WASHINGTON - A $206 billion national tobacco settlement won unanimous approval Friday, shifting the smoking wars out of state courtrooms and into state capitols, where lawmakers now must hash out how to spend the money.
Attorneys general for each of 46 eligible states indicated by Friday's deadline they would join the settlement, which resolves state claims for health-care spending on sick smokers. Cigarette makers said they would seal the deal Monday.
Public health groups have protested the settlement as too favorable to the tobacco industry. And the state lawyers say more needs to be done to cut smoking rates. But the deal still marks the largest civil settlement ever and dramatically reshapes the way cigarettes are sold and marketed in America.
By spring, all tobacco billboards will be down. The settlement bans cartoon characters in marketing and promotion, limits sponsorship of events and ends promotional merchandise with tobacco logos. "Joe Camel and his ilk are in intensive care and will be gone by April," said Christine Gregoire, Washington state's attorney general and the states' lead negotiator.
Cost of the settlement to the companies is likely to be passed along to smokers, in a price increase of 35 to 40 cents a pack. Economists predict that would encourage some of the nation's 48 million smokers to quit and discourage some of the estimated 3,000 young people who begin smoking each day.
The settlement covers 36 states that had lawsuits pending against the industry and 10 states that hadn't even gone to court. Four states - Mississippi, Minnesota, Florida and Texas - have already reached settlements, totaling about $36 billion, with the industry.
The four major tobacco companies - Philip Morris Inc., R.J. Reynolds Tobacco Co., Brown & Williamson Tobacco Corp. and Lorillard Tobacco Co. - said they would sign the deal Monday. The smaller Liggett Group also joined the deal Friday - the same day the company announced they would sell Liggett's three premium brands - L&M, Lark and Chesterfield - to Philip Morris for $300 million cash.
Through the settlement, Ohio would receive $9.9 billion over the next 25 years, instead of going to court to recoup hundreds of millions of dollars spent on sick smokers, Attorney General Betty Montgomery said. Only California, New York and Pennsylvania would get more, she said.
Latest update on the tobacco deal from Associated Press
