WASHINGTON - Tobacco company lawyers met U.S. Solicitor General Elena Kagan last month to urge her not to file a Supreme Court appeal in the government's racketeering case against the industry, an official involved in the Justice Department's deliberations on the case said.

The meeting, first reported yesterday by The Associated Press, ultimately might lead to settlement talks, though the two sides haven't had any contact since then, the official said.

The discussion with Kagan, the Obama administration's top Supreme Court lawyer, led to an internal Justice Department meeting about the government's options, the official added.

The two sides have until Feb. 19 to file Supreme Court appeals. In May, a federal appeals court in Washington upheld a ruling that companies including Richmond, Va.-based Altria Group Inc.'s Philip Morris USA and Winston Salem, N.C.-based Reynolds American Inc.'s RJ Reynolds Tobacco conspired to defraud the public about the dangers of smoking. The companies have signaled in court papers that they will appeal.

The same court previously barred the government from seeking the return of $280 billion in past industry profits. Although the Supreme Court rejected the government's appeal on that issue in 2005, Kagan could renew that request.

The solicitor general often meets with litigants to hear arguments before the government adopts a position at the Supreme Court. Kagan also met lawyers for anti-tobacco activists who are involved in the case, according to a private lawyer familiar with those discussions.

The December meeting with Kagan involved Miguel Estrada, who represents Philip Morris, and Michael Carvin, who represents RJ Reynolds. One item discussed at the meeting was the possibility of a so-called walk-away agreement under which neither side would seek Supreme Court review, the Justice Department official said.

Tracy Schmaler, a Justice Department spokeswoman, said she couldn't confirm the meeting with tobacco industry lawyers.

Estrada declined to comment. Two Reynolds spokesmen didn't immediately respond to voice-mail messages and e-mails left after normal business hours. Carvin didn't immediately respond to an e-mail. Calls to Altria weren't immediately returned.

Get the latest news and more great videos at NewsdayTV Credit: Newsday

Can't find a seat on the LIRR? ... Uniondale basketball star ... Get the latest news and more great videos at NewsdayTV

Get the latest news and more great videos at NewsdayTV Credit: Newsday

Can't find a seat on the LIRR? ... Uniondale basketball star ... Get the latest news and more great videos at NewsdayTV

SUBSCRIBE

Unlimited Digital AccessOnly 25¢for 6 months

ACT NOWSALE ENDS SOON | CANCEL ANYTIME