A tobacco company's claim that it was a de-facto agent of the federal government because it is regulated by the Federal Trade Commission (FTC) has been rejected by the U.S. Supreme Court.

The Associated Press reported June 11 that the high court ruled against Philip Morris' bid to move a smoking liability case from state to federal court. The tobacco firm had argued that because the company is subject to FTC regulations it should be considered as acting under a federal officer and therefore shielded from state courts.

"A highly regulated firm cannot find a statutory basis for removal" from state to federal courts, wrote to Justice Stephen Breyer, who added that FTC's role regarding cigarettes "sounds to us like regulation, not delegation."

The Arkansas case in question pits a group of ex-smokers against Philip Morris; the plaintiffs argue that the company's marketing of light cigarettes violated the Arkansas Deceptive Trade Practices Act.

Companies often seek to move cases into federal courts, which are perceived as more sympathetic to corporate interests than state courts.