It appears that the settlement is not at done deal as of this writing. The next step is for the President and the Congress to begin scrutinizing this agreement.
C. Everett Koop, the former United States Surgeon General had this to say about the President's next step:
· Of the $360 billion total, $50 billion is dedicated as punishment for past industry wrongdoing, and about half of that goes for health care for uninsured children. The rest is a health-care trust fund - uses to be determined by a presidential commission.
· The other $310 billion would be divided among reimbursements to states, providing free smoking cessation programs to all smokers, anti-smoking education and advertising and enforcement of the settlement, including financing state stings on retailers.
· Attorneys' fees will be paid separately by the tobacco companies. · The US Food and Drug Administration could regulate nicotine as a drug but could not ban it until 2009, and even then would have to ensure that a ban would not cause a significant cigarette black market. Congress also would be given a chance to object.
· The FDA also must approve as safe any new ingredients added to tobacco products. For existing ingredients, FDA would impose standards to reduce and eliminate harmful components.
· Individual smokers could not sue for punitive damages for any past misconduct by tobacco companies.
· All class-action lawsuits against the industry are banned. The 17 pending smokers' class-action lawsuits would end. Plaintiffs would receive no money, but would get free anti-smoking help.
· The lawsuits by 40 states would end. Individual smokers' lawsuits now in court would go on.