|
| S P E C I A L | Tobacco Under Attack |
With tobacco deal undone, states in limbo
September 18, 1997
Web posted at: 11:28 a.m. EDT (1528 GMT)(CNN) -- The latest twist in the evolving federal tobacco deal leaves 38 states in limbo. They stood to collect billions of dollars under a proposed national agreement with the tobacco industry. But President Clinton's announcement that he won't endorse the agreement, or offer his own specific replacement, means potentially lengthy renegotiation.
For the states, it means they won't get their money any time soon.
But John Coales, an attorney who helped the states make the original deal, believes the states will benefit in the long-run as they seek reimbursement for smoking-related expenses. The delay improves the chances of a national settlement. "This is good for them," he told CNN.
160K/10 sec. AIFF or WAV sound
Georgetown University Law Professor Lawrence Gostin isn't so certain. If the tobacco industry, Congress and the president can't reach agreement, the states "won't get what's coming to them," he said.
In that event, the states will still be able to go to court, hoping a jury will force the tobacco industry to pay them billions of dollars.
And in some cases, that's already happened without a trial. Mississippi reached an agreement with cigarette-makers, the first state to do so. Florida made a similar deal. "We've settled our case and the money is in the bank," Mississippi Attorney General Michael Moore said Thursday.
However, if all sides eventually agree on a national deal, it could supersede settlements made with individual states.
Correspondent Robert Vito contributed to this report.
Main Page | Brief History
Business Issues | Medical Issues
Related Sites | Quick Poll | Quiz
|
Sound off on our message boards You said it... |
|
© 1997 Cable News Network, Inc.
All Rights Reserved.