Wednesday, June 24, 2009

Manufacturing, marketing, promotion and health consequences

The two injunctions at issue sufficiently specify the activities enjoined as to provide Defendants with fair notice of the prohibited conduct. The district court did not abstractly enjoin Defendants from violating RICO or making false statements, but instead specified the matters about which Defendants are to avoid making false statements or committing racketeering acts: the manufacturing, marketing, promotion, health consequences, and sale of cigarettes, along with related issues that Defendants have reason to know are of concern to cigarette consumers.
This is not a generalized injunction to obey the law, especially when read in the context of the district court’s legal conclusions and 4,088 findings of fact about fraud in the manufacture, promotion, and sale of cigarettes. These injunctions may be broad, but breadth is warranted “to prevent further violations where a proclivity for unlawful 68 conduct has been shown.”
Defendants complain that the volume of findings in this case actually make understanding the injunctions more difficult and chill speech because some of the district court’s findings present “express prohibitions” whereas others, like the use of white filter paper for cigarettes, “simply reflect the district court’s disapproval” of aspects of Defendants’ business practices without finding the conduct fraudulent.
This objection answers itself, as the plain terms of the injunctions prohibit only conduct that would constitute a racketeering act or a “material false, misleading, or deceptive statement or representation,” not all activities the court mentioned in its findings.

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