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Reynolds American to Face Suit on Money Laundering Claims

Reynolds American Inc., maker of Camel cigarettes, can be sued by the European Union over claims it orchestrated a worldwide scheme to launder drug money, a federal appeals court ruled in reviving a lawsuit filed more than a decade ago.

The EU can use U.S. racketeering law to sue Reynolds American, a three-judge panel of the court in Manhattan ruled, reversing a lower-court judge’s decision to dismiss the suit. The lawsuit was originally filed by the European Community, which was legally replaced by the EU in 2009.