The City of Baltimore told a Maryland state court that the 1998 Master Settlement Agreement does not shield tobacco companies from liability in its lawsuit over environmental harm caused by nonbiodegradable cigarette filters. The city is seeking to proceed with claims against R.J. Reynolds Tobacco Company, Philip Morris USA, and Liggett Group LLC, arguing that the decades-old settlement addressed healthcare costs related to smoking, not municipal expenses tied to cigarette butt litter and environmental cleanup. Baltimore contends that its suit targets a separate issue involving plastic filter waste and the burden placed on city services, and therefore should not be dismissed on preemption grounds.
Tag: master settlement
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PM to Pay Washington $66M Under MSA Deal
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.