A federal judge has dismissed a challenge to the 1998 Master Settlement Agreement (MSA), which was filed by General Tobacco in October.

US District Judge Jennifer Coffman on Tuesday dismissed the case, saying General Tobacco waived its right to challenge the agreement on Constitutional issues when it entered into the agreement.
General Tobacco, the sixth-largest tobacco company in the US, sued attorneys general and tobacco makers, arguing that the MSA, which was agreed between the federal states and 19 tobacco companies in 1998, kept the tobacco market from being competitive and is more expensive for new entrants to the industry. The agreement requires tobacco manufacturers who signed on to make annual payments to the states, partly to pay for billions of dollars in health care costs related to treating tobacco-related diseases under state Medicaid programs.
North Carolina-based General Tobacco sought more than USD 1 billion (EUR 741 million) in damages. It also asked the court to stop states from penalizing the company for not making payments while the lawsuit was pending in US District Court in Louisville. (pi)