On June 11, 2007, the U.S. Supreme Court ruled that companies subject to
regulation by federal government agencies who are sued by plaintiffs’ attorneys in state courts may not have their cases removed to federal courts where they are more likely to get a more favorable ruling. In a unanimous ruling, the Court rejected the argument by the Philip Morris that it can invoke the so-called Federal Officer Removal Statute, which permits certain state court cases to be removed or transferred to federal courts. The Court gave the statute a narrower reading, limiting its availability only to situations where the person or company is performing duties under the direct supervision of a federal officer or agency, rather than complying with regulations.