What's in it for the Tobacco Industry?
The original agreement was supported by the Tobacco Industry,
although they complained that certain provisions were too
restrictive. Here's what's in it for the Tobacco Industry:
- Clear Guidelines for Regulation of the Industry in the
Future
- Payments of legal judgments against the industry would be
capped at $5 billion per year
- Lawsuits are barred against persons other than tobacco
manufacturers such as growers and distributors
- The industry will pay $60 billion in punitive damages for past
actions
- The industry will pay $300 billion to settle the state
Medicaid suits and other 3rd party suits or large class actions
are barred in the future
- The industry can be sued by individual smokers and they can be
awarded punitive damages for future misconduct by the
industry
- There is no protection from potential criminal
prosecution
- Tobacco stock will likely rise if the deal or something
similar is passed through Congress because investors hate
uncertainty that comes from massive litigation, i.e. any deal is
better than proceeding with the lawsuits
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