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Tobacco talks drag on
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June 10, 1997: 6:21 p.m. ET
Negotiators predict a pact soon, despite several stumbling blocks
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NEW YORK (CNNfn) - Negotiators in a multi-billion dollar tobacco settlement knocked heads over some major sticking points Tuesday and decided to table the talks until next week.
The sessions in Washington, D.C. between five attorneys general and lawyers for the tobacco industry will likely continue through part of Wednesday, said Mississippi Attorney General Mike Moore, the main architect of a possible deal.
But negotiators for both sides will continue the sessions next week at an undisclosed location to work on "contentious details," Moore said. When asked whether a deal was imminent, he said, "I can't say that."
"We're going to bring this thing to a resolution very, very soon," Moore said. "We need some time to work [details] out."
Moore and four other attorneys general from Florida, Connecticut, Washington state and Arizona have been meeting with industry lawyers for two months to hammer out a landmark settlement that could exceed $300 billion. A total of 34 attorneys general have sued the industry.
The biggest stumbling block is over the degree of regulation the federal government would have over nicotine. The amount of money the industry will pay to states, individuals and anti-smoking programs is also up in the air.
The question about punitive damages in future lawsuits - and whether to allow them at all - has thrown another roadblock in the talks, insiders said.
Moore and the other states sued the industry to recover Medicaid money spent on treating smoking-related illnesses. He has said he needs to wrap up the settlement talks in time to prepare for his case, which is scheduled to go to court in July.
Florida Attorney General Robert Butterworth said he could foresee trying his case while negotiating with the industry at the same time. He takes his case to court in August.
The President and Congress would have to approve any settlement.
Moore said he is confident that any settlement they reach will get the support of the public, the states, President Clinton, and those on Capitol Hill. Health groups would also be consulted.
George Dessart, chairman of the American Cancer Society, said Monday that he was encouraged by the progress.
"The settlement talks appear to have produced substantive elements with the potential for controlling tobacco industry activities and creating an environment that protects future generations from tobacco-related disease."
But people behind the scene have expressed frustration with the pace of the talks.
A press secretary for one of the attorneys general who didn't want to be identified said, "An agreement might not happen, period."
"You think one issue's resolved, you go to lunch, come back, and somebody's aggravated about it," the press secretary said.
Last week, disagreement over whether to offer the tobacco companies protection from liability in punitive damages led to a rift in the talks. The tobacco industry said no deal would be possible without the concession, while several attorneys general said they wouldn't sign off on any deal with such a clause.
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