PRINT THIS PAGE | E-MAIL THIS PAGE

Wednesday, April 30, 1997

Morales says settlement with tobacco industry could be closer

By CHIP BROWN Associated Press Writer

AUSTIN (AP) - Texas Attorney General Dan Morales said Tuesday that the state would be more willing to settle with the tobacco industry now that attorneys general from 24 states have agreed not to grant immunity to tobacco companies for future liability.

"The issue of future immunity is no longer on the table," Morales said, one day after meeting with counterparts from across the country in Chicago to discuss tobacco litigation.

Texas is one of 24 states suing the industry, seeking to recover money spent on health care for tobacco-related illnesses. Morales said the number of states suing would likely "grow into the 30s."

There have been reports that the industry offered to settle all of the litigation by paying $300 billion and accepting restrictions on advertising, in exchange for immunity from future liability.

Morales said the tobacco industry would have to come up with "something well in excess of $300 billion for the state of Texas" to agree to a settlement.

"Three hundred billion is close, but it won't get us to a point where we would bypass going to trial," Morales said.

Lance Morgan, a spokesman for the tobacco companies involved in the settlement talks, declined to comment on Morales' statements.

Morales said he won't hold up the state's trial - scheduled to begin in September - to negotiate. The state is suing for $14 billion in health-related costs.

"If the tobacco industry wants to resolve this, they will have to do that before September, when we are planning on picking a jury in Texarkana," Morales said.

However, Morales said that companies genuinely are interested in settling the case. In the past, tobacco companies would engage in settlement talks and then deny that they were doing so, Morales said.

"I have been skeptical in the past, but I have changed my mind about that," Morales said. "I believe now that there is a very real prospect for settlement.

"I think they (tobacco companies) perceive that they have few options left, that the alternative to a settlement would be far worse to them," Morales said.

Morales said Texas would agree only to giving the tobacco industry "limited immunity for past wrongdoings" but no immunity for future acts.

Morales said reports that the coalition of attorneys general is splintering over the tobacco issue aren't true.

"We fight about everything," Morales said. "It's natural there will be some degree of disagreement because of the number and diversity of the states involved, but I'm confident that at the end of the day there will unanimity."

U.S. District Judge William Osteen of North Carolina ruled Friday that the federal Food and Drug Administration can regulate the addictive nicotine in cigarettes as a drug and limit the access of minors to cigarettes.

Morales said he hoped one day the FDA would "designate tobacco as a controlled substance or prescription drug."

"It probably won't be given serious thought by the FDA, but if that ruling holds up on appeal, the FDA would have a wide array of possibilities not there before," Morales said. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
Send the URL (Address) of This Story to A Friend: