Delaware Department of Justice announces $2 million payment to support health-related programs

Today, the Delaware Department of Justice announced that Delaware has received a $2,138,096 supplemental payment through its participation in the Master Settlement Agreement (MSA) with the tobacco industry. Today’s payment represents Delaware’s share of $540 million that was initially withheld in April 2008 by the tobacco industry from its annual payment to states who participate in the MSA. The payment has been deposited into the Delaware Health Fund.

“We welcome the receipt of these funds, particularly during this time of lower state revenue,”
stated Chief Deputy Attorney General Richard Gebelein. “This payment is now available to benefit
Delawareans by supporting health-related programs across our state.”

The $540 million initially withheld by the tobacco industry related to a dispute of its 2005
payments to the states. The funds were held in a disputed payments account, and as part of ongoing
arbitration related to its previous years’ payments, tobacco manufacturers recently agreed to release
this amount to the states.

Under the MSA, participating tobacco manufacturers make substantial payments to states that
have reached settlements with the industry. They are also bound by a wide array of restrictions on the
advertising, promotion and marketing of cigarettes, including outright bans on targeting youth and
distribution of merchandise advertising a cigarette brand. Studies show that the vast majority of
current adult smokers began smoking before the age of 18, and since the MSA took effect, youth
smoking rates nationally have dropped nationwide.

In 1999, the Delaware Health Act was signed into law. This statute established the Delaware
Health Fund, which receives payments received by the state under the MSA; created the Delaware
Health Fund Advisory Committee to make recommendations for appropriating monies received by the
Delaware Health Fund; and directed how money paid into the fund should be spent. The Delaware
Department of Justice administers the state’s participation in the MSA.

Learn more about the Delaware Health Fund and the Health Fund Advisory Committee by
visiting http://dhss.delaware.gov/dhss/healthfund/about.html.
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Department of Justice to present public education forums statewide during

The Delaware Department of Justice will sponsor several informational public
forums across Delaware next week in conjunction with 2009 National Consumer Protection Week.
Each Delaware program will focus on identity theft, charity fraud, and common consumer scams, all
crimes that have seen an increase across the First State. The presentations will take place:
Date Time Host Organization Location

Monday, March 2 12:30 p.m. Georgetown Cheer Center 546 S. Bedford Street, Georgetown
Tuesday March 3 2:00 p.m.
Ingleside Retirement Apartments
1005 N. Franklin Street, Wilmington
Wednesday, March 4 10:15 a.m. Modern Maturity Center 1121 Forrest Avenue, Dover
Thursday, March 5 2:00 p.m. Cokesbury Village 726 Loveville Road, Hockessin
Friday, March 6 10:30 a.m. Newark Senior Center 200 White Chapel Drive, Newark
Each presentation will last approximately one hour and will be led by a Deputy Attorney
General from the Department’s Consumer Protection Unit. Participant questions will be encouraged.
Each presentation is free and open to the public. Registration is not required.
“Consumer Protection Week provides an important opportunity to educate consumers about
how to guard themselves against fraud and protect their financial security,” stated Timothy Mullaney,
Director of the Delaware Department of Justice Fraud and Consumer Protection Division. “We
encourage consumers of all ages to attend these interactive programs, learn to recognize the warning
signs of common scams, and prevent themselves and their families from becoming victims.”
Delaware consumers are urged to report suspected scams or fraudulent solicitations to the
Department’s Consumer Protection Unit by calling (toll-free) 1-800-220-5424, e-mailing
consumer.protection@delaware.gov, or visiting the web at www.attorneygeneral.delaware.gov.
Learn more about National Consumer Protection Week by visiting www.consumer.gov/ncpw
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Delaware Department of Justice presents $100,000 to Alfred I. DuPont Hospital for Children to provide discounted prescription drugs to underserved Delawareans

The Delaware Department of Justice today presented a $100,000 check to the Nemours Foundation for the Alfred I. DuPont Hospital for Children to provide reduced-cost medications to underserved Delawareans. The charitable donation represents a portion of the Department’s monetary recovery from pharmacy benefits management company Express Scripts following the 2008 settlement of an investigation by the Consumer Protection Unit.

“The Delaware Department of Justice has not only acted to protect Delawareans and enforce our consumer protection laws,” stated Chief Deputy Attorney General Richard S. Gebelein in resenting the check to Lori J. Counts, Managing Director of Development for Nemours and Amy C. Rogers, Associate Administrator of the Alfred I. DuPont Hospital for Children, “I’m pleased that we are also directing the funds we have recovered to serve our state’s residents with unmet healthcare
needs.”

In May 2008, Delaware and 27 states plus the District of Columbia reached an agreement with xpress Scripts following an investigation into its alleged violations of the states’ consumer protection laws. As a result of the investigation, Express Scripts adopted reforms to its business practices, and was required to pay $9.3 million to the participating states and $200,000 to patients who incurred expenses related to certain switches between cholesterol-controlling drugs (read the May 2008
Department of Justice press release announcing the settlement on the Department’s website at http://www.attorneygeneral.delaware.gov/media/releases/2008/affordablemeds.pdf).
Today’s donation by the Delaware Department of Justice will be used by the Alfred I. DuPont Hospital for Children to promote lower drug costs for uninsured and/or underinsured Delaware residents it serves in all three counties through its out-patient programs.
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Delaware Department of Justice urges the EPA to act on Massachusetts v. EPA

Today, the Delaware Department of Justice joined 16 states, the
Corporation Counsel for the City of New York, the City Solicitor of Baltimore, and the Pennsylvania
Department of Environmental Protection in sending a letter to Lisa Jackson, the new Administrator of
the Environmental Protection Agency (EPA). The letter urges her to act in response to the 2007 U.S.
Supreme Court ruling in Massachusetts v. EPA, issued under former EPA Administrator, Stephen
Johnson.

“The EPA has determined that greenhouse gas emissions pose significant risks,” said State
Solicitor Lawrence Lewis. “We are urging the new Administration to act quickly to regulate
greenhouse gas emissions.”

Under the federal Clean Air Act, once the EPA determines that greenhouse gases are a danger
to public health or welfare, it must issue an endangerment determination and act to regulate greenhouse
gas emissions. In the Massachusetts case, the Supreme Court declared that the EPA could not refuse
to regulate greenhouse gases based on the agency’s policy preferences. In late 2007, EPA officials
sent a proposed endangerment determination to the White House as an e-mail attachment, but White
House officials did not open the document, and former EPA Administrator Stephen Johnson declined
repeated requests to make the document public.
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