Local News

News > Local News > State Settles Dispute With Tobacco Companies Over '98 Lawsuit Settlement

State Settles Dispute With Tobacco Companies Over '98 Lawsuit Settlement

Indiana has reached a deal to end a legal battle with the big tobacco companies over how much money the state is entitled to receive from a 1998 lawsuit settlement.

Indiana has received an average of $137 million a year from the tobacco industry as compensation for the health costs of smoking. But an arbitrator ruled in October the state hadn't done enough to enforce a provision aimed at preventing smaller tobacco companies from seizing the opportunity to undercut the big companies' prices.

Attorney General Greg Zoeller had sued to reverse the ruling, but an out-of-court settlement will reduce Indiana's 2014 payout by $38 million -- $25 million less than the arbitrator's original ruling. The deal also short-circuits potential litigation over future payouts by reworking the payment formula for the next three years.

Zoeller's office estimates the state will receive an average of 130-million dollars a year over the next three years.

Local News

The latest news from a Megabus crash on I-65 north of Seymour puts more than 60 passengers on board the bus...
The nativity scene on the lawn of the Franklin County Courthouse will remain there until Christmas Day. The...
A 17-year-old already in custody on a charge of murder has been formally charged in a second murder in September...
(file photo courtesy RTV6) The law firm representing the State Fair stage collapse victims has announced a $50...
Some Indianapolis organizations are reaching out to at-risk youth. Public Safety Director Troy Riggs says the city...