Sources inform “Globes” that Minister of Finance Silvan Shalom met US attorneys several days ago to consider a possible major lawsuit on the part of the state of Israel against global cigarette manufacturers in the US. Damages could amount to $4-7 billion.
Attorneys from four major tobacco companies in the US in Washington, Florida, Louisiana, and Mississippi met Shalom through the offices of the Shahal law firm, headed by Adv. Moshe Shahal.
The claim is for Israel’s expenses incurred in respect of long-term tobacco damage. Two such lawsuits have been filed to date in Israel: Clalit Health Services is suing Dubek and US manufacturers. Preliminary proceedings in the case are taking place in the Jerusalem District Court.
Another claim was filed by private parties and health funds against Dubek. The parties are negotiating a settlement, which requires the still un-obtained approval of the Ministry of Justice. A state decision to file a lawsuit will have an impact on approval of a settlement.
As of now, the Shahal firm plans to take into consideration various questions arising from the claim, including its effect on Israel-US relations.
Published by Globes [online] - www.globes.co.il - on November 4, 2002