A federal appeals court in New York has cleared the way for major tobacco firms to appeal a lower-court decision allowing a huge class-action lawsuit on behalf of "light" cigarette smokers, Bloomberg News reported Nov. 17.

The $200-billion class-action case pits a group of smokers against companies like Philip Morris. Known as the Schwab case, the class-action lawsuit was certified in September by U.S. District Judge Jack Weinstein and is slated to begin in January.

Analysts cheered the decision to allow the appeal. "It's hugely positive," said Charles Norton, portfolio manager of the $64 million Vice Fund. "Schwab is the last remaining significant legal challenge."

Other defendants in the case are Reynolds American Inc., Brown & Williamson Tobacco Corp., Lorillard Tobacco Co., British American Tobacco, and the Liggett Group.

"Philip Morris USA looks forward to presenting its arguments before the U.S. Circuit Court of Appeals for the Second Circuit as to why the class certification in the Schwab case should be overturned," said company lawyer William Ohlemeyer.