-Caveat Lector-

Bush budget doesn't include funds to fight tobacco

By KAREN GULLO, Associated Press

WASHINGTON (April 25, 2001 1:11 p.m. EDT http://www.nandotimes.com)
- The Bush administration has not asked Congress for money in its new
budget to fund an enormous lawsuit against big tobacco companies,
prompting concerns that the Justice Department may not be able to
continue the suit.

The administration has requested $1.8 million to pay salaries and staff
costs for the tobacco litigation team in the department's civil division,
Justice officials said. But no money has been sought to pay for legal work,
such as gathering and analyzing millions of documents that tobacco
companies have asked to see.

The litigation team has estimated that it needs more than $57 million this
year to keep working on the case, according to The Washington Post,
which cited a March 12 memo sent by tobacco litigation lawyers to Attorney
General John Ashcroft.

The litigation team said that without more money, it can't keep pursuing the
case. David Ogden, assistant attorney general and head of the
department's civil division, had made the same argument last fall.

The Justice Department suit, filed in September 1999, accused big
tobacco companies of putting profits before health by concealing data
showing that nicotine is addictive and that smoking causes disease. The
government seeks to recover hundreds of millions of dollars in medical
costs borne by federal health programs to pay for smoking-related illness.

Tobacco companies have denied the charges. Republicans and members
of Congress from tobacco states oppose the litigation and have tried to
block the Justice Department from getting money to continue the suit.

Congress redirected $11 million from other federal agencies to pay for the
litigation and can do the same this year, Susan Dryden, Justice
Department spokeswoman, said Wednesday. She would not confirm
whether the department needs another $57 million.

She said Ashcroft has not yet reviewed the memo. No decision has been
made on whether to continue the lawsuit, she added. During his
confirmation hearings Ashcroft said he would evaluate the litigation, which
he opposed when he was in the Senate. President Bush said during the
presidential campaign, "We've had enough lawsuits."

Justice Department officials said the lack of a specific request for litigation
money doesn't indicate the agency's position on the lawsuit, pointing out
that there was no money in last year's budget for the suit beyond $1.8
million for staff costs and that funding level has been continued in the new
budget request.

"This budget does not take a position on the funding of tobacco" litigation,
Paul McNulty, acting principal associate deputy attorney general, said at a
budget briefing last week.

Dryden said the decision about whether to continue the suit was a policy
matter, not a budget issue. But money is crucial to the government's ability
to process millions of pages of tobacco industry documents, some dating
back to 1954, and a huge number of government documents the industry
wants to see. A trial was to begin in January 2003.

The lawsuit names Philip Morris Inc.; Philip Morris Companies; R.J.
Reynolds Tobacco Co.; American Tobacco Co.; Brown & Williamson
Tobacco Corp.; British-American Tobacco P.L.C.; British-American
Tobacco (Investments) Ltd.; Lorillard Tobacco Co. Inc.; Liggett and Myers
Inc.; the Council for Tobacco Research U.S.A. Inc., and the Tobacco
Institute Inc.


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