WASHINGTON, Oct. 17 (UPI) -- The U.S. Supreme Court Monday refused to help the government pursue a $280 billion penalty against the major tobacco companies.
The justices rejected the government's case without comment, handing the tobacco companies a major legal victory.
In a suit started by the Clinton administration, the Justice Department wanted the tobacco companies to pay the huge sum for alleged violations of the Racketeer Influenced and Corrupt Organizations Act, better known as RICO.
But a federal appeals court panel ruled 2-1 that the department cannot seek the penalties for the past actions of the companies -- such as allegedly lying about the addictiveness of their product and targeting underage smokers. The panel said the suit could only seek a remedy that would prevent such action in the future.
The department argued unsuccessfully that RICO had never been so interpreted.
That left the Bush administration seeking a mere $14 billion for stop-smoking and education programs.
The high-court rejection is a boon to Altria Group Inc., Reynolds American Inc., British American Tobacco PLC, Liggett Group Inc. and Lorillard Inc.
