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OCR Page 1 of 17Congress of the United States
TOBACCO-
LIGGETT
Washington, DC 20515
July 22, 1997
The President
The White House
1600 Pennsylvania Avenue
Washington, D.C. 20500
Dear President Clinton:
JUL 25 PM5:31
We are writing to request that you give special consideration to the case of the Liggett
Group as you continue to review the tobacco settlement negotiated by the major tobacco companies
and the state attorneys general.
As you know, Liggett has previously negotiated separate settlement agreements with
twenty-five state attorneys general. Nearly two years ago, Liggett recognized that the cigarette
industry needed to chart a new course. Liggett agreed to break with the rest of the tobacco industry
by waiving its attorney-client privileges and work-product protections in order to disclose all
tobacco company documents pertinent to smoking and health. Liggett admitted that nicotine is
addictive, that tobacco companies have targeted children with advertising, and that the FDA should
have unrestricted authority to regulate the nicotine content of cigarettes. These actions played an
important role in changing public opinion and helped bring the other tobacco companies to the
negotiating table.
The other tobacco companies have not made equivalent concessions. Indeed, only less than
a week after agreeing to the global settlement, press reports indicate that the major companies
challenged Liggett Director Bennett LeBow's public statements that smoking is addictive and
causes cancer when they deposed Mr. LeBow in preparation for the Broin case, the secondhand
smoke class action suit currently on trail in Miami.
We are concerned that the tobacco settlement does not appropriately recognize Liggett's
actions. The settlement appears to ignore Liggett's previous agreements with the states. Moreover,
Liggett asserts that the global tobacco settlement will bankrupt the company. We believe that
Congress should preempt neither the rights of individuals to sue the tobacco industry nor the rights
of an individual company like Liggett to reach a binding settlement of the litigation filed against it.
Liggett has acted as an industry whistleblower and has made a significant contribution to
better tobacco policy. It would be ironic -- and unfair -- if the final resolution of the tobacco issue
forced Liggett into bankruptcy while giving the rest of the industry higher stock prices and secure
profits.
Sincerely,
16,000.00 Rep. Henry A. Waxman
Rep. James V. Hansen
Pate Datal
Rep. Martin Meehan
Rep. Peter Deutsch
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