Posted By: Judy Smith

By Peter KaplanFri Nov 10, 2:50 PM ET

WASHINGTON (Reuters) - Anti-smoking and health groups said
on Friday they had notified a federal judge that they would
appeal a ruling that allowed cigarette makers to avoid major
financial penalties in the government's racketeering case.
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The groups, including the Tobacco-Free Kids Action Fund,American Cancer Society, American Heart Association and
American Lung Association, filed notice on Thursday that they
intend to appeal the August 17 ruling.

The sanctions imposed by the court fell short of the
remedies recommended by the public health groups, which among
other things would have forced the industry to fund a $4.8
billion-a-year, nationwide anti-smoking program.

The ruling by U.S. District Judge Gladys Kessler found
tobacco companies engaged in a decades-long conspiracy to hide
the dangers of smoking.

Kessler imposed some remedies, including ordering the
companies to make "corrective" public statements about the
health effects and the addictive nature of smoking, and banning
them from describing cigarettes in ways that convey health
claims such as "low tar" and "light."

Kessler said a previous ruling, by a federal appeals court,
barred her from imposing stricter actions sought by the health
groups and the U.S. Justice Department.

The department, which asked the court to fund a
less-expensive quit-smoking program, notified the court last
month that it planned to appeal the ruling.

The cigarette makers are appealing the ruling as well and
last month the U.S. Court of Appeals for the District of
Columbia agreed to put Kessler's remedies on hold while the
companies' appeal is pending.

Targeted in the 1999 lawsuit were Altria Group Inc. and its
Philip Morris USA unit; Loews Corp.'s Lorillard Tobacco unit,
which has a tracking stock, Carolina Group; Vector Group Ltd.'s
Liggett Group; Reynolds American Inc.'s R.J. Reynolds Tobacco
unit and British American Tobacco Plc unit British American
Tobacco Investments Ltd.

Kessler exempted Liggett from the remedies because she
found it withdrew from the conspiracy in the mid 1990s.

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