Monday, October 17, 2005

Supreme Court refuses to hear case on big tobacco settlement for now

The Supreme Court refused to hear a case by the Bush Administration involving a case regarding big tobacco. Big tobacco is trying to reduce a $280B settlement with the federal government. This case was started in the Clinton Administration. The government fears without a ruling from the high court litigation could drag on for a few more years. Currently a federal judge has yet issue a ruling on this case. The Bush administration may appeal the decision if they are unsatisfied with the outcome. The government contends that the settlement is fair because the tobacco companies knew how harmful tobacco was long before the public knew. The government is arguing under the federal RICO statutues which basically means that an organization is created specifically to carry out illegal activity.
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