Tobacco industry settles Mississippi lawsuit

Florida also makes settlement offer

JACKSON, Mississippi (CNN) -- The tobacco industry has agreed to pay Mississippi more than $3 billion to resolve its pioneering lawsuit against cigarette makers, state Attorney General Mike Moore said Thursday in Washington.

"It's going to be a big chunk up front and then paid every year," he said. "I'm leaving Washington shortly to bring home some mighty good news."

The settlement comes only five days before Moore was to take cigarette makers to court in Pascagoula, Mississippi.

Meanwhile, the state of Florida has offered a settlement to the tobacco industry and is waiting for a response, spokesman for Attorney General Bob Butterworth said Thursday.

Florida has filed suit charging the tobacco companies with conspiracy and seeking $2.7 billion in damages to recover the state's cost of treating tobacco-related illnesses.

"Right now we are headed for trial. No settlement has been reached," said spokesman Joe Bizarro.

Moore led anti-tobacco charge

It was Moore who led national negotiations between states and the tobacco industry that ended last month with a $368.5 billion out-of-court settlement proposal involving 40 state lawsuits.

When Moore filed Mississippi's lawsuit in May 1994, seeking $940 million in compensation for state tax money spent on smoking-related illnesses, it was described as the first of its kind. And it would have been the first to go to trial.

Earlier, Moore had set a deadline of Thursday afternoon, saying a settlement had to be reached by then or the trial would begin Monday as scheduled.

He had refused to have the trial delayed until Congress and the White House have a chance to review the national agreement.

He said he figured Mississippi's share of the national settlement should be about 1 percent. Moore, who had met all week in Washington with tobacco lawyers, had said earlier that he wanted to ensure Mississippi would receive its share of the $368.5 billion bounty -- about 1 percent -- regardless of what Congress and the president do about the national agreement.

'A very important day'

The attorney general said the formal announcement in Mississippi later Thursday would provide the climax to what "is a very important day for Mississippi and the rest of the country."

"Obviously this is the first time anyone has ever collected money from the tobacco industry," Moore said. "It underscores the importance of continuing my leadership role and Mississippi's leadership role in getting a comprehensive (national) plan."

He said it was important that Congress act on the national agreement reached June 20 between attorneys general and industry negotiators because many areas of concern remained, including restrictions on advertising and regulation of the industry.

"My job is only half done," he said.

The Associated Press and Reuters contributed to this report.  

• Health Special: Smoking

Related stories:

• Mississippi trying to settle its tobacco lawsuit - July 1, 1997
• Lawyers' groups wary of tobacco deal - June 23, 1997
• Koop, Kessler have doubts about tobacco deal - June 22, 1997
• Despite tobacco deal, secondhand smoke trial goes on - June 21, 1997
• Tobacco deal zeroes in on teen smokers - June 21, 1997
• Tobacco settlement: a long way to go - June 21, 1997
• U.S. tobacco deal may boost Britain's anti-smoking resolve - June 21, 1997

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