Uncertainties Linger as U.S. Tobacco Trial Gets Underway
Legal experts agree that the success of the U.S. government's $280-billion racketeering lawsuit against tobacco companies could depend on a number of developments outside court, Reuters reported Sept. 19.
Political and legal uncertainties surround the case, which is being heard by U.S. District Judge Gladys Kessler. For instance, the case could be considerably shortened or stopped completely depending on an appeal still pending, or a settlement could follow the November presidential elections.
The trial is expected to take about six months, include testimony from more than 100 witnesses, and involve nearly 120 million documents.
The government contends that cigarette manufacturers knowingly misled the public about the risks of smoking in a conspiracy that dates back to the 1950s.
"The government has provided extensive evidence to support our case. We look forward to presenting it in court," said Peter Keisler, assistant attorney general in the Justice Department's civil division.
But tobacco companies are also confident they will win. "We do not have any plans to settle this case," said Peggy Roberts, a spokeswoman for Phillip Morris USA. "We're focused on going to trial, defending ourselves."
In addition to Phillip Morris USA, the other cigarette makers named in the lawsuit are Loews Corp.'s Lorillard Tobacco unit; Vector Group Ltd.'s Liggett Group; Reynolds American Inc.'s R.J. Reynolds Tobacco unit; and British American Tobacco Plc unit British American Tobacco Investments Ltd.
Anti-smoking groups are concerned that if President Bush wins the November election, he could either drop the case or settle on terms that favor the tobacco companies.
"One has to be very concerned immediately after the election -- whatever the result -- that this administration will try to settle the case to the profit of the major tobacco companies," said Matthew Myers, president of the Campaign for Tobacco-Free Kids.
Some Wall Street analysts said a settlement could occur after the elections, but only if the appeals court rules in the industry's favor. "It becomes politically feasible at that point, I think, to have a resolution by non-litigation means," said one Wall Street analyst, who spoke on the condition of anonymity.
Back to Drug and Alcohol Rehab News Articles
