From the instant word came that the federal government had literally bailed out of its ongoing civil racketeering case by inexplicably scaling back its long-standing damage demand from $130 billion to just $10 billion, every anti-smoking activist has cried “foul.”

Yesterday, several health advocacy groups filed a motion with Judge Gladys Kessler to join the litigation for the limited purpose of presenting “arguments solely on the issue of the appropriate and necessary remedies that should be imposed in this case.”

Judge Kessler, who is presiding over this nonjury case, will make a determination as to the amount of the award, if any, after all filings on the issue are complete.

Amid great speculation and controversy as to its underlying motivations, the Justice Department filed its formal damage request motion on Wednesday. The $10 billion for a five-year stop-smoking program and a ten-year $4 billion for an anti-smoking education program is all that is being asked of an industry that stands accused of a decades-long conspiracy of fraud on the public and government agencies.   

As previously reported, the manner in which the trial came to an end has raised questions as to just what motivated the dramatic and unexpected last-minute shift in the government’s position with respect to the amount of damages it was seeking in its six-year-old civil racketeering case against the tobacco industry for engaging in a 50-year conspiracy to defraud and addict smokers by intentionally concealing information regarding the dangers associated with smoking.   

For years, the government has pursued the tobacco industry for “a decades-long pattern of material misrepresentations, half-truths, deceptions and lies that continue to this day.” (Excerpt from summation of Associate Attorney General Sharon Eubanks.)
The monetary damages the government had always been expected to demand from the industry was based on the extensive testimony of expert witnesses and was anticipated to be a $130-billion, 25-year smoking cessation program along with other penalties and injunctive relief prohibiting tobacco companies from targeting young smokers in their marketing campaigns.

Much of the evidence presented by the government was comprised of highly incriminating internal documents that included written memos from tobacco executives and scientists which described plans to encourage young people to smoke and to keep the public ignorant of the potentially dangerous and addictive nature of cigarette smoke.

Even the trial judge, herself, questioned the reduction in the demand as suggesting “that there are some additional influences being brought to bear on the government’s position in this case.”

Less than a month before summations, the Justice Department had filed an extensive legal brief with the trial judge which argued that the $130 billion smoking-cessation program was an appropriate and legally permissible sanction that was unaffected by the recent federal appeals court ruling that determined the government could not seek to force the tobacco industry to pay $280 billion in ill-gotten gains.

A group of 50 lawmakers has sent a letter to Attorney General Alberto R. Gonzalez requesting that he not enter into any agreement with the tobacco industry “based on the unreasonably weak demands made by the government last week.”

Based upon the abandonment of the Justice Department’s previously aggressive stance with respect to damages and penalties, the attorneys for the tobacco industry defendants have now indicated that they will ask Judge Kessler to throw out the entire case claming the government isn’t entitled to any of the remedies it now seeks to have imposed.

This entry was posted in Legal News. Bookmark the permalink.

© 2005-2019 Parker Waichman LLP ®. All Rights Reserved.