U.S. appeals court tosses $800 billion tobacco suit

NEW YORK (Reuters) - The U.S. Court of Appeals for the 2nd Circuit decertified as a class, a group of cigarette smokers who were allegedly deceived into believing "light" cigarettes were healthier than "full-flavored" cigarettes.

The smokers sued nine tobacco companies for $800 billion in economic damages stemming from their purchases of light cigarettes, and in 2006 U.S. District Judge Jack B. Weinstein certified the class.

The group of smokers "allegedly deceived -- by defendants' marketing and branding -- into believing that 'light' cigarettes were healthier than 'full-flavored' cigarettes," sued under the Racketeer Influenced and Corrupt Organizations Act.

The defendants in the case include Altria Group Inc.'s Philip Morris USA unit; Reynolds American Inc's R.J. Reynolds Tobacco Co; Loews Corp's Lorillard Tobacco unit; Vector Group Ltd's Liggett Group; and British American Tobacco Plc's British American Tobacco (Investments) Ltd.

The three-judge panel, in a unanimous 39-page ruling, decertified the class and would require that each individual smoker prove that she or he had selected the product for perceived health benefits.

Altria shares rose 6 cents to $22.13 in midday trading on the New York Stock Exchange.