Connecticut and 21 other states on Wednesday announced a multi-million dollar deal with tobacco companies over a 2006 dispute regarding the firms’ payments under the 1998 tobacco settlement.
Under the 1998 settlement, the 22 states receive annual payments from tobacco manufacturers. Connecticut has received $1.8 billion since 2000.
The settlement to the 2006 dispute resolves claims for sales years from 2003 to 2014.
Terms of that settlement include an additional $63 million in payments for Connecticut on top of its annual amount; the state’s expected payment from 2015 and 2016 dropping by $2 million annually, and increasing $8 million per year thereafter; enhanced enforcement responsibilities for Connecticut; and the end of the risk of Connecticut losing up to $260 million in the future payments if it did not prevail in the case against the tobacco companies.
“After careful consideration, I have determined that this settlement is in the best interests of our state,” Attorney General Jepsen said in a press release. “It provides direct financial benefits, in a much shorter term, than we could have achieved by litigation, even if we were fully successful. It also avoids burdensome future litigation regarding sales years from 2004 through 2012.”
