Tobacco product manufacturer claims Georgia's regulations hurt business

ATLANTA (Legal Newsline) – A Virginia corporation alleges regulations in Georgia are violating its rights to do business in that state.

S&M Brands Inc. filed a complaint on Dec. 2 in the U.S. District Court for the Northern District of Georgia, Atlanta Division against the state of Georgia ex rel. Christopher M. Carr, attorney general, citing the First and 14th amendments to the U.S. Constitution and other counts.

According to the complaint, the plaintiff alleges that the defendants placed in effect a regulatory framework that threatens the plaintiff from doing business in Georgia. The suit states the requirements limit how statutory-mandated escrow funds can be invested and adds conditions on how small tobacco product manufacturers, like the plaintiff, can sell their products in Georgia.

The plaintiff seeks injunction against the defendants, order that state of Georgia to return all excess funds to S&M Brands, court costs and any further relief the court grants. It is represented by Seth T. Ford and Bryan M. Haynes of Troutman Sanders LLP in Atlanta.

U.S. District Court for the Northern District of Georgia, Atlanta Division Case number 1:16-cv-04469-SCJ