Appeals Court Rejects Disgorgement as Remedy in Government Suit against Tobacco Companies.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- A federal appeals court in Washington D.C. today ruled that the civil Racketeer Influenced Corrupt Organizations Act (RICO RICO n. . ) does not permit the government to seek disgorgement Disgorgement A repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. of past revenues and profits as a remedy in its case against Philip Morris USA Philip Morris USA is the United States tobacco division of Altria Group, Inc. General information On January 27, 2003, Philip Morris Companies Inc. changed its name to Altria Group, Inc. Even under this new name, Altria continues to own 100% of Philip Morris USA. , the other major tobacco companies and other defendants. "The specific civil RICO provision that the government has invoked does not allow for an award of disgorgement," said William S. Ohlemeyer, Altria Group, vice president and associate general counsel. Altria and its tobacco company subsidiary, Philip Morris USA, are among the defendants. Ohlemeyer also noted that for the government to obtain any other remedy under the civil RICO statute, it must not only prove that the companies have engaged in fraudulent behavior in the past, but that they are likely to do so in the future. |
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