U.S. Seeks to Pursue $280-Billion Claim

The Justice Department asked a federal appeals court to let it pursue a $280-billion racketeering claim against Altria Group Inc.’s Philip Morris USA, Reynolds American Inc. and other U.S. cigarette makers.

U.S. racketeering laws permit the forfeiture or “disgorgement” of profits that the industry allegedly made from selling cigarettes to people who started smoking as children, government lawyers argued in papers filed with the U.S. Circuit Court of Appeals for the District of Columbia.

The court’s rejection or acceptance of the government’s argument will determine whether the cigarette makers will face the possibility of a $280-billion judgment, which the companies have said would bankrupt them. A trial is scheduled to begin Sept. 21.