The federal judge handling the federal government's tobacco industry case held closed-door settlement talks on Monday.

U.S. District Judge Gladys Kessler called the conference last week amid heightened scrutiny of the case. News reports have questioned whether the Bush administration sought lesser penalties against the industry for political reasons.

Lawyers for the two sides first met in private for about 25 minutes with Kessler, who ordered that the talks be kept secret. Then they were holed up in separate rooms for 90 more minutes as a mediator carried messages between them, according to news reports.

Citing a recent court ruling, Department of Justice lawyers dropped their claim for $280 billion in tobacco profits to $130 billion then to $10 billion. The decision was made by political appointees, including one with ties to the tobacco industry.

Get the Story:
Judge in Tobacco Case Urges Settlement (The Washington Post 6/21)
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Settlement Talks Start, Slowly, for U.S. and Cigarette Makers (The New York Times 6/21)
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Relevant Links:
Tobacco Litigation - http://www.usdoj.gov/civil/cases/tobacco2

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