Private suits in state court against federal officers, or "any person acting under that officer," can be removed to federal court under the Federal Officer Removal Statute. The issue in this case is whether a highly regulated company qualifies as a person acting under a federal officer. The Supreme Court ruled 6/11/07 that it does not.
This class action was filed against Philip Morris alleging that "light" or "lower tar" cigarette advertisements were deceptive, but the company convinced the Eighth Circuit to remove the case to federal court because its ads were subject to the FTC's comprehensive regulations. The Supreme Court unanimously ruled that simply complying with federal regulations does not mean that a company is "acting under" the direction of a federal officer or agency. Rather, for removal to be appropriate, the company must actually be involved in assisting or helping to carry out the agency's work.
Thus, companies in highly regulated industries cannot use this removal statute to avoid state court systems that are sometimes hostile to them.