By Rich McHugh and Likhitha Butchireddygari The lawyer who took down Big Tobacco 20 years ago has another intimidating foe in his sights. In the 1990s, as Mississippi's attorney general, Mike Moore launched a lawsuit against 13 tobacco companies that eventually resulted in a $246 billion, 50-state settlement.
The Mississippi lawyers got the highest percentage award, 33 percent, after the panel determined that they had taken the greatest risk by representing the first state to sue the tobacco industry, in 1994.
By Rich McHugh and Likhitha Butchireddygari The lawyer who took down Big Tobacco 20 years ago has another intimidating foe in his sights. His opponent this time — Big Pharma. In the 1990s, as Mississippi's attorney general, Mike Moore launched a lawsuit against 13 tobacco companies that eventually resulted in a $246 billion, 50-state settlement.
In Minnesota, where the state and a health insurer settled their cases this year for $6.5 billion, tobacco companies agreed to pay the plaintiffs' lawyers $427 million, or about 7.1 percent of the recovery.
Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs.
Big Tobacco Guilty As Charged. In a landmark 2006 judgment, U.S. District Judge Gladys Kessler found the major U.S. tobacco companies had violated civil racketeering laws (RICO) and engaged in a decades-long conspiracy to deceive the American public about the health effects of smoking and their marketing to children.
The 1998 $206 billion settlement with the tobacco industry may offer lessons as government officials negotiate with the drug companies that manufacture opioids.
$246 billionIn 1998, an historic landmark legal settlement between 46 states and the major tobacco companies, – along with individual settlements with four other states – required the companies to pay more than $246 billion over time as compensation for tobacco-related health care costs.
$206 billion The largest civil litigation settlement in U.S. history occurred in 1998 between the attorneys general of 46 states, Washington, D.C., and five U.S. territories, and the nation's four largest tobacco companies.
In Fiscal Year 2020, the most recent data available, states received $5.8 billion from the MSA and spent roughly 13% of it on anti-tobacco initiatives. That $656 million is barely one-fifth the amount that the Centers for Disease Control and Prevention recommends the states spend.
Despite these changes, smokers and non-smokers can still pursue a case against tobacco companies. Lawsuits may be more limited than in the past in terms of the claims made, but there are new products and forms of nicotine available, such as e-cigarettes, that may give rise to lawsuits.
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
Around this time, more than 40 states sued the tobacco companies under state consumer protection and antitrust laws. These states argued that cigarettes contributed to health problems that triggered significant costs for public health systems.
Smoking: State-By-State RankingState/TerritoryRankTotalKentucky128.3West Virginia227.0Oklahoma325.8Missouri424.647 more rows•Mar 12, 2009
Under the MSA, tobacco manufacturers are obligated to make annual payments to the Settling States in perpetuity, so long as cigarettes are sold in the United States by companies that have settled with the States. The NAAG Center for Tobacco and Public Health makes certain such payments are made.
State and local governments collected $19 billion in revenue from tobacco taxes in 2019, which was 0.6 percent of state and local general revenue. State taxes accounted for 98 percent of tobacco tax revenue in 2019.
Moore, who’s 65, served as Mississippi’s attorney general from 1988 to 2004. In 1994, using an untested and widely derided legal strategy, he became the first state AG to sue tobacco companies for lying about nicotine addiction and hold them accountable for sick smokers’ health-care costs.
Mike Moore made cigarette companies pay for the high cost of treating smokers. Here he comes again. Seven years ago, Mike Moore stepped from the 2 a.m. darkness into the light of a small home off Lakeland Drive in Jackson, Miss., to find his nephew close to death.
Another synthetic analog to the opium poppy, fentanyl —the drug that killed Prince—is as much as 100 times stronger than morphine. The night of the overdose, Moore’s nephew had been wearing a fentanyl patch on his arm and sucking on another.
After his 16 years as AG, Moore left public service for a private-sector salary, opening a practice in the Jackson suburb of Flowood.
Officially, Moore’s name is listed only on cases filed by Mississippi, which was the first state to sue, and Ohio. But this belies his outsize role in convening the like-minded while envisioning the long-term, big-picture strategy.
An alumnus of Ole Miss, where he wore his hair long and jammed on a synthesizer in a rock band, Moore’s expertise is in glad-handing and dealmaking. “My talents are not writing briefs, they are not researching the law,” he says. “I know people. I know how to deal with people.
The lawyers who represented the first states to settle with the tobacco industry over health care costs were awarded $8.2 billion in fees yesterday, the richest legal payday in the nation's history.
In Minnesota, where the state and a health insurer settled their cases this year for $6.5 billion, tobacco companies agreed to pay the plaintiffs' lawyers $427 million, or about 7.1 percent of the recovery. Those lawyers were highly regarded by many observers and the size of Minnesota's settlement increased the recoveries by Florida, ...
John Coffee, a law professor at Columbia University, said that his concern was not so much size of the fees but the fact that some state attorneys general had hired trial lawyers who had contributed to their campaigns.
Mr. Murr's name was virtually unknown, but Dan Morales, the Texas attorney general, testified that his request was warranted because he had played a critical role in the litigation. Yesterday the panel unanimously awarded $1 million to Mr. Murr. Mr. Morales may also soon be asked more about it.
Steven Yerrid, a plaintiffs' lawyer in Tampa, who had helped represent Florida in its case said that he believed that the $3.4 billion paid to him and his colleagues was justified. He said that the costs come from the industry, rather than the state, and added that he would have received nothing if the lawsuit had failed.
The suits, filed over the last four months, assert that food makers are misleading consumers and violating federal regulations by wrongly labeling products and ingredients. While there has been a barrage of litigation against the industry in recent years, the tobacco lawyers are moving particularly aggressively.
Don Barrett is among a group of lawyers taking on food companies over what they say are mislabeled products and ingredients that mislead consumers. Credit... James Patterson for The New York Times.
Barrett fought tobacco cases for years on behalf of smokers dying of cancer — and lost because juries agreed with the tobacco companies that smoking was a personal choice.
Instead, the panel awarded $3.3 billion to be paid by the cigarette makers over 25 years. So far, Big Tobacco has paid the Texas lawyers nearly $2 billion. The cigarette companies continue to send Umphrey and the group about $120 million annually, which will end when the $3.3 billion award is met.
The litigation took a dramatic turn in April 1997 , when lawyers for the tobacco companies asked to meet with former Mississippi Attorney General Mike Moore and Myers from Tobacco-Free Kids to discuss the possibility of a global settlement that would cover all the states that sued Big Tobacco.
“The Texas case had the potential to bring the tobacco companies to their knees, ” Daynard says.
So far, the cigarette makers have paid Texas $10.2 billion and make annual payments of about $490 million to the state, according to court records. Under the settlement agreement, the payments will continue in perpetuity, surpassing $15 billion in 2023.
“Texas suddenly became so very important because it had an actual trial date and that scared the tobacco companies silly, ” says Joe Rice, a partner at a South Carolina law firm that represented 31 states, including Texas, involved in the tobacco litigation.
As a result, teen smoking plummeted. Surveys showed that nearly 36 percent of teens smoked in 1996, but only 12 percent of them do today. Myers and others point out that Texas budgeted only $10.2 million of the $490 million payment — or two percent — to be used for anti-smoking efforts in 2016.
The private lawyers representing Texas — John Eddie Williams, Walter Umphrey, Harold Nix, Wayne Reaud and John O’Quinn — had a contract that said they would pay all the state’s costs in the litigation and would be paid 15 percent of any money they won for the state.