how individuals can claim money from the master settlement agreement

by Oswald Watsica II Published 3 years ago Updated 2 years ago

According to the terms of the agreement, settlement monies are paid directly to the states (and five U.S. territories). But there is no settlement fund that will give individuals money. The settlement with the tobacco industry does not prevent individuals from filing lawsuits on their own behalf.

Full Answer

What is the Master Settlement Agreement (MSA)?

In 1998, 52 state and territory attorneys general signed the Master Settlement Agreement (MSA) with the four largest tobacco companies in the U.S. to settle dozens of state lawsuits brought to recover billions of dollars in health care costs associated with treating smoking-related illnesses.

What is the tobacco Master Settlement Agreement?

Can a settling company benefit from a state’s settlement?

If a settling state enters into an agreement with a company not participating in this settlement and the terms are more favorable to the industry, settling companies can benefit, but only within that state.

How much money do States receive from tobacco settlement payments?

However, this is less than 2 cents of every dollar or close to $26 billion total that states receive from tobacco settlement payments and tobacco taxes each and every year.

Where did the tobacco settlement money go?

This year (fiscal year 2020), the states will collect $27.2 billion from the 1998 tobacco settlement and tobacco taxes. But they will spend less than 3% – just $739.7 million – on programs to prevent kids from using tobacco and help smokers quit - less than a quarter (22.4%) of the total funding recommended by the CDC.

What are tobacco settlement payments?

Under the Master Settlement Agreement, seven tobacco companies agreed to change the way they market tobacco products and to pay the states an estimated $206 billion.

What were 3 provisions of the 1998 Master Settlement Agreement?

Tobacco advertising that targets people younger than age 18 was prohibited. Cartoons in cigarette advertising were eliminated. Outdoor, billboard and public transit advertising of cigarettes was eliminated. Cigarette brand names could no longer be used on merchandise.

Can I sue tobacco companies for COPD?

Yes, you can still sue tobacco companies in certain cases. You may be able to bring an action as an individual or, in some cases, as a representative of a class in a class action.

How much was the Master Settlement Agreement?

$365.5 billionThe settlement included a payment by the companies of $365.5 billion, agreement to possible Food and Drug Administration regulation under certain circumstances, and stronger warning labels and restrictions on advertising.

What is MSA reporting for tobacco?

MSA Multicat Mandatory Data Multicat reports are weekly reports filed electronically by tobacco, candy, drinks, and grocery distributors to report sales and inventory floor counts to brand manufacturers as part of participating in their trade programs.

When was the master settlement agreement signed?

1998In 1998, 52 state and territory attorneys general signed the Master Settlement Agreement (MSA) with the four largest tobacco companies in the U.S. to settle dozens of state lawsuits brought to recover billions of dollars in health care costs associated with treating smoking-related illnesses.

What year was tobacco settlement?

1998The tobacco Master Settlement Agreement (MSA) is an accord reached in November 1998 between the state Attorneys General of 46 states, five U.S. territories, the District of Columbia and the four largest cigarette manufacturers in the United States.

When was the Big Tobacco lawsuit?

In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.

Can I claim compensation for COPD?

If you have been diagnosed with an COPD or another respiratory-related illness, you may be able to claim compensation. A successful claim requires you to prove that your illness was caused by negligent acts or omissions by your employer.

Can you sue for nicotine addiction?

As of 2019, several nicotine addiction lawsuits seek compensation from these companies. Compensation from a lawsuit can help pay for: Hospital bills. Medications.

Should tobacco companies be held responsible for smoking related diseases?

Tobacco companies use slick and persuasive marketing to promote their product. The individual is not to be blamed for responding to these messages and becoming hopelessly addicted to tobacco. Tobacco companies, not the smoker, should be held responsible if smoking results in disease and death.

What did the master settlement agreement that cigarette companies agreed to in 1998 do?

What price did the tobacco companies have to pay for hiding the truth from consumers?

So far tobacco companies have paid more than $100 billion to state governments as part of the 25-year, $246 billion settlement. Among many state governments receiving money, Orange County, Calif., is an outlier.

Where does MSA money go?

In most States (49 of them in fact) the MSA funds go directly to the State, and are used for whatever purpose they wish. In theory the money is for treating ill smokers and funding local tobacco control - but as often as not it goes into whatever they have a current financial problem with, such as funding the State employee pensions. Indeed, the impression is that less than 2% of the MSA funds, overall, are assigned to their original purpose.

How long does it take to file a claim against a tobacco company?

You file a claim against the tobacco Co. If they don't answer or respond within 30 days, it becomes law.

Where do the tobacco protection funds go?

The payments go directly from smokers’ pockets to the State treasuries after being “laundered” through the tobacco companies that were basically forced to pay “protection money” to the Mob or face the consequences. I’m pretty sure there are no provisions for individual citizens to touch the funds in any State, though I’d be interested in knowing about it if I’m wrong.

When did Michigan sign the MSA?

Michigan signed the MSA in 1998 so I don’t see any way in which a resident can claim.

Can you settle a tobacco dispute?

You can’t. The Master Settlement Agreement was a deal between the tobacco companies and the states, settling litigation by the states.

Is Michigan a signatory to the tobacco master settlement?

It is impossible for individuals to obtain any of the funds paid by the tobacco companies. In addition, Michigan was a signatory to the MSA in 1998. As a result, it provides a huge barrier agains suit by individuals against Big Tobacco. Florida was not a signatory and as a result most cases against Big Tobacco wer...

How many tobacco companies have settled under the MSA?

Eventually, more than 45 tobacco companies settled with the Settling States under the MSA. Although Florida, Minnesota, Mississippi, and Texas are not signatories to the MSA, they have their own individual tobacco settlements, which occurred prior to the MSA.

How does MSA work?

The MSA’s purpose is to reduce smoking in the U.S., especially in youth, which is achieved through: 1 Raising the cost of cigarettes by imposing payment obligations on the tobacco companies party to the MSA. 2 Restricting tobacco advertising, marketing, and promotions, including:#N#Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.#N#Banning the use of cartoons in advertising, promotions, packaging, or labeling of tobacco products.#N#Prohibiting tobacco companies from distributing merchandise bearing the brand name of tobacco products.#N#Banning payments to promote tobacco products in media, such as movies, televisions shows, theater, music, and video games.#N#Prohibiting tobacco brand name sponsorship of events with a significant youth audience or team sports. 3 Eliminating tobacco company practices that obscure tobacco’s health risks. 4 Providing money for the Settling States that states may choose to use to fund smoking prevention programs. 5 Establishing and funding the Truth Initiative, an organization “dedicated to achieving a culture where all youth and young adults reject tobacco.”

How does the MSA affect smoking?

The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019 , U.S. cigarette consumption dropped by more than 50%. During that same time period, regular smoking by high schoolers dropped from its near peak of 36.4% in 1997 to a low 6.0% in 2019. As advocates for the public interest, state attorneys general are actively and successfully continuing to enforce the provisions of the MSA to reduce tobacco use and protect consumers.

What is the purpose of the MSA?

The MSA’s purpose is to reduce smoking in the U.S., especially in youth , which is achieved through: Raising the cost of cigarettes by imposing payment obligations on the tobacco companies party to the MSA.

What is the purpose of entering into agreements with major retail chains?

Entering into agreements with major retail chains to ensure that retailers comply with state laws setting the minimum age at which tobacco products may be purchased and limiting the quantity and content of tobacco advertising at retail locations.

Is the MSA subject to constitutional defenses?

Also, because the contractual requirements of the MSA are in some ways broader than the authority granted to the FDA and are not subject to constitutional defenses, state attorneys general continue to step in where the FDA may be unable to act.

Do tobacco companies have to pay settlements?

Under the MSA, tobacco manufacturers are obligated to make annual payments to the Settling States in perpetuity, so long as cigarettes are sold in the United States by companies that have settled with the States. The NAAG Center for Tobacco and Public Health makes certain such payments are made.

When was the Master Settlement Agreement signed?

Adoption of the "Master Settlement Agreement". In November 1998 , the Attorneys General of the remaining 46 states, as well as of the District of Columbia, Puerto Rico, and the Virgin Islands, entered into the Master Settlement Agreement with the four largest manufacturers of cigarettes in the United States.

How long does it take for a SPM to join the Master Settlement Agreement?

As an incentive to join the Master Settlement Agreement, the agreement provides that, if an SPM joined within ninety days following the Master Settlement Agreement's "Execution Date," that SPM is exempt ("exempt SPM") from making annual payments to the settling states unless the SPM increases its share of the national cigarette market beyond its 1998 market share, or beyond 125% of that SPM's 1997 market share. If the exempt SPM's market share in a given year increases beyond those relevant historic limits, the MSA requires that the exempt SPM make annual payments to the settling states, similar to those made by the OPMs, but based only upon the SPM's sales representing the exempt SPM's market share increase.

Why did the OPMs and the settling states not join the MSA?

The OPMs worried that the NPMs, both because they would not be bound by the advertising and other restrictions in the MSA and because they would not be required to make payments to the settling states, would be able to charge lower prices for their cigarettes and thus increase their market share.

What was the 1997 National Settlement Proposal?

This proposed congressional remedy (1997 National Settlement Proposal (NSP), a.k.a. the "June 20, 1997 Proposal") for the cigarette tobacco problem resembled the eventual Multistate Settlement Agreement (MSA), but with important differences. For example, although the congressional proposal would have earmarked one-third of all funds to combat teenage smoking, no such restrictions appear in the MSA. In addition, the congressional proposal would have mandated Food and Drug Administration oversight and imposed federal advertising restrictions. It also would have granted immunity from state prosecutions; eliminated punitive damages in individual tort suits; and prohibited the use of class actions, or other joinder or aggregation devices without the defendant's consent, assuring that only individual actions could be brought. The congressional proposal called for payments to the states of $368.5 billion over 25 years. By contrast, assuming that the Majors would maintain their market share, the MSA provides baseline payments of about $200 billion over 25 years. This baseline payment is subject to

How many plaintiffs have ever prevailed in the tobacco case?

Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.

What did the Majors seek?

Faced with the prospect of defending multiple actions nationwide, the Majors sought a congressional remedy, primarily in the form of a national legislative settlement. In June 1997, the National Association of Attorneys General and the Majors jointly petitioned Congress for a global resolution.

How many lawsuits were filed against tobacco companies?

By the mid-1950s, individuals in the United States began to sue the companies responsible for manufacturing and marketing cigarettes for damages related to the effects of smoking. In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country. The individuals asserted claims for negligent manufacture, negligent advertising, fraud, and violation of various state consumer protection statutes. The tobacco companies were successful against these lawsuits. Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.

Who enforces the Master Settlement Agreement?

The Attorney General’s Office and the attorneys general of other states are taking steps to enforce the terms of the Master Settlement Agreement and to encourage other tobacco companies to join in the settlement.

When did the Master Settlement Agreement come into effect?

In November 1998, the attorneys general of 51 U.S. states and territories entered into a landmark settlement as a result of this litigation. Among many other things, and subject to certain exceptions, the Master Settlement Agreement:

How many sponsorships can you have in a year?

Limits manufacturers to only one brand-name sponsorship of an event per year, and prohibits brand name sponsorship of major team sports (baseball, basketball, football, hockey, and soccer), concerts, events with a significant youth audience, and events where any of the paid participants or contestants are underage.

When was the Master Settlement Agreement reached?

ALERT: The Master Settlement Agreement involves a 1998 settlement reached between the nation's four largest tobacco companies and attorneys general from 46 states and territories. Despite recent reports on the internet, there is no provision for payments to individuals.

Why do states need to use tobacco settlement dollars?

The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause of death in this country, tobacco use. Clearly, we have a tall mountain to climb though.

What was the largest settlement in the history of tobacco?

In 1998, almost every state in the U.S. came together to approve the largest civil settlement in U.S. history, the Tobacco Master Settlement Agreement (MSA). This court settlement between 46 states and the District of Columbia and the major tobacco companies forced them to end some of their more egregious marketing practices and provided for annual payments to the states for some of the medical costs of caring for the 16 million Americans who have smoking-caused illnesses. The settlement was huge: $206 billion over the first 25 years and the payments continue indefinitely into the future.*

What is MSA settlement?

A: The MSA set up initial, annual, and “strategic contribution” payments from Participating Manufacturers to the Settling States. Each year, an independent auditor calculates the settlement payment to be made by each Participating Manufacturer and the amount to be received by each Settling State.18 If parties disagree with the auditor’s calculations, the matter is submitted to binding arbitration by three neutral arbitrators who must be former federal judges.19

What is the MSA?

] The MSA created the American Legacy Foundation (now known as the Truth Initiative), a research and educational organization that focuses its efforts on preventing teen smoking and encouraging smokers to quit. The foundation is responsible for “The Truth” advertisement campaign,30 which has had success in reducing youth smoking.31

What is the purpose of Section VII of the MSA?

A: Under Section VII of the MSA, each Settling State may bring an action to enforce the Agreement or the Consent Decree (the settlement contained in a court order) with respect to disputes or alleged breaches within its territory. The court that entered a Settling State’s Consent Decree has exclusive jurisdiction to implement and enforce the MSA with respect to that state. Section VIII(a) of the MSA places responsibility on the National Association of Attorneys General (NAAG) to coordinate and facilitate the MSA’s implementation and enforcement on behalf of the attorneys general of the Settling States . NAAG carries out this mandate through an attorney general-level Tobacco Committee and an Enforcement Working Group, which consists of attorney general office staff working on tobacco issues, and the NAAG Tobacco Project, which is comprised of staff attorneys within NAAG who support state enforcement efforts. (The NAAG Tobacco Project is now known as the NAAG Center for Tobacco and Public Health.) Enforcement typically begins when a state attorney general office or NAAG observes a potential violation of the MSA, or a member of the public or a public organization complains about a Participating Manufacturer’s marketing practices to a state attorney general or NAAG. If the matter is not resolved through negotiation, one or more Settling States may decide to bring an enforcement action against the Participating Manufacturer.

What is MSA in manufacturing?

A: The MSA is a settlement agreement between the Settling States, the Original Participating Manufacturers, and the Subsequent Participating Manufacturers.13 The number of Participating Manufacturers remains fluid as, over the years, some additional manufacturers have settled with the states and others have gone out of business. As of October 2018, there are more than 50 Participating Manufacturers who are bound by the terms of the MSA.14

Does the MSA limit how the settlement states use their funds?

A: As noted above, the MSA does not limit how the Settling States may use their funds. Some state and local governments have securitized their future MSA payments in which they issue a bond backed by future payments. In other words, “By securitizing … the state trades a potentially risky future stream of payments for a certain lump-sum payment,” often to generate short-term cash to cover budget shortfalls.58 Securing bonds has allowed state governments to finance capital improvements, fund health-care projects, and receive an upfront lump sum of cash rather than waiting each year for the MSA payments.59 By 2010, eighteen states, the District of Columbia, and three U.S. territories securitized some or all of their revenue entitlements from the MSA payment schedule into bonds.60 The issued bonds totaled $40 billion and are backed by expected future MSA payments.61

How long after MSA execution date can you make a payment?

Manufacturer may, beginning 30 days after the MSA Execution Date, make, orcause to be made, any payment or other consideration to any other person or entityto use, display, make reference to or use as a prop any Tobacco Product, TobaccoProduct package, advertisement for a Tobacco Product, or any other item bearing

What happens after the MSA execution date?

After the MSA Execution Date, the Original Participating Manufacturers and theTobacco-Related Organizations will support an application for the dissolution of anyprotective orders entered in each Settling State's lawsuit identified in Exhibit D withrespect only to those documents, indices and privilege logs that have been produced as ofthe MSA Execution Date to such Settling State and (1) as to which defendants have madeno claim, or have withdrawn any claim, of attorney-client privilege, attorney work-product protection, common interest/joint defense privilege (collectively, "privilege"),trade-secret protection, or confidential or proprietary business information; and (2) thatare not inappropriate for public disclosure because of personal privacy interests orcontractual rights of third parties that may not be abrogated by the Original ParticipatingManufacturers or the Tobacco-Related Organizations.

What is a civil claim?

(n) "Claims" means any and all manner of civil (i.e., non-criminal): claims, demands,actions, suits, causes of action, damages (whenever incurred), liabilities of any natureincluding civil penalties and punitive damages, as well as costs, expenses and attorneys'fees (except as to the Original Participating Manufacturers' obligations under sectionXVII), known or unknown, suspected or unsuspected, accrued or unaccrued, whetherlegal, equitable, or statutory.

Can a manufacturer enter into a contract with a baseball team?

Manufacturer may enter into any agreement pursuant to which payment is made (or other consideration is provided) by such Participating Manufacturer to anyfootball, basketball, baseball, soccer or hockey league (or any team involved inany such league) in exchange for use of a Brand Name.

Can a participant manufacturer provide a coupon after the MSA execution date?

after the MSA Execution Date, no Participating Manufacturer may provide orcause to be provided to any person without sufficient proof that such person is anAdult any item in exchange for the purchase of Tobacco Products, or thefurnishing of credits, proofs-of-purchase, or coupons with respect to such apurchase. For purposes of the preceding sentence only, (1) a driver's license orother government-issued identification (or legible photocopy thereof), the validityof which is certified by the person to whom the item is provided, shall by itself bedeemed to be a sufficient form of proof of age; and (2) in the case of itemsprovided (or to be redeemed) at retail establishments, a Participating Manufacturershall be entitled to rely on verification of proof of age by the retailer, where suchretailer is required to obtain verification under applicable federal, state or locallaw.

Overview

The Tobacco Master Settlement Agreement (MSA) was entered on November 23, 1998, originally between the four largest United States tobacco companies (Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs. In exchange, the compa…

History of adoption

In September 1950, an article was published in the British Medical Journal linking smoking to lung cancer and heart disease. In 1954 the British Doctors Study confirmed the suggestion, based on which the government issued advice that smoking and lung cancer rates were related. In 1964 the United States Surgeon General's Report on Smoking and Health likewise began suggesting the relatio…

Summary of terms

The Original Participating Manufacturers (OPMs) agreed to several broad categories of conditions:
• to restrict their advertising, sponsorship, lobbying, and litigation activities, particularly as those activities were seen as targeting youth;
• to disband three specific "Tobacco-Related Organizations," and to restrict their creation and participation in trade associations;

Contraband statutes

By the middle of 2000, domestic NPMs and importers had begun to obtain greater market share. The NAAG noted that reductions in settlement payments which result from an overall reduction in cigarette consumption benefit the states because health care costs imposed by each cigarette exceed the settlement payments. On the other hand, when reductions in settlement payments occur because NPM sales displace PM sales, the states receive no benefits if the NPMs do not …

Criticism

Some anti-smoking advocates, such as William Godshall, have criticized the MSA as being too lenient on the major tobacco companies. In a speech at the National Tobacco Control Conference, Godshall stated that "[w]ith unprecedented future legal protection granted by the state A.G.s in exchange for money, it appears that the tobacco industry has emerged from the state lawsuits even more powerful".

Securitization

In the ten years following the settlement, many state and local governments have opted to sell so-called Tobacco Bonds. They are a form of securitization. In many cases the bonds permit state and local governments to transfer the risk of declines in future master settlement agreement payments to bondholders. In some cases, however, the bonds are backed by secondary pledges of state or local revenues, which creates what some see as a perverse incentive to support the to…

Individual state settlements

There is technically a distinct MSA signed separately with each state. While these MSAs are identical, the states have had to enact enabling legislation which differs from state to state. Furthermore, each state's court system is entitled to create its own jurisdictional interpretations of the MSA text. As a result, legal understanding of the MSA differ from state to state.
Documents relating to the initial lawsuits filed by each individual state are available at the UCSF