PM USA Pays $3.6 Billion to MSA States

Source from:  Tobacco Reporter 04/19/2010

Philip Morris USA yesterday made its full annual Master Settlement Agreement (MSA) payment of about $3.6 billion that will be distributed to participating states. This amount includes payment of funds that PM USA disputes it owes as a result of the 2007 Non-Participating Manufacturer (NPM) adjustment. "As in prior years, PM USA has demonstrated its commitment to working in good faith to resolve the NPM adjustment dispute by paying the disputed amount to the states, even though it had the right not to pay as provided in the MSA," said Denise Keane, Altria Group executive vice president and general counsel, speaking on behalf of PM USA. "We continue working towards a resolution of the NPM Adjustment dispute for 2007 and prior years and look forward to doing so, either by settlement or through the arbitration process laid out in the Master Settlement Agreement." Since 1997, PM USA has paid more than $51 billion to the states (MSA and Previously Settled States combined), an amount that includes payment of disputed amounts for the 2003-2007 NPM adjustments that PM USA was entitled to withhold or pay into a disputed payments account under the MSA. Enditem