Reply #5: Tobacco seeks new discovery in DOJ racketeering case [View All]

[UpInArms]

Tobacco seeks new discovery in DOJ racketeering case

http://www.marketwatch.com/news/story.asp?guid=%7BBA660EFF%2D141A%2D40AC%2DA259%2D3BC8301577A3%7D

WASHINGTON (MarketWatch) -- Tobacco industry lawyers on Tuesday requested additional discovery to prepare for the remedies phase of the government's racketeering trial against the industry.

In late February, District Court Judge Gladys Kessler, who's hearing the nonjury trial, granted the Justice Department's request to postpone its remedies phase until after the industry's defense, which is in its second month.

"It is unquestionable that the discovery is relevant and it is unquestionable that it is necessary in light of the midtrial re-invention of the government's remedies case," industry lawyers wrote in a brief to Kessler.

The government had sought $280 billion in disgorgement of past tobacco profits and proceeds in order to prevent future fraud, but it was left scrambling when an appeals court panel rejected that effort, saying disgorgement wasn't aimed at preventing future fraud.

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DOJ has conceded in court papers that the disgorgement ruling necessitated a recalculation of available penalties should the industry be found to have committed racketeering fraud by denying smoking's health effects and addictiveness over decades.

Other penalties include industry funding of smoking cessation programs, antismoking ads aimed at youth and court-appointed industry monitors that would have the power to fire senior industry executives.

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(off topic - but ....)