Pubdate: Thu, 23 Sept 1999 Source: Times, The (UK) Copyright: 1999 Times Newspapers Ltd Contact: http://www.the-times.co.uk/ Author: Damian Whitworth, in Washington TOBACCO FIRMS SUED OVER HEALTH COSTS The Clinton Administration announced last night that it was suing tobacco companies to recover billions of dollars taxpayers have spent on smoking-related healthcare. The lawsuit prepared by the Justice Department will allege that the companies violated federal laws against civil racketeering by engaging in a conspiracy to cover up the health risks of smoking. "The companies that manufacture and sell tobacco have waged an intentional and co-ordinated campaign of fraud and deceit," Janet Reno, the Attorney-General, said. "It has been designed to preserve their enormous profits whatever the cost in human lives, human suffering and medical resources." Ms Reno said that the consequences of the tobacco industry's behaviour had been staggering. "Every year 400,000 people die from smoking and as a result the federal Government pays more than $20 billion in taxpayers' money just to treat the diseases caused by cigarettes. Smoking is the nation's largest preventable cause of death and disease, and American taxpayers should not have to bear the responsibility for the staggering costs," she said. For more than 45 years the cigarette companies had realised that "the truth represents a mortal threat to their business. At every turn, they denied that smoking causes disease and denied that it is addictive," she added. It was now time for them to pay their fair share of the costs of caring for those with smoking-related illnesses. Cigarette-makers reached a settlement with most state governments last year in which they agreed to pay more than $240 billion (pounds 154 billion) over 25 years to cover outlays on health insurance. The tobacco industry reacted furiously to the move. "We just don't believe they have a basis for filing this lawsuit," said Tommy Payne, executive vice president of R. J. Reynolds Tobacco Co. "We are not going to settle this lawsuit. And we anticipate that when this case is judged on its merits the law is going to find that the Justice Department doesn't have a valid case." The suit names Philip Morris Inc.; Philip Morris Companies; R. J. Reynolds Tobacco Co; American Tobacco Co; Brown & Williamson Tobacco Co Inc; Liggett and Myers Inc; The Council for Tobacco Research USA Inc and the Tobacco Institute Inc. - --- MAP posted-by: Derek Rea