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Post date: August 17 1999

New York Tobacco Settlement Now Final

Attorney General Spitzer announced today that the settlement of New York's share of tobacco monies is now final.

Three local governments- New York City, and Erie and Westchester Counties- have decided not to appeal an earlier court decision which ruled that the formula for dividing money from the nationwide tobacco settlement between the state and its local governments was fair. Yesterday marked the final day the local governments could have appealed the ruling.

"We're very pleased that this case is now over," said Spitzer. "For decades taxpayers across the state were forced to foot the bill for the lies of Big Tobacco. Now, with the settlement of this case, we're another step closer to returning this money to our taxpayers."

New York will receive approximately $25 billion over 25 years. Under New York's agreement, the State will receive 51% of the money, New York City 26%, with the rest being split among the state's counties. (see attached sheet)

The State and local governments have spent billions to pay for the costs of treating smoking-related illnesses.

The nationwide $206 billion settlement is among 46 states and the tobacco industry. In order for the money to be released, final approval of the agreement must be obtained by 80% of the settling states which are due to receive 80% of the total award.

With New York's case now complete, over 80% of the states representing about 67% of the total award have reached that threshold. California is the largest state yet to come to an internal agreement.