Attorney General's News Release

March 5, 1999

Judge approves Nixon's $6.7 billion settlement with tobacco

Jefferson City, Mo. — Missouri's historic $6.7 billion settlement with the nation's largest tobacco companies was approved today by St. Louis Circuit Court Judge Jimmie Edwards. Attorney General Jay Nixon, who sued the tobacco companies in 1997, filed the proposed settlement on Nov. 19.

Today's approval by Judge Edwards rebuffs the Mo.re than 40 attempts at intervention that have slowed the settlement process, making Missouri the last state to clear the trial court level. Nixon said the settlement will become effective in 45 days unless one of the interveners files an appeal.

"I am pleased that the judge has denied the intervention attempts," Nixon said. "The beneficiaries of this ruling are the children of Missouri, who will no longer be barraged with advertising designed for no other purpose than to addict them to a deadly product. Our state is now in a position to benefit from the Mo.st significant reforms in the history of the tobacco industry and from the largest award ever collected in the history of Missouri."

Missouri already has Mo.re than $50 million from the settlement in escrow pending court approval and will begin receiving annual payments next year that will exceed $6.7 billion over the next 25 years.

Nixon said the Mo.st immediate effect will be the elimination of tobacco billboards throughout Missouri which will be replaced with anti-tobacco messages. In addition, the settlement requires the tobacco companies to contribute $1.5 billion to a national anti-sMo.king campaign and $250 million for a foundation dedicated to reduce teen sMo.king.

The settlement will also:

• Prohibit the industry from targeting youth in ads and marketing and ban the distribution and sale of merchandise bearing tobacco product logos or brand names.
• Prohibit all outdoor advertising, including billboards and transit advertising.
• Ban payments for placement of tobacco products in Mo.vies and television.

To ensure the industry lives up to the agreement, the settlement will be enforceable through consent decrees which Judge Edwards also approved today. In addition, the industry will provide $50 million for an enforcement fund from which Missouri could draw in order to pursue violations of the settlement.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818