Finkelstein Thompson LLP has announced that a federal court has certified a nationwide class in a multi-billion dollar RICO case alleging fraud in the marketing and sale of so-called "light" cigarettes.  The ruling paves the way for trial, which is set to begin in January of 2007.  Burton H. Finkelstein, senior partner for Finkelstein Thompson LLP - one of two firms designated lead counsel for Plaintiffs, along with Cohen, Milstein, Hausfeld & Toll, P.L.L.C. - commented:  "This case provides the last, best opportunity to hold the tobacco industry financially accountable on a nationwide scale for decades of fraud during which they have reaped billions of dollars in profit.  We are pleased with the certification and look forward to presenting our evidence to a jury."

Judge Jack B. Weinstein of the United States District Court for the Eastern District of New York called the evidence of fraud "quite strong" and concluded that Plaintiffs "have demonstrated that there is more than enough merit to their case to justify the time and expense of a consolidated trial."  The Court explained that Plaintiffs' claims "are largely the same; all were allegedly defrauded as a result of a common fraudulent scheme developed and executed by the defendants over several decades in order to protect the viability of the cigarette industry and to maintain and increase profits."

The Court describes class members as "both the direct target of the fraud and the party injured" and cites Plaintiffs' showing that they "did not receive what was represented - less tar and nicotine or, more generally, a less dangerous cigarette."

The opinion frames one of the over-arching issues as "whether the American legal system, faced with an alleged massive fraud, must throw up its hands and conclude that it has no effective remedy for what at this stage of the litigation must be assumed to be a huge continuing violation of consumers' rights."  The Court concludes that, "modern civil procedure, scientific analysis, and the law of large numbers used by statisticians provide a legal basis for a practical and effective remedy.  The plaintiffs are entitled to the chance to prove their allegations."

Significantly, the Court also denied several motions for summary judgment filed by defendants relating to issues of causation, injury, damages, and the statute of limitations. Judge Weinstein initially set the date for jury selection in the action for January 22, 2007.  Defendants have appealed the class certification decision, resulting in the postponement of trial.