Philip Morris USA (PM USA) today made its annual Master Settlement Agreement (MSA) payment of approximately $3.5 billion. This amount includes approximately $206 million that PM USA disputes it owes as a result of the 2009 non-participating manufacturer (NPM) adjustment.
As permitted by the terms of the MSA, PM USA paid the disputed amount into a disputed payments account pending final resolution of the 2009 NPM adjustment dispute. That money will be available, with earnings, to the prevailing parties in the 2009 NPM adjustment dispute.
“We continue working towards a resolution of the Non-Participating Manufacturer Adjustment dispute for 2009 and prior years and look forward to doing so, either by settlement or through the arbitration process laid out in the Master Settlement Agreement,” said Denise Keane, Altria Group, Inc. executive vice president and general counsel, speaking on behalf of PM USA.
PM USA has paid more than $59 billion to the states under the tobacco settlement agreements entered into with the states in 1997 and 1998. PM USA believes states should use a portion of the MSA payments to fund youth smoking prevention and cessation initiatives at the levels recommended by the Centers for Disease Control.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts