PTI, Inc. v. Philip Morris Inc.

ORDER GRANTING DEFENDANTS’ MOTIONS TO DISMISS PLAINTIFFS’ FIRST AMENDED COMPLAINT

I

Introduction

In November 1998, the five major domestic tobacco companies entered into a contract, termed the Master Settlement Agreement (“MSA”), with representatives of forty-six states, the District of Columbia, and five territories. Pursuant to the MSA, the states agreed to dismiss their pending suits (or to refrain from filing suit) against the tobacco companies in exchange for yearly payments, to be used to defray health costs from smoking-related illnesses and to fund smoking prevention programs. See M.S.A. § at 2. This suit is one of a series of legal challenges to the M.S.A. § and statutes passed in conjunction with it. To date, these suits have been uniformly unsuccessful.

Plaintiffs in the instant dispute are entities engaged in the business of cigarette re-entry and/or importation of cigarettes into the United States. See First Amended Complaint (“FAC”) ¶¶ 12-20. They deal in “repatriated” cigarettes, defined as those produced domestically for sale abroad that are later imported back into the United States, and “gray market” cigarettes, defined as those produced abroad for sale in…