Court to review lawsuit against R.J. Reynolds

WASHINGTON (AP) — The Supreme Court will decide whether the European Union can pursue its lawsuit claiming that tobacco company R.J. Reynolds sponsored cigarette smuggling in Europe as part of a global money-laundering scheme with organized crime groups.

The justices recently agreed to review an appeals court ruling that said the EU and 26 of its member states were within their rights to sue in U.S. courts under federal racketeering laws.

The lawsuit alleges that RJR directed, managed and controlled the scheme that involved laundering money through New York-based financial institutions.

A federal judge threw out the claims, but a three-judge panel of the 2nd U.S. Circuit Court of Appeals ruled last year that racketeering laws can apply to crimes committed in foreign countries.