Phillip Morris Agrees To Pay $56 Million In Damages

Attorneys for tobacco manufacturer Philip Morris, told Oregon officials Tuesday that the company will pay $56 million in damages.

The payment is a result of a case 13 years ago in which a jury found Philip Morris had misled smokers about the safety of the company's cigarettes. 

Tony Green is a spokesman for Oregon's Attorney General.  He calls the payment a historic win for the Department of Justice.

"By law the money goes to the Crime Victim's Compensation fund. And some of that money will be needed to fund important crime victim programs.  We expect that the legislature will use the majority of that money to deal with the deficit," Green said.

Under Oregon law, 60 percent of punitive damage awards go to the Crime Victims’ Compensation Fund.

Last week, the Oregon Supreme Court rejected Philip Morris' request that the court reconsider its decision on the damages.

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