News of Interest

By Billy Shields
Daily Business Review and Law.com Legal Newswire
November 7, 2008

"The Justice Department is [trying] to collect federal income tax and Medicare money from a $580 million trust fund [for] members of a disbanded Miami class action[.]

[ ... ]
"The federal government contends it should be able to recover any money spent providing health care to sick smokers who are recovering money for care they didn't pay for.

"But some lawyers for smokers say the fund isn't subject to federal taxes or Medicare liens because the fund is not part of a judgment for monetary damages caused by any illness.

[ ... ]
"[After several] tobacco companies .. agreed [in settlement] that they would have no claim on the fund no matter what happened in the class action[, a] record-setting award and class certification ended up being reversed on appeal[.]"

To read the full article, click on the Title Line, above.

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