FOR IMMEDIATE RELEASE
NEWS RELEASE
December 18, 2012
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
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AG STRANGE: TOBACCO SETTLEMENT A GOOD DEAL FOR ALABAMA
MONTGOMERY – Attorney General Luther Strange today announced a multi-
state agreement with the major tobacco companies that settles a 10-year dispute
regarding payments under the 1998 Master Settlement Agreement (MSA). Today’s
agreement ensures the stability of continued payments in the future.
“This settlement is important for Alabama and essential to the future of our
public health funding from the Alabama 21st Century Fund,” said Strange. “The
Legislature has utilized the state’s MSA funds by funding incentives for economic
development and supporting health care programs for children and seniors. Our office
is focused on maintaining the integrity of that fund. Under the terms of the settlement,
we avoid the significant uncertainty of costly litigation and the potential loss of one or
more entire annual MSA payments.”
In 1998, the major tobacco companies agreed to pay states more than $200 billion
over 25 years to settle lawsuits over the health care costs related to smoking. For the
past ten years, there has been a dispute between the tobacco companies and the states
over portions of the payments.
Since 2003, Alabama has received nearly $1 billion from the MSA. For each of
those years, no less than $14 million in payments would be at risk by continued
arbitration.
On December 17, 2012, the settlement was agreed upon by 17 states including
Alabama, Arizona, Arkansas, California, Georgia, Kansas, Louisiana, Michigan,
Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, Tennessee, Virginia,
West Virginia and Wyoming. The states were joined by the District of Columbia and
Puerto Rico.
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501 Washington Avenue Montgomery, AL 36104 (334) 242-7300
www.ago.state.al.us
