A New York appellate panel handed tobacco companies a victory Thursday by ruling that disputes over reductions in their payments to the states under a $206 billion nationwide settlement must go to arbitration. Under the settlement, which compensates states for funds spent treating smoking-related illnesses, the states receive $6.2 billion annually from 45 participating companies. The ruling has enormous fiscal implications for the states as the reduction could amount to more than $1 billion a year.
Tobacco Companies Handed a Win; States May Face $1B Loss
New York Law Journal
April 7, 2006