Altria Master Settlement Agreement

02 Dez Altria Master Settlement Agreement

The guardianship law is based on the statutory finding that, given the MSA`s finding that state rights are settled against large cigarette manufacturers, [i] would be contrary to state policy if tobacco manufacturers who do not opt for such a comparison could benefit from a resulting cost advantage to make significant and short-term profits in the years preceding liability without ensuring that the State has a possible source of recovery from them. proven that they acted in a faulty manner. It is therefore in the interest of the state to require these producers to create a reserve fund to provide a source of compensation and to prevent these producers from making significant short-term profits and then becoming secure before liability can arise. [25] [26] Over a 25-year period, states receive up to $246 billion from tobacco companies through the MSA and four other public facilities that can be used to support tobacco control efforts. Future annual payments based on inflation and cigarette sales will continue over the long term. The MSA provides industrial funds specifically for educational programs against smoking and youth smoking, as well as a national health research foundation. As part of the $246 billion MSA, the participating tobacco companies agreed: PM USA maintains the national tobacco colonization contracts we have signed with the Attorney General. We are committed to cooperating with the states. This fact sheet answers several frequently asked questions about the largest civil dispute resolution in U.S. history, the Manufactured Tobacco Processing Agreement (MSA). Under the “qualifying law,” non-signatory tobacco companies (also known as “non-participating producers” or “NPMs”) must pay a portion of their income into a trust account.

  The money in the receiver account serves as a reserve of responsibility.   If the NPMs are successfully sued for damage to cigarettes, the money in the trust accounts will pay the damages.   The payment of each NPM is based on market share and is approximately the cost per cigarette, such as the amount that OPMs must pay to comply with the MSA. Payments can only be used to pay a judgment or transaction on a claim against NPM, up to the amount that the NPM would otherwise pay under the MSA. All remaining funds in the trust account return to the NPM after 25 years. Compliance with marketing rules and restrictions, as well as all other aspects of the MSA and the four other individual national comparisons, is enforced by a court in each state and by the Attorney General of each state. Failure to comply with these rules and restrictions may result in large-scale court-ordered injunctions and civil penalties. More information can be found in the full text of the settlement agreement. The Attorney General did not have the authority to grant all this himself: the Global Settlement Agreement would require an act of Congress. Senator John McCain of Arizona brought the law that was much more aggressive than global regulation.

[10]422, 427 In the spring of 1998, however, Congress rejected both the proposed transaction and an alternative proposal from McCain.