Judge OKs Deal Settling Texas’ Tobacco Lawsuit

A federal judge on Friday approved a $15.3-billion deal to settle Texas’ lawsuit against the tobacco industry over smoking-related health-care costs--by far the largest of the three state deals the industry has struck so far.

The settlement, to be paid over 25 years, includes an upfront payment of $725 million and another $264 million to fund state pilot programs, including research and anti-youth smoking initiatives, according to the tobacco industry.

State Atty. Gen. Dan Morales and industry attorneys met with U.S. District Judge David Folsom in Texarkana, Texas, for more than six hours Friday to seal the nearly 40-page settlement. A spokeswoman in Folsom’s office said he is not expected to sign the documents until Tuesday.

One issue still to be resolved is how much money the private lawyers who worked with the state will get.

The settlement easily tops the combined $14.4-billion deals negotiated with Florida and Mississippi last year.

White House spokesman Mike McCurry called it “another indicator that tobacco companies will be held accountable and another reason why there should be federal legislation to pursue these issues on behalf of all Americans.” He said tobacco firms are “clearly on the run and they’re on the run for good reason.”