The Settlement of the State Lawsuits

in Smoke-Filled Rooms

Published by University of Chicago Press

Published in print June 2002 | ISBN: 9780226857473
Published online March 2013 | e-ISBN: 9780226857480 | DOI:
The Settlement of the State Lawsuits

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The settlement of the suits brought by the state attorneys general against the cigarette industry for $206 billion in 1998 resolved the impasse over the Proposed Resolution. The settlement led to an enormous payoff to the states. The unprecedented size and scope of the settlement alone make it of considerable interest. The settlement also raises other intriguing issues regarding the structure of the payments and their disposition. The lawsuits filed by the state attorneys general have economic underpinnings. The fundamental concern is with the financial cost smoking imposes on the states. The chief economic cost is that cigarettes have an adverse effect on individual health, boosting health-care costs and the associated financial burden on the states. The settlement of the state suits established a new reference point and potential anchor for runaway juries.

Keywords: lawsuits; economic cost; healthcare; settlement; states

Chapter.  10941 words.  Illustrated.

Subjects: Company and Commercial Law

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