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Michigan receives $312M payment from tobacco industry settlement

FDA-Tobacco Flavors
Posted at 3:51 PM, Apr 30, 2021
and last updated 2021-04-30 22:30:14-04

LANSING, Mich. — Michigan Attorney General Dana Nessel announced on Friday that the state is receiving more than $132 million as part of an ongoing 1998 settlement with major tobacco companies.

Nessel sent a letter to leaders of the Michigan Legislature and Gov. Gretchen Whitmer announcing the payment, which is provided annually through the tobacco Master Settlement Agreement (MSA), according to a news release.

Back in 1995, Michigan and several other states filed lawsuits against major domestic tobacco companies for allegedly misleading the public about the dangers of tobacco.

Three years later, the companies entered into the MSA with 46 states, the District of Columbia, the Commonwealth of Puerto Rico and four territories.

In exchange, the states dropped their claims and the tobacco companies agreed to make annual settlement payments in perpetuity, fund a national foundation devoted to public education about the dangers of tobacco use and adhere to certain restrictions of their advertising, marketing and other practices.

“Since the MSA’s signing, cigarette sales have decreased more than 20% nationally and there’s greater understanding of tobacco’s harmful effects,” Nessel said. “This ongoing settlement not only means a significant amount of money for Michigan each year, it also serves as ongoing accountability for the tobacco industry and betterment of our country’s health.”

Michigan has received more than $6.2 billion since the MSA was adopted.