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$175 Million for Sick Smokers Held Up by Tax Liability Issue

Daily Business Review

January 21, 2009

About 45,000 sick smokers have been approved for payments from a $580 million fund that sprouted from an overturned tobacco negligence verdict, but questions about federal tax liability and Medicare liens still have not been answered. About $405 million has been distributed in individual checks of $9,000, but supplemental checks have been held up while lawyers figure out what to do with the claims asserted by the federal government, said court-appointed fund administrator Miles McGrane of McGrane Nosich & Ganz in Coral Gables, Fla.

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