Two more states throw support behind $206 billion tobacco settlement
Updated November 18, 1998
3:29 p.m. ET
NEW YORK (Court TV) -- Amid criticism that the $206 billion tobacco settlement is too lenient on the tobacco industry, Idaho and Ohio have announced its support of the deal.
In an agreement announced Nov. 16, Philip Morris, R.J. Reynolds Tobacco, Lorillard Tobacco, and Brown & Williamson decided to spend billions of dollars on research and programs aimed at discouraging smoking, especially among teenagers. Forty-six states who have not settled state claims against Big Tobacco would receive $12 billion up front over the next five years. The rest of the payments would be made until 2025.
With the announcement from Idaho and Ohio, a total of 16 states have now indicated that they will sign the tobacco deal. On Nov. 17, Nebraska and Wisconsin threw their support behind the settlement, and several other states have suggested their approval. By Nov. 20, attorneys general in 30 remaining states must decide whether to sign the agreement or pursue their own state suits against the tobacco industry to recover healthier costs on smoking-related illnesses. The tobacco companies have said that they need a "sufficient" number of state support to proceed with the deal, but they have not indicated a specific number.
Although the settlement requires tobacco companies to limit its product advertising and marketing, it has its detractors. Critics are troubled by the provision that shields the industry from any fines if underage smoking does not decrease. In addition, health advocates complain that the deal improperly shields the industry government suits.
Critics also complain that the settlement's advertising restrictions on the industry have several loopholes. Although the deal prohibits advertising on billboards, transit vehicles, T-shirts and other clothing, it makes an exception for signs outside retail stores where cigarettes are sold. Some health advocates also point out that the agreement does not address FDA regulation of cigarettes.
After hearing those concerns, Maryland Attorney General Joseph Curran suggested that he might not sign the agreement and would press a better settlement. Along with Maryland, Michigan and Massachusetts may challenge the deal.
Although, some attorneys general admit that the $206 billion settlement falls short of some Big Tobacco critics' expectations, they insist it is better solution than continued litigation. The settlement guarantees monetary payment, while litigation guarantees mounting legal bills, potential losing efforts on part of the states, and years of appeals.
"This gives us more money than we'd hoped to recover if we go to trial," Wisconsin Attorney General James Doyle said. "We're not going to be tied up in courts for the next five or 10 years."
The states that have agreed to the terms of the tobacco settlement include Arizona, Arkansas, California, Colorado, Iowa, Nebraska, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, Utah, Washington, and Wisconsin.
The Associated Press contributed to this report.
