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Monday, May 24, 2004

Federal judge refuses to limit fines sought in tobacco case
Jeannie Shawl at 12:26 PM ET

US District Judge Gladys Kessler has denied a motion brought by several tobacco companies and refused to limit the $280 billion of fines sought by the government in a suit accusing tobacco companies of participating in a conspiracy to deliberately mislead the public about the risks of smoking. Kessler said that the government must show a reasonable likelihood of future violations before imposing major penalties but said that the disgorgement to past profits need not be limited to "funds that are being used or remain available to fund future (racketeering) violations." Reuters has more.



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