Tobacco industry
to pay Fla. $11 billionHawaii case continuing
Associated PressWEST PALM BEACH, Fla. -- Florida's war against the tobacco industry ended today with the signing of an $11.3 billion settlement of a lawsuit intended to punish cigarette makers for decades of fraud and racketeering. "The tobacco industry very much wanted to settle because our trial is getting closer," said April Herrle, a spokeswoman for Gov. Lawton Chiles. "The clock has been ticking for tobacco."
Chiles said the state won in three key areas: "protecting Florida's children, making tobacco pay for the damage it has cost our taxpayers and for cigarette makers to finally tell the truth."
Florida is the second state to settle. Mississippi, the first state to take the industry to court, settled its lawsuit July 3 for nearly $3.6 billion, or 1 percent of a proposed national settlement. A trial on a lawsuit by Texas is scheduled to open Sept. 29 in federal court in Texarkana.
In Philadelphia, meanwhile, a federal judge today set an October trial date for another major tobacco lawsuit.
U.S. District Judge Clarence Newcomer certified a smokers' lawsuit as a class action and set a trial date of Oct. 14. The lawsuit represents some 2.1 million smokers who say they were addicted and are seeking medical monitoring for smoking-related diseases.
The Florida trial had been in jury selection since Aug. 1. In depositions, tobacco executives already had conceded that smoking is harmful and can cause deadly diseases. Chiles said those admissions helped spur the deal.
"The industry finally acknowledged that it has a responsibility to truly warn people that smoking kills," Chiles said outside court.
White House spokesman Barry Toiv said President Clinton had not yet seen the Florida settlement, but planned to continue an administration review of the proposed national deal.
In addition to the financial settlement, the industry agreed to pull down all of its billboards within six months and start with signs within 1,000 feet of schools. Vending machines where children have access will be removed, and advertising in sporting arenas and on mass transit will be banned.
If the national settlement is approved, its restrictions on advertising and marketing to youths would supersede the state's deal.
The state of Hawaii is still pursuing its claims against the tobacco companies. Isle case continuing
Senior Deputy Attorney General Charles Fell today said Congress will likely approve a tentative deal on the outstanding cases, including Hawaii's. "But if it doesn't, we'll continue to pursue our case," Fell said. The Hawaii suit is at least a year away from trial, he said.
Under terms of the tentative pact between 40 states and the tobacco industry, Hawaii could receive an estimated $40 million to $60 million a year perpetually from cigarette companies.
