Tommie Hu$tle
Member
WASHINGTON (Ruters ) The judge in the racketeering case against cigarette-makers wondered Wednesday whether "additional influences" prompted the government to drastically reduce a sanction it is seeking against the industry.
During a second day of closing arguments in the trial, U.S. District Judge Gladys Kessler speculated about the Justice Department's decision to seek a $10 billion, 5-year quit-smoking program, far smaller than a $130 billion, 25-year program proposed last month by a government witness.
"Perhaps it suggests that there are some additional influences being brought to bear on the government's position in this case," Kessler said.
The government's reduced request, outlined in court on Tuesday, has provoked speculation by tobacco analysts and some lawmakers that politics played a role in the decision. (Related: U.S. scales back key tobacco demand to $10B)
"Big Tobacco is one of the top donors to Republicans, and it is getting what it paid for," New Jersey Democrat Frank Lautenberg said in a statement.
Associate Attorney General Robert McCallum, in court for the arguments, declined to comment on Kessler's remarks when approached by reporters.
A lawyer for Philip Morris told Kessler that the drastic change in the government's position proved the entire idea of imposing a national quit smoking program was ill-conceived.
"Whether the price of the smoking cessation program is $130 billion or $10 billion or 99 cents, it is still a fatally flawed program," Ted Wells told the judge.
Wells said the quit smoking program was a public health initiative that should be debated by Congress, but not a legal remedy designed to prevent any future wrongdoing.
"Your honor should not take up the government's invitation to engage in social policy engineering," Wells said.
Targeted in the government's lawsuit, filed in 1999, are Altria Group (MO) and its Philip Morris USA unit; Loews' Lorillard Tobacco unit, which has a tracking stock, Carolina Group (CG); Vector Group's Liggett Group; Reynolds Americans R.J. Reynolds Tobacco unit (RJR); and British American Tobacco unit British American Tobacco Investments (BTI).
The companies deny they illegally conspired to promote smoking and say the government has no grounds to pursue them after they drastically overhauled marketing practices as part of a 1998 settlement with state attorneys general.
A lawyer for the Justice Department made the scaled-back request on Tuesday as the government summed up its case in the eight-month trial that accuses major tobacco companies of conspiring to mislead the public about the dangers of smoking.
"Our concern is that now there are political considerations," said William Corr, executive director of the Campaign for Tobacco Free Kids.
A group of Democrats, including Lautenberg, called for an inspector general investigation into possible political interference in the case.
Even with the reduced figure, Kessler Tuesday questioned whether the quit smoking program would satisfy an appeals court ruling from February that required any remedies to stop future misconduct rather than punish past behavior.
Smells fishy