Defendants argued that the scope and breadth of the case, involving
allegations that spanned approximately 50 years, made the case nonjusticiable. The
court did not find those arguments persuasive. In particular, the government, which
was the party with the burden of proof,4 argued that for approximately 50 years, the
defendants falsely and fraudulently denied: (1) that smoking causes lung cancer and
chronic obstructive pulmonary disease (“COPD”), as well as many other types of
cancer; (2) that second hand smoke causes disease and endangers the respiratory
systems of children; (3) that nicotine is a highly addictive drug which they
manipulated in order to sustain addiction; (4) that they marketed and promoted low
tar/light cigarettes as less harmful when in fact they were not; (5) that they
intentionally marketed to young people under the age of twenty-one and denied
doing so; and (6) that they concealed evidence, destroyed documents, and abused
the attorney-client privilege to prevent the public from knowing the dangers of
smoking and to protect the industry from adverse litigation results. The court
ultimately found that the government met its burden and proved these allegations.
In preparing its case, the government was allowed to conduct discovery,
including the production of documents and deposition testimony from witnesses
within and outside the United States. The tobacco industry inundated the
government with discovery requests, and discovery took place over a four year
period. The trial in the case, following extensive pretrial motions, took place from
September 2004 through May 2005—nine months. The case was tried before the
bench rather than a jury, and the Honorable Gladys Kessler presided.
On August 17, 2006, Judge Kessler issued an opinion consisting of 1,683
pages, holding that the tobacco companies were liable for violating RICO by
fraudulently covering up the health risks associated with smoking. She found
defendants liable for a RICO conspiracy, noting that they engaged in and executed,
and continued to engage in and execute, a massive 50-year scheme to defraud the
public, including consumers of cigarettes, in violation of RICO.
The foundation of defendants’ case was denial; they had no affirmative
defenses. The government’s case was largely a case made through documentary
evidence. The tobacco industry’s own internal documents obtained through state
cases and in discovery provided the best evidence supporting the government’s
allegations of the fraudulent manner in which the industry conducted itself. Judge
Kessler summed up the case in her August 26, 2006 ruling as follows:
“The seven-year history of this extraordinarily complex case involved the
exchange of millions of documents, the entry of more than 1,000 orders, and a trial
which lasted approximately nine months with 84 witnesses testifying in open court.
Those statistics, and the mountains of paper and millions of dollars of billable lawyer
hours they reflect, should not, however, obscure what this case is really about. It is
about an industry, and in particular these Defendants, that survives, and profits, from
selling a highly addictive product which causes diseases that lead to a staggering
number of deaths per year, an immeasurable amount of human suffering and
4
As a civil action, the government had to prove its case by a preponderance of the evidence. Had a criminal case been
filed under the RICO statute, the government would have had a higher burden of proof and would have been required
to prove its case beyond reasonable doubt.
5