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US high court throws out EU suit, sides with RJRT

The Supreme Court sided with RJ Reynolds Tobacco (RJRT) in throwing out a suit by the European Union originally filed against RJR Nabisco and associated companies for alleged cigarette smuggling, the New York Times said.

The EU and 26 member states contended lost customs and tax revenue amounted to billions of dollars, the newspaper said on its website. The court in a 4-3 decision ruled RJR Nabisco, which ceased operating as a single entity in 1999, could not be sued under the RICO federal racketeering statute for conduct abroad, the Times said.

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