Opinion ID: 171009
Heading Depth: 2
Heading Rank: 4

Heading: Oklahoma Litigation

Text: Xcaliber is an Oklahoma limited liability company based in Pryor, Oklahoma. It began its business in 2001, after the MSA was executed and took effect. Xcaliber has chosen not to join the MSA and, therefore, is an NPM. KT & G is a Korean corporation that sells cigarettes in the United States and specifically in Oklahoma. It, too, has declined to join the MSA. The Oklahoma legislature enacted the Allocable Share Amendment in 2003; it took effect January 1, 2005. In December 2004, Xcaliber and KT & G filed suit in the Northern District of Oklahoma (Oklahoma district court) against the Oklahoma attorney general, W.A. Drew Edmondson, in his official capacity (Oklahoma). In that action, Plaintiffs challenged only the Allocable Share Amendment, and specifically did not challenge either the MSA or the originally enacted escrow statute. [6] Plaintiffs allege that the Allocable Share Amendment violates the Sherman Act, 15 U.S.C. § 1, and the United States and Oklahoma constitutions. The Oklahoma district court dismissed Plaintiffs' constitutional claims under Fed. R.Civ.P. 12(b)(6), concluding those causes of action failed to state a claim on which relief could be granted. The court heard evidence on the remaining Sherman Act claims, after which the court granted Oklahoma summary judgment on those claims. The district court later denied Plaintiffs' post-judgment motions for relief from judgment. KT & G appeals the Oklahoma district court's decisions in appeal No. 05-5175, while Xcaliber appeals those decisions in appeal No. 05-5178.