Industry Not Shielded From Suit, Judge Says
A federal judge ruled that the legal settlement reached between the tobacco industry and states six years ago did not shield cigarette makers from the federal government’s $280-billion suit.
The ruling was a victory for prosecutors, who asked U.S. District Judge Gladys Kessler to prevent the cigarette makers from arguing that the settlement with the states made the federal racketeering case moot.
The industry reached a $206-billion settlement with 46 states in 1998 to cover the cost of treating sick smokers. Four other states settled previously for $40 billion.
The Justice Department alleges tobacco companies deceived the public about the dangers of tobacco. The companies dispute the claims.
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