Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : TOBACCO COURT * NEW LEGAL DEFENSES & PUBLIC OPINION -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (28)	12/26/1999 11:15:00 AM
From: A. Borealis	Read Replies (1) \| Respond to of 32

Ooohhhh. Pity the poor tobacco industry!! Speaking of lawsuits, put this in your pipe and smoke it: Canada Sues RJR Under RICO in New York Court [12/22-3] Excerpts from Canada launches $1 billion tobacco lawsuit By Andrea Hopkins, Reuters [12/21/99] OTTAWA - The Canadian government launched a $1-billion lawsuit against R.J. Reynolds Tobacco Holdings Inc., RJR-Macdonald Canada and several related companies Tuesday, saying they were guilty of smuggling tobacco products into Canada. The lawsuit, filed at the U.S. Federal Court in Syracuse, New York, is the latest is a string of suits stacking up against U.S. cigarette makers by U.S. state governments, the U.S. federal government and anti-smoking lobby groups. Three of Canada's top cabinet ministers -- Justice Minister Anne McLellan, Health Minister Allan Rock and Revenue Minister Martin Cauchon -- told a news conference that alleged smuggling by the U.S. tobacco giant had undermined Canadian policies designed to cut smoking by youths. ``We allege that the RJR-related companies used an elaborate network of smugglers and offshore shell companies to ensure an abundant supply of cheap cigarettes to the Canadian market,' McLellan said, adding the government has ``no intention of settling' the suit. The case involves an alleged conspiracy, beginning in 1991, by high-level RJR executives to defraud Canada in violation of both U.S. and Canadian law. The suit is being launched in the United States under a statute known as the Federal Racketeer Influenced and Corrupt Organizations (RICO) Act. McLellan said Ottawa has three goals -- to stop the defendants and their alleged co-conspirators from continuing smuggling, to compel them to surrender the profits from smuggling and to recover what she said were ``the substantial damages' Canada had suffered -- including the huge enforcement costs incurred while combating the smuggling operation. The government warned the $1 billion damage claim could rise once they had obtained access to RJR's records." The tobacco pushers seem to have no trouble maintaining their well deserved reputation. Borealis