On July 25, 2007, the Federal Government filed suit against three of the nation’s leading tobacco companies on Wednesday, demanding more than $40 billion — about €29 billion — in damages to cover the cost of treating smoking-related illnesses.
According to the civil complaint, the companies knowingly concealed the health risks of cigarettes and targeted consumers with misleading marketing for decades.
The federal government, represented by its lawyers, argued that taxpayers have borne an enormous burden through Medicare, Medicaid, and other public health programs used to treat lung cancer, heart disease, emphysema and other conditions linked to tobacco use.
“This is about accountability,” a senior Justice Department official said after filing. “For years, these companies profited while the American people paid the medical bills. We are seeking to recover those costs.”
According to court documents, the suit names three industry leaders and accuses them of misrepresenting the dangers of smoking and the addictive nature of nicotine, shifting the financial burden of treatment to federal healthcare programs and marketing campaigns aimed at young people despite internal knowledge of health risks
The $40 billion figure represents the government’s estimate of federal healthcare expenditures tied directly to tobacco-related diseases over the past several years.
Representatives for the tobacco companies declined to comment in detail, but issued a joint statement saying they “intend to vigorously defend against these allegations” and that “adults have the right to make informed choices.”
