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Florida allows racketeering charge for tobacco companies
December 13, 1996Web posted at: 11:30 p.m. EST
WEST PALM BEACH, Florida (CNN) -- A Florida judge ruled Friday that the state can accuse the tobacco industry of violating federal racketeering laws. Palm Beach Circuit Judge Harold Cohen's ruling marks the first time that a state suing cigarette makers has been allowed to use the so-called RICO statute.
Attorneys for the state say they will base their racketeering argument on evidence the industry lied to federal officials, committed fraud and illegally marketed its product to children. They say the tobacco companies conspired to deceive the public about the dangers of cigarettes.
The addition of RICO charges could triple the $2.4 billion in damages Florida already seeks. The state filed suit to recover public medical costs of treating smoking-related illnesses since July 1994. Tobacco company Philip Morris U.S.A. said the company believes it will become clear that the state cannot support the racketeering allegations.
Related stories:
- Florida pursues tobacco firms with anti-racketeering law - December 6, 1996
- Florida files criminal charges against tobacco industry - November 5, 1996
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