The state of Washington said it expects to receive about $66 million from Philip Morris to settle long-running disputes tied to the 1998 Master Settlement Agreement (MSA). The payment represents the state’s decision to resolve the dispute rather than continue prolonged arbitration, freeing funds held in escrow and ending years of uncertainty. The settlement addresses a portion of the state’s claim under the MSA tied to adjustments and enforcement issues, specifically covering obligations through 2015; arbitration will continue for subsequent years.
The new agreement follows a similar $277 million settlement in April 2025 with R.J. Reynolds and other tobacco manufacturers. Together, these settlements resolve years of arbitration over provisions requiring enforcement against companies that never joined the MSA. Washington has received roughly $3.8 billion in MSA payments since 1998.
