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Tobacco firms shun changes
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September 18, 1997: 12:40 p.m. ET
Cigarette makers say settlement will achieve goals outlined by Clinton
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NEW YORK (CNNfn) - Cigarette makers took issue with proposed changes to the $368.5 billion tobacco litigation settlement outlined by President Clinton, saying the settlement doesn't need any alteration.
On Wednesday, Clinton said the tobacco industry should curb teen smoking by raising prices by up to $1.50 per pack over the next ten years or face penalties, among other proposals.
The tobacco industry, while saying it was "gratified" the President wanted to build on the settlement, disagreed with the plan to punish cigarette makers if teen smoking fails to decline.
"We do not agree that the industry should be held solely accountable for social behavior that neither it, nor the government, can control," said a joint statement issued by tobacco companies Philip Morris Inc., R.J. Reynolds Tobacco Co., Lorillard Tobacco Co. and United States Tobacco Co.
British firm B.A.T. Industries PLC, which owns tobacco company Brown & Williamson, said the tobacco industry had done enough already.
"Given the major concessions already made, we cannot support significant changes to that agreement," B&W said in a statement, adding that the original deal offers the best opportunity to cut underage smoking.
President Clinton wasn't the only person dissatisfied with the tobacco settlement. It was also being attacked by the lawyers of plaintiffs seeking damages for smoking-related illnesses..
State attorneys general and others involved in litigation against tobacco companies gathered at Mealey's Tobacco Litigation Report Conference in Chicago Thursday to discuss details of the proposed settlement.
Lawyers at the meeting criticized the settlement's "one size fits all" strategy.
"There are many, many seriously injured individuals who haven't been heard as part of this process," said Woody Wilner, a tobacco plaintiff lawyer. "The industry needs to come to them and work out terms with them as well."
-- From staff and wire reports
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