TobaccoReporter logo

Tag: MSA

  • PM to Pay Washington $66M Under MSA Deal

    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.

  • Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    A Washington state judge ordered R.J. Reynolds Tobacco Co. to arbitrate rival Philip Morris USA Inc.’s claims that it breached a 2017 deal delineating billions of dollars in annual payments. Ruling from the bench on September 3, King County Superior Court Judge Michael Scott granted the motion to force arbitration, contending Philip Morris’ breach-of-contract claim against R.J. Reynolds and the other tobacco producers “clearly arises” out of the 2017 agreement and therefore must be arbitrated.

    The conflict centers on longstanding disagreements over the annual Master Settlement Agreement (MSA) payments to the state. RJR and fellow plaintiffs claim PM USA aims to derail a separate 2025 settlement signed between RJR and Washington by attempting to enforce an arbitration clause dating back to the 2017 agreement. They argue PM USA is improperly interfering in a deal it is not directly part of.

    In June, PM USA submitted its motion to compel arbitration, asserting that RJR and the other defendants are bound by the 2017 arbitration clause and that the court must defer to this private resolution mechanism.