U.S. GOVERNMENT RECOVERS CASH FROM CIGARETTE MAKERS
By Adnews Staff
Cigarette makers in the U.S. have agreed to pay the government $319 billion to settle state lawsuits that were launched to recoup some of the Medicaid money spent to treat smoking-related illnesses. British Columbia is watching the case closely. It launched a lawsuit last week to recover billions of dollars to protect future generations against the hazards of smoking and the $400 million it spends annually to treat patients with smoking-related illnesses. B.C. is hoping other provinces will join the Canadian suit. So far, neither Ontario or the Federal government have plans to do so. In the U.S. deal, eight attorney-generals reached the proposed arrangement with the tobacco companies. Thirty-nine states are suing the tobacco industry and seven others are eligible to join the suit. Under the agreement, tobacco companies are banned from advertising on billboards, city buses and T-shirts. It also bans the use of cartoon characters such as Joe Camel in any tobacco advertising. States that agree to the settlement will receive $18.6 billion over the next five years. The remainder of the payments will be spread out until 2025.