A decade-long dispute between tobacco companies in the Master Settlement Agreement (MSA) and New York state has been settled for USD 550 million (EUR 485 million), the state Attorney General’s office announced.

Under terms of the settlement, 90 per cent of the previously withheld funds will be released and future payments made according to a set formula, with no disputed holdings, the AG’s office said.
Altria, the parent company of Philip Morris USA, said the settlement would release USD 718 million plus accumulated earnings in disputed funds to New York. The agreement is the 22nd reached with states, the District of Columbia and Puerto Rico over non-participating manufacturer (NPM) adjustments to be settled under MSA, Altria said. “Like the other settlements we reached with the other states, we believe this agreement makes sense,” said Denise Keane, Altria executive vice president and general counsel.
MSA since 1998 has required participating tobacco companies to make regular payments to offset public health costs incurred by states from patients with smoking related diseases.