Minnesota Settlement Said to Be Close

The tobacco industry has tentatively agreed to pay Minnesota between $5 billion and $6 billion to settle the state’s lawsuit--but major stumbling blocks remained, sources said. Settlement talks between major tobacco companies, the state and its partner in the suits, Blue Cross/Blue Shield of Minnesota, have intensified in the last two weeks as the case has wound down. Barring a settlement, the case could go to the jury as early as Thursday. While major parts of the settlement remained unresolved, the basic elements include a payout of $5 billion to the state over 25 years and about $400 million to be paid to Blue Cross. The companies also would consent to two permanent injunctions, enforceable by the state attorney general, prohibiting tobacco marketing to minors and anti-competitive activity by the industry. Many of the details were revealed Monday by the St. Paul Pioneer Press. A source familiar with the negotiations confirmed the details, though some parts could still shift. Scott Williams, a spokesman for the industry, declined to comment on the state of negotiations.