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Action on Smoking and Health
A National Legal-Action Antismoking Organization Entirely Supported by Tax-Deductible Contributions
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Federal Judge Presses Forward on $280B Case Against Big Tobacco [09/01-3]
Excerpts from: Judge Presses Forward On $280B Tobacco Industry Case
By Mark Wigfield Dow Jones Newswires [08/31/04]
The judge hearing the government's $280 billion racketeering case against the
tobacco industry stressed Monday her determination to move forward with a Sept.
21 trial.
"We are three weeks away from trial," U.S. District Court Judge Gladys Kessler wrote in an order granting an emergency motion by the government to have Australian witnesses testify by teleconference or video conference. "Both counsel and the court need to maximize the efficient use of their time and resources."
In a research note published last week, Prudential Equity Group said a possible delay in the Justice Department's sweeping case could work to the tobacco industry's advantage. Prudential cited as a possible reason for delay the industry's challenge in a federal appeals court of the government's argument that it can seek recovery of $280 billion in allegedly ill-gotten profits from the industry.
The U.S. Court of Appeals for the District of Columbia will hear oral arguments on the challenge on Nov. 19. Even with Kessler's trial anticipated to last seven to eight months, it's not clear whether the appeals court will rule quickly enough for the issue to be settled in time for arguments on the matter in the trial court.Prudential believes a delay to January 2005 would increase the likelihood that the Justice Department will settle the case, if President Bush is re-elected. The tobacco case was brought by the Clinton administration's Justice Department.
The Justice Department had no comment.
Two of the companies involved in the case said Monday they don't plan to ask this week for further delay of the Sept. 21 trial. Kessler has scheduled a final pretrial conference for Thursday.
Asked if Lowe's Corp.'s Lorillard Tobacco Co. would ask for a delay, William Newbold, the Thompson Coburn LLP attorney who represents the company, said, "Not to my knowledge. I have no knowledge of that topic."Attorneys for Altria Group Inc.'s Philip Morris USA and Vector Group Ltd.'s Liggett Group Inc. did not immediately return calls asking for comment.The suit is the largest ever brought by the government against the tobacco industry. The Justice Department has accused the companies of conspiring to deceive consumers over the course of four decades about the dangers of cigarettes.
Along with disgorgement of profits, the government is seeking tough restrictions on the marketing, manufacturing and sale of tobacco products.
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