08/24/2012 10:29 am ET Updated Oct 24, 2012

Graphic Cigarette Warning Labels Struck Down By U.S. Appeals Court

WASHINGTON, Aug 24 (Reuters) - A U.S. appeals court ruled on Friday that cigarette companies do not need to comply with new federal rules that require them to put graphic warning labels on their products.

The 2-1 decision by a court in Washington, D.C., contradicts a ruling in a similar case by another court in March, setting up the possibility that the U.S. Supreme Court will weigh in on the dispute.

Five cigarette companies challenged the rules from the U.S. Food and Drug Administration.