Attorney General Charity Clark today announced that Vermont received $24,885,098.40 from tobacco manufacturers under the tobacco Master Settlement Agreement (MSA). Annually, Vermont receives monies from tobacco manufacturers from the MSA, which resolved the State’s lawsuit filed in the 1990’s. The settlement funds are credited to the State’s Tobacco Fund, and the legislature determines how they are spent.
On November 23, 1998, Vermont’s Attorney General and 51 state and territory attorneys general signed the MSA with the four largest cigarette manufacturers in the United States, including Philip Morris and R.J. Reynolds. The MSA settled lawsuits brought by the attorneys general for violating consumer protection laws and to recover health care costs associated with treating smoking-related illnesses. To date, more than 45 tobacco companies have joined the MSA. As a leader in this effort, Vermont has received more than $794 million from the tobacco companies since 1998.
“Tobacco companies caused a health crisis in this country, the effects of which we continue to feel today. In fact, we received more money through the MSA this year due to increased tobacco sales in Vermont,” said Attorney General Clark. “The MSA is the most significant example of states working together to hold businesses accountable for harms caused to our communities. As your Attorney General, I will continue pursuing enforcement action against companies that are perpetuating harms against our kids, our communities, and our environment.”
The MSA imposes significant restrictions on the participating tobacco manufacturers’ advertising and marketing practices, like marketing to children, and requires them to pay the settling states billions of dollars each year in perpetuity so long as cigarettes are sold in the United States. To date, over $165 billion has been distributed to the settling states.
More information regarding the MSA and its provisions are available here. Resources on quitting tobacco, vaping, and nicotine are available here.
CONTACT: Lauren Jandl, Chief of Staff, 802-828-3171