Speculation about a state-based settlement rose this month when Philip Morris USA, the largest area private employer, raised cigarette prices by 6 cents a pack. The 3 percent increase was intended to help pay for legal settlements, analysts said. Now comes word that the dog days of August led to a tabling of the talks. Maybe it's not just the weather. King Solomon himself would have a hard time putting this deal together.
Finances are one point of contention.
That means Philip Morris and its allies won't be satisfied with a settlement that doesn't include most of the 50 states. There are other, nonmonetary issues to resolve, such as voluntary advertising and marketing restrictions. Much of the summerlong negotiating has involved hashing out a plan to satisfy the state legal chiefs' desire to ban billboards and brand logos on nontobacco goods such as shirts and caps, Bloomberg said. The August break can only last so long, though. The state of Washington's lawsuit against the industry is set for trial Sept. 14.