April 1994 - Executives of seven largest U.S. tobacco companies swear in congressional testimony that nicotine isn't addictive and deny manipulating nicotine levels in cigarettes. Mississippi files first of 24 state lawsuits seeking to recoup millions from tobacco companies for smokers' Medicaid bills. August 1995 - President Clinton announces plans to regulate tobacco with photo ID for buyers under 27, ban on outdoor ads near schools and playgrounds and tobacco giveaways. March 1996 - Liggett Group, smallest of major tobacco companies, settles claims with five state attorneys general and promises to help them against other companies. May 1996 - Court strikes down class action status of Castano case, calling it too unwieldy to cover all states.
Lawyers begin filing class action suits in dozens of states instead.
A federal judge rules government can regulate tobacco as a drug. But industry is allowed to continue advertising. Landmark settlement provides for unprecedented restrictions on cigarettes and on tobacco makers' liability in lawsuits. Subject to congressional approval. Copyright 1997 Associated Press .