The Power of the First Move

In 1997, Mississippi was one of 40 states that initiated legal action against tobacco companies to recover money they spent on health care problems associated with smoking. In July of that year, Mississippi announced that it had reached a settlement with the four largest tobacco companies, guaranteeing that the state would receive $3.6 billion over 25 years and $136 million per year thereafter.

The settlement was a personal battle for Mississippi attorney general Michael Moore, who single-handedly began an effort in 1994 to recoup his state’s losses from tobacco-related illness. Over the next three years, he convinced 39 other states and Puerto Rico to join Mississippi in the suit. Their efforts led to a national-level settlement that banned billboard advertising and also forced tobacco companies to include stronger warning labels on cigarettes.

Moore parlayed his efforts into the first successful settlement with the tobacco companies, guaranteeing payment even before federal action was taken. By acting first, he ensured that Mississippi would receive adequate compensation for its losses.

Source: Adapted from Milo Geyelin, “Mississippi Becomes First State to Settle Suit against Big Tobacco Companies,” The Wall Street Journal, July 7, 1997, p. B, 8:4.