In 1994, then Mississippi state Attorney General, Michael Moore, filed a lawsuit on behalf of the state of Mississippi against 13 tobacco manufacturers. The lawsuit sought to recover the medical costs incurred by the state for its citizens’ smoking-related illnesses. Attorney General Moore referred to it as ”a taxpayers’ lawsuit…(taxpayers) are paying hundreds of millions of dollars a year to treat people who have tobacco related disease”.
By the end of 1996, 19 other states had joined the lawsuit against the Big Tobacco companies. However, despite the growing number of states supporting the case, the governor and attorney general of California refused to participate in the litigation. As a result, California Lieutenant Governor Gray Davis stepped in and personally reached out to Frederick Schenk, requesting his assistance in representing the Lieutenant Governor on behalf of California’s citizens.
Schenk promptly got involved and quickly worked with others to file a private attorney general lawsuit (PAGA) on behalf of Lt. Governor Davis against R.J. Reynolds and Lorillard Tobacco. Ultimately, the lawsuit settled and Lieutenant Governor Davis was elected Governor of California. The lawsuit, in which Schenk served as Davis’ personal legal advisor in the massive Big Tobacco litigation, achieved a multi-billion dollar settlement on behalf of California taxpayers. The recovery helped the State of California overcome tremendous financial obligations incurred by taxpayers to cover medical care costs resulting from tobacco related illnesses. Additionally, the lawyer’s fees were negotiated and paid by Big Tobacco, so no attorney fees were incurred by California taxpayers.