EIGHT US states have struck a new deal with tobacco firms that will protect
the companies against further claims for damages in exchange for cash to help
treat people made ill by smoking. The other 38 states suing the tobacco
companies have been given a week to decide whether to sign up for the deal,
which would mean the industry pays out $206 billion over 25 years.
Anti-smoking groups are urging them not to. 鈥淚t鈥檚 a lot worse than we thought,鈥�
says John Banzhaf, executive director of Action on Smoking and 午夜福利1000集合 (ASH) in
Washington DC.
The deal is a slimmed down version of an earlier $368-billion
settlement, which collapsed this year in Congress. Unlike that deal, however,
this one will not require Congressional approval. But Banzhaf claims there are
too many loopholes. For one thing, parent companies could spin off tobacco
subsidiaries into standalone corporations, which could then be declared
bankrupt. This could mean that some of the $206 billion would never be
paid out. ASH is filing lawsuits to delay the agreement for 30 days to allow for
public comment.