Debate and Issues Index

draft settlement

Glantz: 36 Cents On The Dollar

The $200 billion dollar payout by the tobacco industry claimed by proponents of the AG settlement is very misleading, since (in contrast to the Minnesota settlement), the payments are "backloaded" rather than "frontloaded." Smoking-induced Medicaid costs are $12.4 billion a year and the deal yeilds only $4.5 billion for the first few years, or about 36 cents on the dollar.

The AG's have abandoned all efforts to recover past damages.

No wonder tobacco stocks are climbing.