Settlement FAQs

how to get your share of the tobbaco settlement

by Bettie Gerlach MD Published 3 years ago Updated 2 years ago
image

The DSHS combines eligible expenditures from all statements received to obtain a statewide total, then divides that total into the individual statement amount submitted by each political subdivision to determine the percentage of available tobacco settlement proceeds each political subdivision will receive for that year.

Full Answer

What was the result of the tobacco settlement?

Tobacco Settlement. The settlement created a trust fund to pay for medical costs resulting from tobacco addiction and ended the suits by several states and individuals for payment of such medical costs. The settlement also prohibited class action law suits against tobacco companies in the future.

What is the tobacco settlement permanent trust account (TSPA)?

The 76th Texas Legislature created the Tobacco Settlement Permanent Trust Account as a cooperative project between the Texas Department of Health (now DSHS) and the State Comptroller of Public Accounts in order to provide local health departments and hospital districts a portion of the payments from the state's tobacco settlement.

Are You entitled to a payment from the flue-cured tobacco settlement?

If you were a shareholder or member of U.S. Tobacco Cooperative between June 1, 1946 and Sept. 13, 2017, or if you were an heir or legal representative of a shareholder or member, you may be entitled to a payment from the Flue-Cured Tobacco class action settlement.

Is flue-cured tobacco cooperative settling $24 million class action?

U.S. Tobacco Cooperative Inc., formerly known as Flue-Cured Tobacco Cooperative Stabilization Corporation, has reportedly agreed to a $24 million class action settlement involving claims made by current and former members over reserve funds.

image

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.

Who won the 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.

What was the result of the 1998 tobacco settlement?

In the largest civil litigation settlement in U.S. history, the states and territories scored a victory that resulted in the tobacco companies paying the states and territories billions of dollars in yearly installments.

How long did tobacco litigation last?

In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country.

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.

When was the tobacco lawsuit settled?

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 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.

Did tobacco companies lie?

In 2006, the US District Court for the District of Columbia ruled that tobacco companies were guilty of breaking civil racketeering laws, marketing to children and minority populations, and lying to the public about the dangers of smoking.

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.

What effect did the tobacco settlement have on tobacco sold in the US?

Revenues from domestic sales of tobacco products increased after the MSA was reached, and profits from this source increased as well. Although overall domestic consumption of cigarettes decreased,22 the cigarette price increases more than offset such declines.

What effect did the MSA settlement have on tobacco sold in the US?

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.

What did the master settlement agreement do?

It requires the tobacco industry to pay the settling states billions of dollars annually forever, forbids participating cigarette manufacturers from targeting youth, imposes restrictions on advertising and promotional activities, and bans or restricts transit advertising, outdoor advertising, product placement in media ...

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.

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.

What is the tobacco settlement?

StateAG.org’s The Tobacco Settlement commemorates the historic fight against big tobacco and the men and women who led these efforts on behalf of the states.

What was the purpose of the settlement of the tobacco addiction lawsuit?

The settlement created a trust fund to pay for medical costs resulting from tobacco addiction and ended the suits by several states and individuals for payment of such medical costs. The settlement also prohibited class action law suits against tobacco companies in the future.

Which state is the fifth to join the tobacco litigation?

Massachusetts became the fifth state to join the litigation. In December 1998, the National Association of Attorneys General awarded Tom the NAAG President's Distinguished Service Award for his work nationally on the state tobacco litigation and settlements.

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.

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.

Why do people quit smoking?

And they’ve done it without “hitting bottom” through jail, horrible accidents, killing people in fights, overdosing, extreme medical consequences, or waking up in the gutter — usually quitting just because of social pressure, relatively mild financial expenditure (at least when compared to most illegal drugs), or concerns about far future possibilities of health consequences.

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.

Can smokers sue a cigarette manufacturer?

In States that did not sign up to the Master Settlement Agreement, individual smokers (or their surviving families or estates) have successfully sued a cigarette manufacturer, sometimes as individuals and sometimes in a class action. Recent cases include Florida’s Robinson/RJR case, which resolved to a $17m award. Florida has several cases outstanding, more on that here: Tobacco giants settle smoking lawsuits for $100M. Some of these cases can be found by searching ‘tallahassee tobacco suit’ and similar.

Can smokers sue a CI?

In States that did not sign up to the Master Settlement Agreement, individual smokers (or their surviving families or estates) have successfully sued a ci

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.

image

General Information

  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement pr…
  1. Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
  2. How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pertaining to the C...
  3. How can I get a copy of the settlement agreement? A text copy of the settlement agreement is available online or may be requested via e-mail at [email protected] telephone at 512.776.2591.
  4. What was the total settlement amount, initially, for political subdivisions? The settlement agreement totaled approximately $2.3 billion. Of this amount, $450 million was deposited into a lump sum...

Use of Tobacco Settlement Proceeds

  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  1. May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
  2. What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
  3. Is there any incentive for political subdivisions to spend their tobacco settlement proceeds on health care? Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health ca...

General Information Regarding Counties

  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. T…
  1. Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
  2. More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. They will ty...
  3. May a county include expendable medical supplies such as bandages, medications, and syringes? Yes, medical supplies may be included, but administrative supplies, such as copy paper, can be counted...
  4. Are expenditures related to medical waste disposal, including the destruction of drugs and n…

County Jail, Sheriff, & Prisoner Information

  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  1. May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
  2. If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
  3. May a county include drug testing for the sheriff’s department personnel? No, the expense must be related to health care for the general public or the inmates of the county jail.
  4. Can the expense of mental competency hearings or mental health commitments in the court system be included as a possible expense? No, court costs and deputy sheriff’s time spent transporting a pris...

Hospital District & County Information

  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hos…
  1. If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
  2. If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hospital dist...
  3. What expenditures may be claimed by a political subdivision that has sold its public hospital to a private company? Note the following provision in 25 Tex. Admin. Code § 102.3(e)for the distributio...
  4. Who submits an expenditure statement when a new hospital district comes into existence in …

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9