Editorial: Company is blowing smoke in our faces

Wednesday, April 2, 2003 | 8:48 a.m.

Reeling from a class-action suit in Illinois that recently ended with a $10 billion judgment against it, Philip Morris USA is telling states that it is "uncertain" about making next month's tobacco settlement payment. Five years ago 46 states, including Nevada, settled a lawsuit against Philip Morris and three smaller tobacco companies. The companies were sued on the premise that their tobacco products caused millions of people to suffer health problems, which in turn cost the states billions of dollars as they provided care. Under the settlement, the companies agreed to compensate the states over the next 25 years, with the total amount expected to total $246 billion.

Nevada is using the bulk of its settlement to fund the Millennium Scholarships for high school students bound for college. Settlement money also funds the Senior Rx program, which assists senior citizens in obtaining affordable prescription drugs. Nevada Attorney General Brian Sandoval said he will work with the National Association of Attorneys General to ensure that payments are made on time. We hope their united front compels Philip Morris, which says it may have cash flow problems, to make the payments it agreed to. The settlement was fair. No excuse for missing a payment should be tolerated.