Special to the Sun
The Massachusetts Attorney General’s Office (AGO) has reached a $600 million settlement with major tobacco manufacturers, marking the largest AGO resolution in recent history. In addition to the $600 million that will be paid to the Commonwealth’s general fund this fiscal year, the companies will make additional payments totaling tens of millions of dollars each year going forward.
“The country’s major tobacco manufacturers have pushed smoking products to young people for decades – and this settlement is evidence of our ongoing commitment to hold these companies accountable for their actions that caused irreparable harm to public health and safety,” said Attorney General Andrea Joy Campbell. “I am grateful to my team whose dedicated efforts over the course of many years secured these funds.”
“Big Tobacco used harmful and misleading marketing practices for decades and undermined public health. I was proud to work on this case as Attorney General and congratulate Attorney General Campbell and her team for holding manufacturers accountable and delivering this historic result for the people of Massachusetts,” said Governor Maura Healey.
“I would like to commend Attorney General Andrea Campbell and her team for their commitment to holding tobacco manufacturers accountable for harmful marketing practices. Our youth should not be misled into thinking smoking is anything but addictive and detrimental to their health. I’m grateful to represent a state that places immense value on public health and the wellbeing of our residents,” said Senate President Karen E. Spilka.
The deal, made on behalf of the Commonwealth, arose out of a 1998 Master Settlement Agreement (MSA). The MSA was a groundbreaking settlement with major tobacco companies in which they agreed to stop marketing their products to children, cease other harmful marketing practices, and pay states billions of dollars each year to offset medical expenses caused by smoking. Since the inception of the MSA, Massachusetts has received annual payments from the major tobacco companies totaling hundreds of millions of dollars for past and ongoing medical costs related to smoking.
The MSA has proven to be an effective public health agreement leading to a decrease in smoking, particularly among young people. Between 1998 and 2019, cigarette consumption in the U.S. dropped by more than 50 percent. During that same time period, regular smoking among high schoolers dropped from 36.4 percent in 1997 to six percent in 2019. On a yearly basis, however, certain manufacturers that are parties to the MSA have withheld substantial funds due to a contractual adjustment, placing hundreds of millions of dollars in dispute and forcing such disputes into arbitration.
The AGO has now successfully resolved seven of these past annual disputes and has reached an agreement that should increase the speed at which additional disputes are resolved. In addition to the $600 million payment, the agreement also mandates that the companies withhold less money in future years based on a contractual adjustment in the MSA. Accordingly, Massachusetts will receive greater and more consistent annual payments going forward. While the AGO is at odds with the major tobacco companies on nearly every ground, such resolution is not possible without the cooperation of all parties and counsel.
Enforcing the MSA, including reaching this settlement, is a part of the AGO’s ongoing efforts to improve public health. The Attorney General’s Office continues to prioritize addressing youth nicotine use, including the use of e-cigarettes, particularly as new products are brought to market that incite nicotine addiction. According to the Truth Initiative, more than two million middle and high school students used e-cigarettes in 2023. In April 2023, the AGO announced a $462 million multistate settlement, $41 million of which went to Massachusetts, against JUUL for their role in the nationwide youth vaping epidemic. The AGO vows to continue taking a leading stance on battling youth smoking both inside and outside the Commonwealth. Further, the AGO will continue its constant efforts to enforce the MSA and the Commonwealth’s tobacco laws.
This matter was handled by Senior Tobacco Enforcement Counsel Nicholas A. Ogden of the AGO’s Trial Division.