$280bn lawsuit against US tobacco companies may be snuffed out

ON the eve of a $280 billion racketeering trial of major cigarette makers, political and legal uncertainties are still hanging over the US government’s long-awaited case.

With opening arguments set for tomorrow, observers of the largest racketeering case in history say the outcome could still depend on twists and turns outside the courtroom of US District Judge Gladys Kessler.

The racketeering lawsuit, filed by the Clinton administration in 1999, could be drastically curtailed or snuffed out entirely by an appeal still pending, or a settlement after the November presidential elections, say financial analysts and anti-smoking groups.

If it runs its course, the trial is expected to take about six months.

Justice Department officials express confidence they can persuade the judge that the cigarette makers deliberately misled the public about the risks of smoking in a massive conspiracy going back to the 1950s.

“The government has provided extensive evidence to support our case. We look forward to presenting it in court,” said Peter Keisler, assistant attorney general in the department’s civil division.

Tobacco companies are equally confident.

“We do not have any plans to settle this case,” Peggy Roberts, a spokeswoman for Phillip Morris USA said.

The lawsuit seeks to force the industry to give up $280bn worth of past profits and impose tougher rules on marketing, advertising and warning claims on tobacco products.

Tobacco foes worry the aftermath of the November election will give President George W Bush an opening to either drop the racketeering case or settle it on terms favourable to the tobacco companies.