Judge Urges U.S., Tobacco Firms to Settle Case

A federal judge urged the U.S. government and cigarette makers Monday to renew efforts to settle the landmark racketeering case that accuses the industry of conspiring to downplay the dangers of smoking.

U.S. District Judge Gladys Kessler in Washington described the closed meeting as a “routine informational discussion with the parties urging them, once again, to consider the advantages of settling this case rather than the risks of litigating it.”

Kessler described the meeting in an order just hours after top executives of two major tobacco companies were seen leaving the courthouse.

Michael Szymanczyk, chief executive of Philip Morris USA, a unit of Altria Group Inc., and Susan Ivey, chief executive of Reynolds American Inc., left the meeting without commenting.

Two Justice Department lawyers involved in the trial left the courthouse ahead of the tobacco executives. They also declined to comment.

Kessler had asked representatives of the tobacco companies and the Justice Department to the meeting. Closing arguments in the trial that started in September ended June 9.

The two sides had held meetings this year at Kessler’s request in an unsuccessful effort to reach a settlement.

The government angered anti-smoking activists this month by drastically cutting one of the sanctions it was demanding should Kessler find that the tobacco companies violated racketeering laws.

In the closing arguments, the Justice Department asked that the companies be forced to fund a $10-billion, five-year quit-smoking campaign, rather than a $130-billion, 25-year program recommended by a government witness.

Targeted in the lawsuit, filed in 1999, are Altria and its Philip Morris unit; Loews Corp.’s Lorillard Tobacco unit, which has a tracking stock, Carolina Group; Vector Group Ltd.’s Liggett Group; Reynolds American’s R.J. Reynolds Tobacco unit; and British American Tobacco unit British American Tobacco Investments Ltd.