The Supreme Court refused Monday to consider whether foreign governments can file civil lawsuits in U.S. courts to collect taxes from American companies.
Ten members of the European Community and several political subdivisions of Colombia had sought reinstatement of lawsuits they had filed against several cigarette manufacturers, including R.J. Reynolds Tobacco Co. and Philip Morris Inc.
The foreign governments accused the cigarette manufacturers of knowingly selling cigarettes to smugglers and alleged the activities were linked to terrorism. The Colombian subdivisions - each similar to a state - also alleged that the cigarette-smuggling fueled drug trafficking and organized crime.
The 2nd U.S. Circuit Court of Appeals affirmed a trial judge's dismissal of the cases, which was based on a long-standing legal doctrine that encourages American courts to stay out of foreign tax matters.
Details here from the AP via FindLaw.com.