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S P E C I A L Tobacco under attack Texas tobacco settlement held up over attorneys' fees
May 8, 1998
Web posted at: 9:29 p.m. EDT (0129 GMT)DALLAS (CNN) -- The $15.3 billion dollar settlement between the state of Texas and the tobacco industry is being held up because of a dispute over attorneys' fees.
When the settlement was announced earlier this year, Texas Attorney General Dan Morales said the state would pay the lawyers it hired to handle the lawsuit a 15 percent share of the settlement -- $2.3 billion.
Gov. George Bush, along with seven state legislators, the state hospital districts and a candidate for attorney general, filed a motion contending those fees were excessive and asking a judge to set them aside.
U.S. District Judge David Folsom, who heard the arguments in March and took the matter "under advisement," has yet to rule.
The overall settlement has been held up until the issue is decided. Attempts to negotiate a resolution to the fee dispute have failed, and both sides are waiting for the judge to rule.
As in the Minnesota case, Texas accused the tobacco industry of racketeering, fraud, conspiracy and deceptive business practices for allegedly manipulating nicotine levels in cigarettes and targeting children in tobacco advertising.
The state sought damages for costs of treating Medicaid patients for tobacco-related illnesses.
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Related stories:
- Tobacco industry 'surrenders' to Minnesota - May 8, 1998
- Settlement talks in tobacco trial said to continue - May 7, 1998
- Settlement unlikely in Minnesota tobacco trial - May 6, 1998
- Settlement possible in Minnesota tobacco trial - May 5, 1998
Related sites:
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- Texas Judicial Web Server
- TobaccoResolution.com - industry-sponsored site concerning tobacco's legal issues
- Tobacco Resources on the Internet - Northern California Association of Law Libraries
- Major legal cases and court coverage of tobacco lawsuits around the world - HealthWatch.org
- Additional related sites - "Tobacco Under Attack" special section
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