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Florida smoke deal sweetened
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September 17, 1998: 12:25 p.m. ET
Tobacco companies to add $1.7B to settlement, accept more ad restrictions
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NEW YORK (CNNfn) - The tobacco industry has agreed to pay an extra $1.7 billion during the next five years as part of its landmark settlement with the state of Florida, Gov. Lawton Chiles said Thursday.
The extra money brings the total value of the settlement to $13 billion to be paid over 25 years. Florida and the tobacco companies initially struck a deal last August.
Chiles, who made the announcement with Florida Attorney General Bob Butterworth, said the tobacco companies also agreed to accept more advertising restrictions than originally required.
The tighter restrictions will prohibit tobacco companies from distributing or selling merchandise, such as T-shirts, to promote their tobacco products. Cigarette makers also made a pledge not to pay film producers for using branded tobacco products in movies.
Tobacco companies have already stopped advertising on billboards and public-transit systems.
"With today's agreement, we have pounded another nail in the tobacco industry's coffin," Chiles said.
The increased award was made possible by Florida's original agreement, which stipulated the state should benefit if the tobacco industry made bigger settlements with other states in subsequent lawsuits. Agreements made in Texas and Minnesota following Florida's deal provided room for new negotiations.
Among tobacco company stocks, Philip Morris Companies Inc. (MO) slipped 1 to 44-5/8 in late-morning trading, and RJR Nabisco Holding Corp. (RN), the parent company of R.J. Reynolds Tobacco, was trading at 25-1/16, off 15/16. 
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