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Tobacco Companies Escape Fines Despite Racketeering Ruling

HeadlineAug 18, 2006

Back in the United States, eight major tobacco companies have escaped billions of dollars in penalties despite a ruling they have violated several racketeering laws. On Thursday, a federal judge ruled the companies conspired for decades to mislead consumers about the dangers of smoking. But the judge, U.S. District Judge Gladys Kessler, said she could not apply penalties under the terms of an appeals court ruling that overturned billions of dollars in damages last year. Judge Kessler ordered the companies to stop using terms such as “low tar”, “light” and “mild” in the marketing of their products. The Justice Department had been seeking $280 billion dollars in damages.

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