Altria Group Inc's Philip Morris USA unit and two co-defendants filed to overturn the verdict, while the government argues the appeals court wrongly denied the disgorgement of billions of dollars in ill-gotten gains by the tobacco industry.

In May, a three-judge panel of the U.S. Court of Appeals for the District of Columbia affirmed a trial judge's verdict against the cigarette makers, finding they violated federal anti-racketeering laws by conspiring to lie about the dangers of smoking.

If the Supreme Court agrees to take the case, it could redefine the reach of the Racketeer Influenced and Corrupt Organizations Act.

Besides Philip Morris, maker of Marlboro cigarettes, the appeals court ruling was challenged Friday by Lorillard Inc, home of the Kent and Newport brands, and the R.J. Reynolds Tobacco unit of Reynolds American Inc, maker of Camel and other cigarettes.

The Illinois Supreme Court today rejected a bid by imprisoned former Gov. George Ryan to keep a portion of his lucrative government pension that was built up before his corrupt reign as governor and secretary of state.

The high court’s 6-1 decision cost the disgraced former Republican governor $70,824 a year, sending an unmistakable message from the court to Illinois’ governing elite that cronyism and corruption do not pay.

“As the victims of Ryan’s crimes, the taxpayers of the state of Illinois are under no obligation to now fund his retirement,” Justice Robert R. Thomas wrote in the court’s majority opinion.

The state General Assembly Retirement System had moved to strip Ryan, who turns 76 next Wednesday, of the entire $197,037 pension he was drawing annually up until his 2006 conviction on racketeering, conspiracy, mail fraud and other corruption charges linked to his tenure as governor and secretary of state.

But last year, a state appeals court reversed that decision, saying he should get to keep pension earnings from his 24 years as a Kankakee County official, state legislator and lieutenant governor – posts in which he was not accused of criminal wrongdoing.

“Although Ryan held multiple public offices over the course of his time in the system, all of those offices were in service to a single public employer — the state of Illinois. And it was the state of Illinois whose trust Ryan betrayed when he committed 16 job-related felonies,” Thomas wrote.

The lone dissenting justice was Anne Burke, who contended a 2005 ruling by the court in another case should dictate that Ryan keep his pension earnings from before his time as secretary of state and governor.

“I do not intend to diminish in any way the seriousness of the criminal acts committed by the former governor. Also I understand the very human impulse to want to punish Ryan for his wrongdoings by depriving him of all of his pension benefits,” Burke wrote. “However, while I sympathize with such impulses, our constitutional obligation is to follow the law, not our personal preferences.”

Cigarette maker Philip Morris, a unit of Altria Group Inc., asked the U.S. Supreme Court to overturn a landmark ruling that found the tobacco industry violated federal racketeering laws for deceiving the public about the dangers of smoking.

The U.S. Court of Appeals for the District of Columbia Circuit last year affirmed most remedies that a trial judge imposed against tobacco companies in 2006, which included restrictions on tobacco marketing and a requirement that the industry make corrective public statements about the health effects and addictiveness of smoking.

The appeals court ruled unanimously that there was ample evidence to conclude that the tobacco industry intended to deceive the public about the dangers of smoking. The court also said the government had adequately proved that the tobacco industry was likely to commit future violations of the Racketeer Influenced and Corrupt Organizations Act, or RICO, unless restrictions were imposed.

Philip Morris, whose top brand is Marlboro, said the government is perverting the understanding of the racketeering law.

"Absent further review, the government will henceforth be free to pervert RICO into a device for evading the legislative process, penalizing and chilling public debate on scientific matters, and constraining constitutionally protected speech through vague and sweeping injunctions," Philip Morris said in its appeal.

Other companies targeted by the government include Camel-cigarette maker R.J. Reynolds, a unit of Reynolds American Inc., and Lorillard Inc. They are expected to file appeals to the Supreme Court.

Maui County is suing Merrill Lynch, Pierce, Fenner & Smith Inc. in federal court over access to $32 million invested in student-loan auction-rate securities, county officials announced Wednesday.

The county purchased securities from Merrill Lynch with the understanding they were safe, short-term, liquid investments, the officials said.

"The County of Maui was told that the investments could be easily accessed, just like cash," said Maui Mayor Charmaine Tavares. "Assurances by Merrill Lynch at the time of the investment turned out to be false, and we are seeking justice for the taxpayers of Maui County."

Merrill Lynch spokesman Bill Halldin defended the company.

"We acted appropriately, made relevant disclosures to the county concerning auction rate securities, and intend to vigorously defend ourselves," he said.

County officials said about $44 million in student-loan auction-rate securities (SLARS) were purchased through Merrill Lynch between Aug. 16, 2007, and Jan. 16, 2008, and today, the county owns $32 million of the securities that are not liquid.

"Maui County seeks to recover its money," said Joachim Cox of Goodsill Anderson Quinn & Stifel LLP, special counsel for the county.

Freedom Communications asked a bankruptcy judge on Tuesday to approve the sale of the East Valley Tribune and several other Phoenix-area publications for about $2 million.

Irvine, Calif.-based Freedom Communications Holdings Inc. put the Tribune up for sale shortly after it filed for bankruptcy protection in September. The company said it planned to close the paper Dec. 31 if no buyer emerged and estimated that shutting it down would cost $1.5 million.

Thirteenth Street Media, a Boulder, Colo.-based company owned by Randy Miller, made an offer for the Tribune in November. Miller expanded his bid in January to include the Daily News-Sun in Sun City, the Ahwatukee Foothills News, Glendale/Peoria Today, Surprise Today, and the Clipper direct-mail coupon magazine.

Because Freedom is under bankruptcy protection, a judge must approve the sale, which is contingent on no better offers being made. The motion filed in U.S. Bankruptcy Court in Delaware said Freedom would accept offers until March 5.

Freedom will continue to publish the papers pending court approval of the sale. Freedom will remain the owner of its other paper in Arizona, The Sun in Yuma.

Smith & Nephew Plc, Europe’s largest maker of shoulder and knee implants, was awarded $4.7 million in a patent-infringement trial against smaller rival Arthrex Inc. over a device to fix a graft to a bone.

Arthrex said in a statement it will appeal the Feb. 12 jury decision and is “confident the verdict will be overturned on appeal.” It said it doesn’t expect the verdict will interrupt sales of its RetroButton ACL graft fixation product. Smith & Nephew said it will seek a court order to halt sales of some devices.

The dispute is over the attachment of the grafts used to replace the anterior cruciate ligament, or ACL, in the knee that connects the femur bone in the thigh with the tibia bone in the shin. It’s one of the most commonly injured ligaments during athletic activity. The grafts are ligaments taken from other parts of the body, typically the hamstring, patella or Achilles region, said Smith & Nephew spokesman Joe Metzger.

“Smith & Nephew has a long and proud history of providing medical devices that help surgeons to deliver positive patient outcomes,” Mike Frazzette, president of Smith & Nephew Endoscopy, said in a statement. “As a result, we will vigorously protect our intellectual property rights against Arthrex and other companies that infringe our patents.”

Commercial law firm Carson McDowell has promoted four associates to partners of the firm, reflecting the growth of the business.

The firm, which has over 100 people working in its Belfast office, made Emma Cooper a partner in its property practice, Stuart Murphy a partner in construction, Dawn McKnight a partner in corporate and commerical and Leigh Linton a partner in litigation.

Senior partner Alan Reilly said “These promotions reflect the growth which we are still experiencing within the firm.