Common Contracts
1 similar null contracts
UNADJUSTED BASE PAYMENTS TO THE STATES FROM THE TOBACCO SETTLEMENTS (Millions of Dollars)June 27th, 2011
In 1997 and 1998, Mississippi, Florida, Texas, and Minnesota negotiated their own, individual agreements to settle their lawsuits against the major cigarette companies. The rest of the states, DC, and the U.S. territories then settled with the cigarette companies through the Master Settlement Agreement (MSA) in November 1998. All the settlements called for annual payments from the settling cigarette companies to the states. As set forth in the tobacco settlement agreements, the unadjusted base-payment amounts allocated to the states through the settlements are each year subject to a downward volume adjustment (based on declines in the sales of the top-four U.S. cigarette companies: the original participating manufacturers) and to an upward inflation adjustment (equal to 3% or the actual rate of inflation for each year, whichever is highest, compounded) and, in rare situations, other adjustments, before the actual amount owed by the cigarette companies to each state is determined. For i
