Judge approves Nevada’s settlement with tobacco firms

Friday, Dec. 11, 1998 | 11:40 a.m.

RENO -- District Judge Margaret Springgate Thursday approved a negotiated settlement for the tobacco industry to pay the state $1.2 billion over the next 25 years to be used for public health programs.

Springgate said the court would continue to hold jurisdiction over the case to see that both sides live up to the agreement. She also canceled a trial set for July 2000, which had been set to hear the suit filed by the state against the tobacco industry.

This is part of the $206 billion nationwide settlement in which the states agreed to drop their suits against tobacco companies. The states were suing for the money they have spent on the health problems of smokers.

Attorney General Frankie Sue Del Papa, whose office filed the suit in District Court in Reno, said, "We need to do everything we can to ensure that the money received from this settlement remains in the public health arena for which it was intended."

Gov. Bob Miller and Gov.-elect Kenny Guinn both agreed the funds should be used for public health.

"I am very pleased that we are all in complete agreement that this settlement is the best deal for Nevada," Guinn said.

Nevada will receive about $48 million a year, adjusted annually for inflation.

The tobacco companies will also finance a national, $1.5 billion anti-smoking education fund and provide $50 million for the states to use if the cigarette manufacturers do not comply.

The industry agreed to prohibit marketing that targets children and to ban all outdoor and transit advertisements. There is also a prohibition on making payments to the media to use or promote their products.

Springgate said if the tobacco companies do not follow the settlement, the attorney general's office can come into court, without filing a new suit, to force compliance.

The tobacco companies also agree to pay fees of the private lawyers hired by the states to process the suits. And the state will be reimbursed for its attorney fees and costs. Del Papa said those costs have not been calculated yet.

The attorney general's office is also in the process of preparing proposed legislation for the 1999 legislative session on several tobacco-related issues, focusing primarily on reducing access by minors to tobacco products.

A group of attorneys general negotiated the settlement and the rest of the states, including Nevada, decided to join the agreement.