Remember back in the late 1990's when Clinton was doing the same thing as Obama now. The tobacco taxes created by the "lawsuits" gave billions of dollars to the States and School Districts, now 10-12 years later, the money has run out and they need to do it again. This time the Obama administration will call it something else.
Tobacco companies not only survived that, but are now stronger, same will happen now. Short term the stock price of most tobacco companies will go down, as Obama is going to "punish the tobacco companies in the name of health care and children", then, make a deal and, once he has the money he wants, analysts will come out and say the tobacco industry is cheap and then over time the stock prices will double and triple. Nothing new.