The American tobacco industry has agreed to pay a record $15bn to the state of Texas to settle lawsuits brought by its government.

The sum is by far the biggest of three out-of-court settlements the industry has reached with American states demanding compensation for the cost of treating smoking-related illnesses.

Deals were reached last year with Florida and Mississipi

Deals were reached last year with Florida and Mississippi in June. Some of the biggest tobacco companies agreed to pay about $370bn to 40 American states over a 25-year period in return for the dropping of court claims against them.

The deal requires the approval of the Congress and the White House. Both have criticised it.

Texas sued eight tobacco companies and three trade groups in 1996 for reimbursement of about $8.6bn spent on Texans' smoking-related illnesses dating back to 1968.

With damages, the lawsuit grew to more than $15bn.

The state contended the companies broke state and federal laws that prohibit deceptive trade and fraud, manipulated nicotine levels to cause addiction and aimed advertising at children.

President Clinton has called for stricter anti-smoking legislation after revelations that a major American company targeted teenagers to increase its sales.

Another 37 states have lawsuits pending, with Minnesota's trial due to begin on Tuesday.

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