Categorized | Civil Justice Update

Tobacco companies reach settlement with states over MSA payments.

In continuing coverage, the Triangle Business Journal (12/20, Weisbecker, Subscription Publication) reports on the settlement reached between major cigarette makers and 19 states over MSA payments. The article notes that “MSA refers to the 1998 ‘master settlement’ under which the manufacturers agreed to make annual payments to the states to help offset smoking-related health care costs.” The Journal says that “over $4 billion in such payouts have been withheld over recent years in a long-running dispute over the payment formula.” Under the new settlement, “North Carolina will receive more than $108 million, Attorney General Roy Cooper said Wednesday.”

        Convenience Store News (12/20, 70K) reports that “the agreement is subject to approval by an arbitration panel.” The article says that “in return for the payments, the manufacturers will receive credits against the joining states’ portion of future MSA payments.” According to the report, Philip Morris USA indicated that “for the joining states, the settlement is net cash positive and also removes the risk of substantial reductions of MSA revenues for the years in dispute, 2003 to 2012.”

        Also providing related coverage are the Durham (NC) Herald Sun (12/20, 19K) and the Winston-Salem (NC) Journal (12/20, Craver, 55K).

        Georgia to receive $56 million. The Atlanta Business Chronicle (12/19, Subscription Publication) reported that “the state of Georgia will get $56 million next year as part if a multi-state agreement with four major tobacco companies that settles a 10-year dispute, state Attorney General Sam Olens announced.” 

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