A settlement agreement is reached between the four largest tobacco companies of Philip Morris, R.J. Reynolds, Brown & Williamson, and Lorillard and 46 states. The companies agree to cease certain tobacco marketing strategies and, in perpetuity, to pay certain states for healthcare costs associated with lung cancer and other smoking-related illnesses.

The settlement comes after proof is established that tobacco companies have understood the dangers of smoking for years and yet continued to market tobacco as "safe." It is unprecedented in holding these companies accountable for ailments caused by tobacco.