June 4, 2007
Jefferson City, Mo. — The state of Missouri received an additional $1,076,151 today from tobacco companies as part of the ongoing payments received under the 1998 Master Settlement Agreement (MSA) obtained by Attorney General Jay Nixon. The most recent payment brings the total Missouri has received under the MSA to $1,239,339,623.63. Almost $137 million was paid to the state in April.
Nixon said most of the payment received today comes from the R.J. Reynolds Tobacco and Lorillard Tobacco companies. The companies had placed the funds into a disputed payments account, but released the money for payment to the states. Other money received today includes late payments, primarily from General Tobacco Co., of Miami, and a smaller amount from the estate of a tobacco company that is being liquidated after filing for bankruptcy.
The MSA requires all the tobacco companies that sign the agreement to make annual payments to the states in perpetuity. The payments are based on each company's market share. The companies also have agreed to abide by an extensive set of restrictions on their advertising, marketing and promotion of cigarettes, especially to youth.