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Supreme court widens court options for vaping companies pushing back against FDA rules

Supreme court widens court options for vaping companies pushing back against FDA rules

WASHINGTON (AP) — The Supreme Court sided with e-cigarette companies on Friday in a ruling making it easier to sue over Food and Drug Administration decisions blocking their products from the multibillion-dollar vaping market.
The 7-2 opinion comes as companies push back against a yearslong federal regulatory crackdown on electronic cigarettes. It's expected to give the companies more control over which judges hear lawsuits filed against the agency.
The justices went the other way on vaping in an April decision, siding with the FDA in a ruling upholding a sweeping block on most sweet-flavored vapes instituted after a spike in youth vaping.
The current case was filed by R.J. Reynolds Vapor Co., which had sold a line of popular berry and menthol-flavored vaping products before the agency started regulating the market under the Tobacco Control Act in 2016.
The agency refused to authorize the company's Vuse Alto products, an order that 'sounded the death knell for a significant portion of the e-cigarette market,' Justice Amy Coney Barrett wrote in the majority opinion.
The company is based in North Carolina and typically would have been limited to challenging the FDA in a court there or in the agency's home base of Washington. Instead, it joined forces with Texas businesses that sell the products and sued there. The conservative 5th U.S. Circuit Court of Appeals allowed the lawsuit to go forward, finding that anyone whose business is hurt by the FDA decision can sue.
The agency appealed to the Supreme Court, arguing that R.J. Reynolds was trying to find a court friendly to its arguments, a practice often called 'judge shopping.'
The justices, though, found that the law does allow other businesses affected by the FDA decisions, like e-cigarette sellers, to sue in their home states.
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In a dissent, Justice Ketanji Brown Jackson, joined by Justice Sonia Sotomayor, said she would have sided with the agency and limited where the cases can be filed.
The Campaign for Tobacco-Free Kids called the majority decision disappointing, saying it would allow manufacturers to 'judge shop,' though it said the companies will still have to contend with the Supreme Court's April decision.
Attorney Ryan Watson, who represented R.J. Reynolds, said that the court recognized that agency decisions can have devastating downstream effects on retailers and other businesses, and the decision 'ensures that the courthouse doors are not closed' to them.
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Follow the AP's coverage of the Supreme Court at https://apnews.com/hub/us-supreme-court.
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Australia to reduce US beef import restrictions denounced by Trump as a ban
Australia to reduce US beef import restrictions denounced by Trump as a ban

Winnipeg Free Press

time25 minutes ago

  • Winnipeg Free Press

Australia to reduce US beef import restrictions denounced by Trump as a ban

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Small Brazilian coffee producers fear for the future after Trump's 50% tariff
Small Brazilian coffee producers fear for the future after Trump's 50% tariff

Winnipeg Free Press

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  • Winnipeg Free Press

Small Brazilian coffee producers fear for the future after Trump's 50% tariff

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Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue
Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue

Winnipeg Free Press

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Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue

WASHINGTON (AP) — Texas Attorney General Ken Paxton and his wife, Angela, are longtime owners of a $1.5 million house in a gated community outside Dallas. In 2015, they snapped up a second home in Austin. Then another. The problem: Mortgages signed by the Paxtons contained inaccurate statements declaring that each of those three houses was their primary residence, enabling the now-estranged couple to improperly lock in low interest rates, according to an Associated Press review. The lower rates will save the Paxtons tens of thousands of dollars in payments over the life of the loan, legal experts say. The records also revealed that the Paxtons collected an impermissible homestead tax break on two of those homes, and they have routinely flouted lending agreements on some of their other properties. It is a federal and state crime to knowingly make false statements on mortgage documents. It's also against the law in Texas to collect a homestead tax break on two separate properties. 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'I hope that if she's done something wrong, I hope that she's actually held accountable,' he told supporters last month. The Justice Department has launched a criminal investigation of James, FBI director Kash Patel told Fox News in May. The department received a criminal referral for Schiff last week from the Federal Housing Finance Agency, its director William Pulte confirmed in a social media post. Neither the Justice Department nor the FHFA responded to an inquiry about whether they may investigate Paxton, too. James' attorney, Abbe Lowell, urged the Trump administration to investigate Paxton instead. 'If this administration was genuinely interested in rooting out fraud, it appears they should stop wasting their time on the baseless and discredited allegations against the New York Attorney General James and turn their attention to Texas,' said Lowell, a prominent Washington attorney whose past clients include Hunter Biden, Ivanka Trump and Jared Kushner. In a statement, Marisol Samayoa, a Schiff spokeswoman, blasted the criminal referral as 'a transparent attempt' by Trump 'to punish a perceived political foe who is committed to holding him to account.' She added that Schiff disclosed to his lenders that he owned another home that was a principal residence and sought guidance from an attorney. It is unlikely that Paxton, a staunch Trump ally, will face the same federal scrutiny as James and Schiff. It's equally doubtful that Paxton will face much legal trouble in Texas: His office is one of the primary agencies tasked with investigating allegations of mortgage fraud. Ken Paxton and his spokesman did not respond to multiple requests for comment. Angela Paxton, who is a state senator in Texas, did not respond to requests made through her office. Three of the Paxtons' homes are each listed as a primary residence Documents reviewed by the AP show the Paxtons hold mortgages on three homes — one in suburban Dallas, two in Austin — that are each listed as their primary residence. The designation comes with a considerable financial upside. Interest rates on primary homes are significantly lower than those for mortgages on secondary homes or investment properties, saving buyers tens of thousands of dollars — if not more — over the life of a loan. Making a case against Paxton would require 'establishing both that Paxton was aware of the contents of the mortgage document, and also that he was actively aware at the time that he signed it that this was not going to be a primary residence,' said Jennifer E. Laurin, a professor at the University of Texas Law School in Austin. Legal experts say it is possible that the Paxtons' lenders prepared the documents and that the couple did not carefully review them before signing. Even if that were the case, some legal experts say that Paxton, as an attorney and Texas' top law enforcement officer, ought to have known better. 'If he filled out lender documents knowing that they were false, then that is a false statement to obtain a mortgage on favorable terms. That would be actionable,' said Arif Lawji, a veteran Texas real estate attorney. 'He's the chief enforcement officer. You have to be accountable for stuff you do that's wrong.' Paxton collected two 'homestead' tax breaks Low interest rates are not the only perk the Paxtons secured, records show. In 2018, they simultaneously collected homestead property tax breaks on their family's home in suburban Dallas, as well as on a $1.1 million home in Austin, property records and tax statements show. A homestead tax break is a property tax reduction that a homeowner is only eligible to collect on one property that is also their primary home. The suburban Dallas home is where the Paxtons' family has long resided. It's where Ken and Angela Paxton are registered to vote. It is located in the state Senate district that Angela Paxton represents in the Legislature, which Ken Paxton held before his election in 2014 to be attorney general. It's also where Ken Paxton's Senate campaign website until recently said he lived. Lawji said the Paxtons' simultaneous collection of two homestead tax breaks appears to be a more clearcut violation. That is because one must obtain a form and submit it to taxing authorities to receive such a tax break, making it an 'intentional act,' he said. The tax break was worth several thousand dollars, a fact that confounded real estate lawyers. 'Why would you try to do all of this,' Lawji said, 'when you are the attorney general? That's a bigger question to me than the money, when you are AG and have to enforce this law.' Paxton may have violated mortgage terms by renting properties Separately, land records indicate the Paxtons may have violated the terms of at least two mortgages on other houses they own. The mortgage on a home in College Station, Texas, says the property is for the Paxtons' exclusive use and cannot be rented out. Doing so would be grounds for terminating the mortgage, the document states. The home has been listed for rent on real estate websites on-and-off since at least 2022. Ken Paxton also holds a $1.2 million mortgage on a '5 bedroom luxury cabin' in Broken Bow, Oklahoma, that is for rent on Airbnb and other short-term rental sites, records show. The property's mortgage stipulates that it cannot be rented out. Representatives for Stifel Bank, Cornerstone Home Lending and Benchmark Mortgage, which issued the mortgages in question, did not respond to requests for comment. Schiff and James come under fire from GOP Paxton's real estate dealings are in many ways distinct from those of James and Schiff, the Democrats targeted by the Trump administration. The investigation of James centers on forms she signed in 2023 while helping a niece buy a home in Virginia. One form stated that James intended to occupy the home as her 'principal residence.' But in other documents, the New York attorney general made clear she had no intention of living there. An email to the mortgage loan broker two weeks before she signed the documents stated the property 'WILL NOT be my primary residence.' 'As I've said from the beginning, if prosecutors want to know that truth about Attorney General James' mortgage applications, we are ready and waiting with the facts,' said Lowell, James' attorney. For over a decade, Schiff owned homes in Maryland and California, the state he represents, that were both designated as his primary residence. In 2020, then a congressman, Schiff designated his Maryland property as a second home — a step Paxton has not taken. Paxton has faced legal and political challenges Paxton's real estate dealings are not the first time he has drawn scrutiny for his conduct while in office. Before his election as attorney general, Paxton, then a state senator, admitted in 2014 to violating Texas securities law and paid a fine. He spent roughly 10 years under state indictment on securities charges while serving as attorney general. The charges were eventually dropped in 2024. Other alleged misdeeds in office led to his impeachment by Texas' GOP-controlled House in 2023. He was acquitted in a trial by the Senate. Angela Paxton did not cast a vote in his impeachment trial and recently filed for divorce, citing Ken Paxton's infidelity and other 'recent discoveries.' She did not elaborate. What ultimately unleashed the impeachment push was Paxton's relationship with Austin real estate developer Nate Paul, who pleaded guilty this year to one count of making a false statement to a financial institution. In 2020, eight top aides in Paxton's office told the FBI they were concerned the state's top law enforcement official was misusing his office to help Paul over the developer's unproven claims about an elaborate conspiracy to steal $200 million of his properties. The House impeachment managers accused Paxton of attempting to interfere in foreclosure lawsuits and issuing legal opinions to benefit Paul. They also alleged that Paul employed a woman with whom Paxton had an affair in exchange for legal help and that the developer paid for expensive renovations to the attorney general's home in Austin. That would be the same house that he declared in mortgage documents was his third primary residence.

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