$280 Billion Suit against Big Tobacco Gets Go-Ahead
Jun 1st, 2004 • Posted in: NewsWASHINGTON
A federal judge last week gave the green light to the continuation of the largest civil racketeering suit in U.S. history — a bid by the U.S. government to force the tobacco industry to disgorge $280 billion in past profits.
The 1999 federal suit, filed one year after a landmark $206 billion settlement between Big Tobacco and 46 states, sought to mimic the states’ effort to recover the costs of treating sick smokers.
U.S. District Judge Gladys Kessler later threw out that portion of the government’s suit, but last week agreed that the trial could proceed to test allegations of racketeering and fraud by cigarette makers.
The government contends that Big Tobacco lied for decades about the addictive nature of nicotine, about the health risks of smoking, and about the industry’s efforts to market its dangerous products to children.
As punishment, the government is seeking $280 billion — a figure representing 30 years of cigarette sales to smokers under 21, adjusted for inflation, reported the Los Angeles Times.
The Clinton-era suit was dealt a setback when the incoming Bush administration slashed the resources of investigators building the case. A congressional outcry later got the funds restored, reported the Washington Post.
Although cigarette firms tried to have the suit tossed out, Kessler last week rejected their arguments.
If federal prosecutors can prove that the industry lied to smokers and could be discouraged from similar behavior by being fined, then damages might be warranted, she ruled last week.
The trial, which is expected to last between three and five months, is scheduled to begin September 13, according to the Associated Press.
Defendants in the case include Altria-owned Philip Morris, British American Tobacco, Brown & Williamson, Liggett, Lorillard, R. J. Reynolds Tobacco, the Counsel for Tobacco Research, and the Tobacco Institute.
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