The Washington Post
Thursday, 9/23/99, Page A01
by Lorraine Adams and David A. Vise
[continued from Index page back]
[Provided by Tobacco Daily News Summaries]
The United States Justice Department filed a multi-billion
dollar civil lawsuit against the tobacco industry yesterday in
an effort to recoup money spent on health care for
smoking-related illnesses. The lawsuit will also seek to force
the industry to finance smoking education and cessation
programs. In addition, the Justice Department announced that
there are no "pending criminal division investigations" of the
tobacco industry, signaling the end of the long-standing
criminal investigation.
The federal government spends approximately $20 billion a year
to treat smoking-related diseases, and statutes of limitations
will permit the government to go back three years to recover
costs under the Medical Care Recovery Act and six years under
the Medicare law governing health payments for the elderly. The
suit also included a civil RICO (Racketeer Influenced, Corrupt
Organizations Act) charge, which has no statute of limitations,
and will allow the government to seek a portion of any
"ill-gotten" tobacco industry profits since 1954, when tobacco
executives met in New York to discuss a public relations
campaign countering scientific evidence about the dangers of
smoking.
The 131-page complaint charges the five largest cigarette
companies and their public relations and research associations
with engaging in a 45-year conspiracy to mislead, defraud and
conceal from the American public and the federal government the
deadly and addictive effects of smoking.
The case has been assigned to US District Court Judge Gladys
Kessler. Kessler was appointed to the Federal bench by
President Clinton in 1994 and has a reputation for encouraging
out-of-court settlements.
At the press conference announcing the lawsuit, Attorney General
Janet Reno said, "As millions of cigarette smokers have gone to
the hospital for lung cancer and emphysema, the American
taxpayer has footed the bill. Today, we're asking the tobacco
companies to pay their fair share." President Clinton said the
Federal government had to file this lawsuit because the tobacco
industry refused to resolve this problem legislatively. "We did
our best to work with [the tobacco industry] and with the
Congress to resolve many of these matters legislatively, and
they declined." Greg Little, associate general counsel of
Philip Morris said his company would "not succumb to politically
correct extortion. We will not settle this lawsuit. We're
right on the law. We're right on the facts. We will prevail in
this lawsuit."
Additional Sources:
New York Times, (9/23/99) "Tobacco Industry Accused of Fraud in Lawsuit by U.S.", MARC LACEY
[Full Text:
http://www.nytimes.com/library/politics/092399tobacco-lawsuit.html]
Los Angeles Times, (9/23/99) "Tobacco Industry Says Suit Is Government Hypocrisy", ALISSA J. RUBIN,
MYRON LEVIN, HENRY WEINSTEIN / Times Staff Writers
[Full Text:
http://www.latimes.com/HOME/NEWS/NATION/t000085340.html]
USA TODAY, (9/23/99) "US Sues Cigarette Makers For 'Fraud'", Wendy Koch, p. A1
USA TODAY, (9/23/99) "Government Says Cover-Up Lasted 45 Years", Wendy Koch and Kevin Johnson,
p. A1
WALL STREET JOURNAL, (9/23/99) "US Sues Tobacco Makers In Massive Case", David Cloud and Gordon
Fairclough, p. A3
