Tobacco seeks legal shield
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May 7, 1997: 1:31 p.m. ET
Industry proposes curbing future liability; attorneys general say no
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NEW YORK (CNNfn) - The tobacco industry has submitted a proposal that seeks to drastically limit what cigarette makers would ever have to pay in future liability lawsuits.
The plan came in the midst of heated discussions between industry officials and state attorneys general aimed at reaching an industry-wide settlement. Talks resumed Monday in Dallas.
Under the new plan, tobacco companies are hoping to cap individual claims at $250,000 with no chance of punitive damages, Connecticut Attorney General Richard Blumenthal told CNNfn.
Moreover, the industry now wants individuals to prove in court that they were misled by statements made by cigarette makers that were knowingly false.
"Taken as a package, this would be the functional equivalent of blanket immunity," Blumenthal said. Connecticut's attorney general is the one designated by the plaintiffs' group to address the immunity issue.
Previously, the attorneys general that are suing the industry in hopes of recouping public health costs related to smoking have opposed any suggestion of immunity for the tobacco companies. Blumenthal said they are expected to reject the latest offer as early as today.
Tobacco companies have proposed establishing a $300 billion settlement fund as well as restricting cigarette marketing and advertisement campaigns.
As of Monday, Blumenthal said the chances of actually reaching acceptable terms on a settlement with the industry remains below 50-50.
Blumenthal told Reuters that the attorneys general are united in opposing any plan that would give the companies total protection from suits. He added, however, that he and his colleagues are looking for a way that would give the companies some certainty about what kinds of costs they might be facing.
"I can conceive of ways to do it," he said. "You can be creative if you work with financing tools."
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