6153: ORDER #57-Remand: the Parties shall appear at a Status Conference on June 30, 2015, at 10:45 a.m

June 21, 2015 9:24 am by Gene Borio

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EXCERPT:

More than 8 years ago, this Court enjoined the Defendants from presenting any false or misleading information about cigarettes and smoking to the public, and ordered them to make corrective disclosures on five topics about which the Court found they had made fraudulent public claims. While the Court of Appeals upheld the substance of those five disclosures, it also concluded that the introductory language to them could not be justified because they “reveal nothing about cigarettes; instead, they disclose defendants’ prior deceptive conduct. Accordingly, they cannot be justified on the basis of [that Court’s] 2009 opinion.”United States v. Philip Morris USA Inc., No. 13-5028, 2015 WL 2445064, at *9 (D.C. Cir. May 22, 2015) (emphasis in original). The Court ruled that “[e]ven if the preambles [to the disclosures] would discourage cigarette manufacturers from falsely marketing cigarettes by arming consumers against misinformation, thus making RICO violations unprofitable[,] . . . ‘[s]uch a remedy [would] reach [] beyond the bounds of section 1964(a), which authorizes the district court to order injunctions [only] to prevent and restrain fraudulent statements about smoking and health and addic.tion. “‘ Philip Morris, 2015 WL 2445064, at *10 (quoting United States v. Philip Morris USA Inc., 566 F.3d 1095, 1149 (D.C. Cir. 2009)). However, “[t]he bulleted statements will achieve this goal because they ‘reveal[] the previously hidden truth about [the manufacturers’] products . . . .’ The preambles, however do no such thing and may not be justified on grounds of general deterrence.” Id. (emphasis in original).

In order to comply with the Court of Appeals’ remand for further proceedings in accordance with its Opinion, the Court hereby

ORDERS, that the Parties shall appear at a Status Conference on June 30, 2015, at 10:45 a.m., to discuss briefing and scheduling of future submissions.

END EXCERPT

FULL TEXT:

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
UNITED STATES OF AMERICA,

Plaintiff,

v.

PHILIP MORRIS USA, INC., et al,
Defendants.

Civil Action No. 99-2496 (GK)

ORDER #57-Remand

On May 22, 2015, the Court of Appeals issued an Opinion and Judgment in this case [13- 5028], affirming in part, reversing in part, and remanding for further proceedings in accordance with its Opinion, to this Court.

More than 8 years ago, this Court enjoined the Defendants from presenting any false or misleading information about cigarettes and smoking to the public, and ordered them to make corrective disclosures on five topics about which the Court found they had made fraudulent public claims. While the Court of Appeals upheld the substance of those five disclosures, it also concluded that the introductory language to them could not be justified because they “reveal nothing about cigarettes; instead, they disclose defendants’ prior deceptive conduct. Accordingly, they cannot be justified on the basis of [that Court’s] 2009 opinion.”United States v. Philip Morris USA Inc., No. 13-5028, 2015 WL 2445064, at *9 (D.C. Cir. May 22, 2015) (emphasis in original). The Court ruled that “[e]ven if the preambles [to the disclosures] would discourage cigarette manufacturers from falsely marketing cigarettes by arming consumers against misinformation, thus making RICO violations unprofitable[,] . . . ‘[s]uch a remedy [would] reach [] beyond the bounds of section
1964(a), which authorizes the district court to order injunctions [only] to prevent and restrain fraudulent statements about smoking and health and addic.tion. “‘ Philip Morris, 2015 WL 2445064, at *10 (quoting United States v. Philip Morris USA Inc., 566 F.3d 1095, 1149 (D.C. Cir. 2009)). However, “[t]he bulleted statements will achieve this goal because they ‘reveal[] the previously hidden truth about [the manufacturers’] products . . . .’ The preambles, however do no such thing and may not be justified on grounds of general deterrence.” Id. (emphasis in original).

In order to comply with the Court of Appeals’ remand for further proceedings in accordance with its Opinion, the Court hereby

ORDERS, that the Parties shall appear at a Status Conference on June 30, 2015, at 10:45 a.m., to discuss briefing and scheduling of future submissions.

June 11, 2015

Gladys Kessler

United States District Court

Copies via ECF to all counsel of record

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