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Tobacco Industry Fraud & False Claims Issues

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The American Lung Association issued the following Alert to

contact US Senators to preserve the federal government's

lawsuit against the tobacco industry. Following the Alert is the

Washington Post editorial. Please urge your US Senators to

support the Hollings - Durbin Amendment to retain Section 109.

- - - - -

TO: Constituent and Affiliate Executive Directors, Government

Relations & Communications Staff

FROM: Paul Billings Asst. V.P. , Government Relations

SUBJECT: Call your Senators: Support the Hollings - Durbin

Amendment to continue the federal tobacco lawsuit

DATE: May 12, 2000

Background

Last year, the Department of Justice initiated important litigation

to recover the billions of dollars that the federal government spends

each year on smoking-related healthcare costs. This litigation will

hold the tobacco industry accountable and reimburse the taxpayers

for the tobacco-related healthcare costs. This recovery is being

sought on behalf of federal health programs including Medicare,

the Department of Veterans Affairs and the Department of Defense.

Section 109 of the FY 1995 Commerce, Justice, State Appropriations

Act allows the Justice Department to seek reimbursement from the

federal agencies it represents. The FY 2001 Senate Agriculture

Appropriations bill includes language that will protect the tobacco

companies and scuttle the litigation by repealing Section 109.

The American Lung Association strongly opposes the repeal of

Section 109. The repeal will prevent the Department of Justice from

effectively representing federal agencies on a wide variety of

litigation matters, including the tobacco lawsuit. (The complete text

of Section 109 is included below)

Action Requested

Call or Fax your senators and urge a vote in favor of the Hollings

(D-SC)-Durbin (D-IL) amendment restoring the Section 109 authority

that permits the Department of Justice to seek reimbursement for

litigation from other federal agencies. Let your Senators know that

you support the federal lawsuit to hold the tobacco companies

accountable and to reimburse the taxpayers for tobacco-related

health costs.

Senate Switchboard 202-224-3121

Talking Points

Tobacco kills over 430,000 Americans each year. The tobacco

industry sells an addictive product. For decades, Big Tobacco has

escaped responsibility for its actions by lying to the public.

American taxpayers should not have to bear the enormous

healthcare costs associated with tobacco-related diseases.

Congress should not protect the tobacco industry by preempting

this important recovery action.

Please allow the Department of Justice to continue this litigation

and seek reimbursement from the appropriate federal agencies

that it represents.

FY 1995 Commerce Justice State Appropriations Act:

Section 109: Notwithstanding 31 U.S.C or any other law, in litigation

involving unusually high costs, the Department of Justice may receive

and retain reimbursement for salaries and expenses for fiscal year

1995 and thereafter, from any other governmental component being

represented in litigation.

Deadline: The vote could occur anytime the week of May 15, 2000.

CALL TODAY

Please call Paul Billings pbillings@lungusadc.org or Cassandra

Welch cwelch@lungusadc.org at 202-785-3355 if you have any

feedback or questions.

- - - - -

A Boost for Big Tobacco

The Washington Post

Sunday, May 14, 2000; Page B06

THE SENATE Appropriations Committee has voted along party

lines for a provision that would likely kill the government's lawsuit

against the tobacco industry. Last year, when Congress refused

to fund the suit, the administration assembled the necessary money

from other Justice Department funds and by tapping the budgets

of the departments of defense, health and human services and

veterans affairs, all affected by past tobacco-related health care

costs.

The Senate appropriators, led by Chairman Ted Stevens, would

force the return of this money and take away the department's

general authority to ask other agencies to help finance suits filed

on their behalf. In recent years, this has become a frequent means

of funding major civil lawsuits. Even if one believes the tobacco

lawsuit is unfounded, attacking this authority is a particularly

destructive way to end the case.

The better approach would be to let the suit play out in court. We

think the filing of it was a reasonable exercise of the attorney

general's discretion, but the industry has recently moved to have

it dismissed. If the case is as frivolous as some believe, the

companies will prevail--and Janet Reno will be accountable for her

decision to proceed. It's hard to see why, save perhaps for politics,

the tobacco companies should have congressional assistance in

fending off government claims that the courts are perfectly competent

to evaluate.

 

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