Double Danger For Big Tobacco

On Sept. 21 the US Justice Dept. is scheduled to make opening arguments in a civil Racketeer-Influenced & Corrupt Organizations Act (RICO) lawsuit asserting that the nation's biggest cigarette companies have engaged in an illegal conspiracy since 1953. The government is seeking disgorgement...

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Bibliographic Details
Published in:Bloomberg businessweek (Online) 2004-09 (3899), p.76
Main Author: Nanette Byrnes in New York, with John Carey in Washington
Format: Magazinearticle
Language:English
Subjects:
Bills
Conspiracy
Federal regulation
Government agencies
Litigation
Tobacco industry
Online Access:Get full text
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Summary:On Sept. 21 the US Justice Dept. is scheduled to make opening arguments in a civil Racketeer-Influenced & Corrupt Organizations Act (RICO) lawsuit asserting that the nation's biggest cigarette companies have engaged in an illegal conspiracy since 1953. The government is seeking disgorgement of a brow-raising $280 billion - almost the 6 defendant companies' entire profits during the 5-decade period. Big Tobacco has faced many legal challenges through the years but never one this daunting. And it comes at the exact same moment as a bill now in Congress proposing to give the Food & Drug Administration the power to regulate the manufacturing and contents of cigarettes - something the industry has energetically tried to avoid for most of its recent history. The measure passed the Senate by a wide margin in July. Although it faces skeptics in the House, it could very well reach a vote by October.
ISSN:0007-7135
2162-657X