Appeals Panel Denies U.S. Request in Big Tobacco Trial [04/20-6]

Excerpts from: Appeals panel denies U.S. request in big tobacco trial

AP [04/20/05]


An appeals court on Wednesday denied the government's request to reconsider a decision barring the Justice Department from seeking $280 billion from major cigarette companies in a civil racketeering trial.

The Justice Department last month asked the full U.S. Court of Appeals for the District of Columbia Circuit to reconsider a panel's decision that the government could not use a federal racketeering law to seek the huge penalty.

The panel's 2-1 decision, issued in February, ruled the government was limited to "forward looking" remedies, and seeking money earned through fraudulent means - or "disgorgement" - was not one.

A spokesman for the Justice Department confirmed the decision, but had no immediate comment on the government's plans.

The government alleges cigarette makers conspired for decades to deceive the public about the dangers of smoking. The case went to trial in U.S. District Court in September.

U.S. District Judge Gladys Kessler could still impose restrictions on the tobacco companies, such as limiting marketing or requiring the industry to fund public health campaigns or smoking cessation programs.

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