I've only very quickly skimmed the opinion, but the bottom line is that the Supreme Court held that the UCL claim is preempted:
We summarize: Plaintiffs’ cause of action against defendant tobacco companies is based on two laws: Penal Code section 308 (which does not itself regulate advertising but is based on concerns about smoking and health) and the state unfair competition law (which does regulate advertising but is not itself based on concerns about smoking and health). By combining these two laws in a single claim, plaintiffs seek to regulate cigarette advertising on the ground that it targets minors and encourages them to begin smoking. As the United States Supreme Court made clear in Lorillard, supra, 533 U.S. 525, the FCLAA preempts any state law or cause of action that seeks to regulate cigarette advertising on that basis. To the extent it concluded otherwise, our opinion in Mangini, supra, 7 Cal.4th 1057, has been superseded by the high court’s later decision in Lorillard, and Mangini is therefore overruled.
In re Tobacco Cases II, ___ Cal.4th ___ (Aug. 2, 2007) (slip op. at 20). I do not know what impact, if any, this ruling will have on the other Tobacco II case pending in the Supreme Court.
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