White House Open to Guiding Settlement

White House Deputy Counsel Bruce R. Lindsey said the Clinton administration is willing to facilitate a global settlement of the mushrooming tobacco litigation if the industry and its foes want its help. But neither side seems “ready to put their cards on the table,” Lindsey said in an interview in today’s issue of National Journal. “There may come a time when we can weigh in and help move the discussions along, but we aren’t there yet,” Lindsey said. Twenty-three states have sued tobacco companies in an effort to recover billions of dollars in Medicaid costs for treating sick smokers. The industry also faces about 20 private class-action lawsuits, more than 250 suits by individual smokers and marketing curbs imposed by the Food and Drug Administration. An out-of-court settlement would restrict future lawsuits against the industry and, therefore, would need congressional and White House approval. Lindsey acknowledged he has had “regular and frequent contact” with many of the state attorneys general and with industry representatives. He said that with the first of the state Medicaid trials set for July 7 in Mississippi, the best chance for a settlement might come in a few weeks. But industry foes are urging that the battle be allowed to run its course.