BAT close to settling lawsuits
Wednesday 18 June 1997
A BAT spokesman in London said he was not aware of any development in settlement talks while a representative of BAT's US tobacco arm Brown & Williamson refused to comment on the negotiations. Roy Burry of US broker Oppenheimer said that any agreement would touch on virtually every aspect of the industry from how cigarettes are advertised and marketed to the level of nicotine used and the price of each pack. Wayne Gerry, tobacco analyst at Kleinwort Benson said that the timing of settlement was uncertain: "We are all sitting here waiting. When it is announced the full ramifications will take most people a week or so to digest. Hell, just look at the logistics".
Though there are many issues still unresolved, those close to the talks say that several matters have already been settled. Cigarette makers could be asked to pay $10bn in cash upfront, with around 70 per cent going to individual states to pay for medical costs to treat sick smokers. The cigarette companies are then expected to make payments of $10bn-$15bn a year in perpetuity. On top the US tobacco industry might have to pay $1.5bn for a campaign aimed at dissuading smoking. In addition, individual lawsuits are expected to be permitted with the total awards to successful plaintiffs capped at perhaps $4bn a year. Analysts point out that in 40 years of lawsuits, the industry has not paid a cent for a health-related claims.
Other issues which may have been settled include an agreement to ban smoking in public buildings except for bars, restaurants, casinos and prisons and there would be bans on tobacco advertising on billboards and on sponsorship of sporting events and a ban on cartoon characters such as Joe Camel.
- 1 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
George Clooney and Amal Alamuddin wedding: The famous congratulate actor and human rights lawyer after Venice nuptials
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...
£300 - £330 per day: Ashdown Group: SQL Developer (Stored Procedures) Watford...