Philip Morris Cos. and RJR Nabisco Holdings Corp. are negotiating a settlement with states’ attorneys general to get blanket protection from lawsuits, according to press reports. In return, the industry would pay $300 billion over 25 years and cut back on advertising, particularly campaigns that appeal to children.
Trial lawyers and politicians could appreciate the sound of $300 billion, but the real anti-tobacco zealots, such as David Kessler, recently departed commissioner of the Food and Drug Administration, fumed that cigarette companies were throwing up a smokescreen.
Such a deal would end legal threats and promises increased net income for an already highly profitable business.
But Congress would have to act to insure that the pact would stand, since industry wouldn’t sign if there were no guarantee against future suits. Lawyers found no problem with the legislation but said all sorts of problems would crop up if an attempt were made to deal with already-existing legal claims.
