Chapter 33 The FDA, tobacco regulation and state lawsuits

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The FDA, tobacco regulation and state lawsuits: State Lawsuits

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The tobacco industry settled its lawsuit with Texas for an agreement to pay the state

$15.3 billion over 25 years, including $264 million to fund state research and

anti-smoking initiatives.

Advocacy Institute news item, January 20, 1998

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The Texas settlement with the tobacco industry for $15.3 billion came with a lawyer

contingency fee of 15%, or $2.3 billion. Calling the proposed fees outrageous,

Governor George Bush has gone to federal court to block the payment to the 150

lawyers who assisted Texas in the lawsuit.

San Francisco Chronicle, February 9, 1998, p. A2

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In the final renegotiated settlement of the Texas tobacco suit, the industry will pay the

state a total of $17.6 billion over the next 25 years.

Wall Street Journal, July 20, 1998, p. B8

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A Minnesota state lawsuit is suing tobacco companies to recover billions of dollars

that taxpayers have paid in smoking-related health care costs, alleging an antitrust

conspiracy and consumer fraud by the tobacco industry. "For four decades, the

tobacco cartel has engaged in a malicious conspiracy of fraud and deception

designed to peddle an addictive, killer product to the American public", said Attorney

General Hubert Humphrey III.

American Medical News, September 5, 1994, p. 14

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Monday, July 24, 2000

Page 14 of 15

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