Status: Settled 1998
Amount: $206 billion over 25 years
Each individual state, represented by that state’s Attorney General, filed suit against each of the top six tobacco companies in state court. To settle the individual suits, tobacco companies Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Philip Morris Incorporated, R.J. Reynolds Tobacco Company, Commonwealth Tobacco, and Liggett & Myers entered into a joint settlement.
The individual lawsuits were filed under the different states’ consumer protection and anti-trust laws for the recovery of smoking-related health care costs covered by each state under their Medicare/Medicaid programs, and to enforce laws designed to reduce smoking by those less than 18 years of age.
The master settlement agreement released the tobacco companies from further litigation in state courts.