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U.S., tobacco firms talking settlement

WASHINGTON, March 22 (UPI) -- U.S. tobacco company lawyers are talking with Justice Department prosecutors about settling a civil fraud and racketeering case dating back six years.

Begun in 1999, the case against cigarette makers was recently weakened when a federal appeals court prohibited the government from forcing defendants to disgorge $280 billion in profits allegedly earned from smokers who took up the habit before age 21, the Wall Street Journal reported Tuesday.

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The two sides have met at least once, since the Feb. 5 appeals court ruling, and are expected to meet again.

The government's civil fraud and racketeering case against the cigarette makers initially sought reimbursement of Medicaid spending for tobacco-related ailments, but a judge threw out that claim. That left the government with the civil fraud and racketeering claims.

The federal suit is separate from a $206 billion settlement struck in 1998 between the tobacco industry and 46 states.

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