Court Denies N.Y. State a Separate Arbitration Over Huge Tobacco Settlement

Posted on Saturday 17 May 2008

New York state is not entitled to a separate arbitration to determine whether it must contribute to a $1.1 billion adjustment the tobacco industry has won for payments it must make under a nationwide tobacco settlement, an appeals court has ruled, reversing a Manhattan judge. At issue is a determination that could affect some, and possibly all, of the approximately $800 million a year New York gets from the settlement. The payments compensate states for the costs of treating smoking-related ailments.

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