeal to hear the penalty case. Details available here.

The elements of the case hinged on the argument that past profits should have been disgorged by the cigarette manufacturers, with the price of $280 billion requested as the amount for past profits due to deceptive advertisement and sale of the addictive and dangerous product. However, in February of this year a US Circuit court ruled 2-1 that the government couldn't use RICO laws to go after past profits, and today's Supreme Court decision effectively ended that argument.

The next step in this ongoing case will come later this year in US district court when judge Gladys Kessler rules on another major tobacco case with the Justice Department revolving around funds for educational campaigns, removal of company officers and greater oversight of the companies marketing these products.