The US Supreme Court will decide if the European Union can sue R.J. Reynolds. The EU says that Reynolds sponsored cigarette smuggling in Europe.

The justices agreed Thursday 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 around the world 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.


The Associated Press contributed to this report..

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