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

An Anderson man was killed early Thursday morning while getting his hair cut, police said. Anderson Police said 24...
Ramona Vanover (photo courtesy Indiana State Police) Indiana State Police arrested a woman from Haubstadt, Indiana...
The holiday season is upon us and the BBB is warning you to be on the lookout for holiday scams, particularly...
It's traditionally one of the biggest shopping days of the year. Black Friday is here and that means shoppers are...
One person has died following a single car accident Thursday morning on the city's west side. Four others are in...