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.