Court: U.S. can seek tobacco money

Case could be biggest civil racketeering case in history

? A federal judge ruled Monday that the Justice Department could seek $280 billion in tobacco industry money as part of the government’s case against cigarette manufacturers, clearing the way for the biggest civil racketeering suit in history.

The tobacco industry had argued in a motion that the government should not be allowed to seek the money, which Justice Department lawyers allege was earned illegally.

Tobacco lawyers argued the government failed to distinguish between money allegedly earned through fraud and money earned lawfully. But U.S. District Court Judge Gladys Kessler said in a written ruling that whether the government had sought the correct amount should be weighed at trial.

Kessler said the companies could be ordered to hand over the money sought by the government as long as Justice lawyers demonstrate a reasonable likelihood the industry will violate racketeering laws in the future.

Philip Morris USA attorney Bill Ohlemeyer said the government would have trouble proving future wrongdoing was likely to occur. “There is no question that Philip Morris USA and other tobacco companies have dramatically changed the way their products are marketed,” Ohlemeyer said.

He added that Philip Morris, the largest U.S. cigarette manufacturer, was considering appealing Monday’s ruling.

R.J. Reynolds Tobacco Corp. was also considering an appeal, said company spokesman Seth Moskowitz.

Anti-smoking groups applauded the ruling in the case, which the Bush administration inherited from actions of the Clinton administration.

“It’s a critical victory for the government because it allows the government to seek the full range of remedies that are available under RICO,” said Bill Corr, executive director of the Campaign for Tobacco-free Kids.

Government lawyers are pursuing the civil case under the Racketeer Influenced and Corrupt Organizations Act, known as RICO.

The 1970 law was created to prosecute mobsters.