Judge Rejects Request to Revive Smoking Suit

A federal judge rejected a U.S. Justice Department request to revive parts of its lawsuit against the tobacco industry, handing a victory to Philip Morris Cos. and other cigarette makers.

In a pair of rulings, U.S. District Judge Gladys Kessler reaffirmed an earlier decision in which she threw out two of the three legal theories being pressed by the federal government in its multibillion-dollar case.

Kessler’s latest rulings come amid settlement talks between the industry and the Bush administration.

A Justice Department spokeswoman said the government was reviewing the decision and had no comment.

The original lawsuit sought to recoup money spent by the federal government to treat sick smokers through Medicare and other health-care programs. The complaint also included a racketeering count that sought to recover “ill-gotten gains” from the industry.

Kessler’s rulings mean that only the racketeering claims can go forward. She said the government doesn’t have a basis for invoking the Medical Care Recovery Act or the Medicare Secondary Payer provisions of the Social Security Act.