To sign or not to sign—Master Settlement presents big dilemma for small cigarette makers

摘要

Every cigarette maker in the United States—no matter how new—is subject to extra payments as a result of the 1998 Master Settlement Agreement (MSA). Cigarette makers can choose to sign the MSA, which was crafted by the states' attorneys general (AGs) and the "big four" tobacco companies, and make payments accordingly. Or, they can opt not to participate, and make equivalent payments to the states, required by post-MSA laws mandating escrow payments. (The escrow payments were created to cover any future claims the state may make to recoup healthcare costs.