Prosecutors Want Big Tobacco to Pay Legal Fees in Racketeering Case

By Matt Green

Published on September 01, 2005

On Aug. 24, U.S. Justice Department lawyers said tobacco companies should pay this additional penalty -- an estimated $140 million -- for using "questionable" litigation tactics during the nine-month trial.

Justice Department lawyers already asked for a $14 billion penalty against Big Tobacco, alleging it mislead the public about the dangers of smoking.

U.S. District Judge Gladys Kessler is considering both penalties. A decision could take months.

In 1999, the U.S. government sued cigarette makers such as Philip Morris USA and Reynolds American Inc. The government contends that for 50 years tobacco companies deceived consumers about the dangers of smoking, which include emphysema and lung cancer.

Tobacco companies countered that the government didn't prove cigarette makers operate an illegal business -- a key requirement to prove racketeering. They also say prosecution of tobacco companies is restricted due to a 1998 settlement between Big Tobacco and state governments.

The U.S. government had sought about $280 billion in past tobacco profits. The U.S. Appeals Court stopped this, saying civil racketeering law allowed only forward-looking remedies. The government reduced the penalty to $14 billion for educational and quit-smoking programs.

The government has asked the U.S. Supreme Court to review the appeals court decision.

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