Appeals court to hear case of tobacco settlement

A three-judge federal appeals panel is set to hear arguments over whether tobacco companies may legally challenge the 1998 Master Settlement Agreement between the states and 19 tobacco product makers.

The U.S. 6th Circuit Court of Appeals in Cincinnati will hear arguments Thursday morning in a case brought by General Tobacco against 52 attorneys general and the tobacco makers, seeking more than $1 billion in damages.

U.S. District Judge Jennifer Coffman in Louisville tossed the suit in January 2009, ruling that the company couldn't prove the settlement amounted to either a conspiracy or anti-competitive behavior by the government.

General Tobacco is the sixth-largest tobacco company in the U.S. and maker of GT-One brand cigarettes.