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Tobacco Firms to Seek Dismissal of Suit

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Bloomberg News

Tobacco companies are expected to file papers Monday seeking dismissal of a Justice Department lawsuit aimed at recovering billions of dollars that government health insurance programs have spent to treat smoking-related illnesses. Philip Morris Co., R.J. Reynolds Tobacco Holdings Inc. and other cigarette makers are scheduled to file their response in federal court to the landmark Justice Department civil case against the industry. In September, the Justice Department sued to recoup more than $20 billion a year that the government said its Medicare and other health programs have spent treating sick smokers. The government is demanding that the tobacco industry relinquish what the U.S. calls five decades of “ill-gotten” profits from cigarette sales. It’s also asking for a court order to force cigarette makers to finance research, anti-smoking ads and programs to help smokers quit. Tobacco companies have said the suit has no merit. Industry analysts noted that the government has required cigarette packages to carry warnings about the health risks of smoking since 1964. The case is distinct from a $246-billion settlement that tobacco companies previously reached with states. The companies settled the state suits without admitting wrongdoing.

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