The vote was 2 to 1, leaving legal analysts predicting the case will be appealed to the U.S. Supreme Court.

 

The Wall Street Journal reports that in the ruling, the court said federal regulators failed to present data or evidence that  its warning label requirements would reduce the rate of smoking, which is the requirement's goal. 

The FDA declined to comment other than to say the agency is reviewing the ruling. An attorney for one of the tobacco companies, Lorillard Inc., characterized the ruling to the Journal as "a major victory." Attorneys had argued the labels violate the First Amendment right to free speech.

 

Despite the Appeals Court decision, questions remain since a March ruling by a different court gave a thumbs-up to the warning labels.