The state of Georgia will receive about $56 million next year and more payments in the future from a major settlement states reached with tobacco companies more than a decade ago.
Georgia and 16 other states reached an agreement with the four major tobacco companies in 1998 to settle lawsuits filed to recover some of the health care costs states incur caring for persons with smoking-related illnesses.
Philip Morris, R.J. Reynolds, Brown & Williamson and Lorillard agreed to pay the states more than $200 billion over 25 years, but both groups have fought over the portions each state would receive, according to state Attorney General Sam Olens.
Olens said that since 2003, Georgia has received about $1.5 billion, which has been put into the state’s General Fund.
“This settlement is important for Georgia, particularly in this challenging budget environment,” Olens said Wednesday in announcing the dispute had been resolved. “Under the terms of the settlement, we avoid the possibility of costly litigation and the potential loss of the entire annual [1998 Master Settlement Agreement] payment.”
In addition to the annual payments to the states, the tobacco companies agreed to curtail certain advertising and marketing activities, especially those targeting youths.
Other states participating in the settlement include Alabama, Arizona, Arkansas, California, Kansas, Louisiana, Michigan, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, Tennessee, Virginia, West Virginia and Wyoming. The District of Columbia and Puerto Rico also are included in the settlement.
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