Guatemala Files Suit Against 3 Firms

Guatemala filed suit against three major tobacco companies, accusing them of violating U.S. anti-corruption laws to conceal information on the health risks of cigarettes. The suit, the first by a foreign government, was filed against Britain’s BAT Industries of London and its U.S. cigarette unit, Brown & Williamson, Miami-based Brooke Group Ltd.’s Liggett Group unit and Philip Morris Cos. Guatemalan Atty. Gen. Acisclo Valladares Molina told reporters in Washington that his government wants reimbursement for the cost of treating sick smokers, which he said amounts to $800 million. The suit alleges violations of the Racketeering Influenced and Corrupt Organizations Act, which allows for treble damages. It says the industry conspired to hide the truth about the links between smoking and illness. Philip Morris and BAT denied the charges, saying they are politically inspired.