Law Commons^™

Avoiding Surprises In Landmark Settlements: Lessons From The Master Settlement Agreement, Andrew J. Haile, Matthew W. Krueger-Andes

Andrew J. Haile

Nearly fourteen years ago forty-six states and the nation’s major tobacco manufacturers entered the Master Settlement Agreement, the largest civil settlement in United States history. This Article examines a current controversy under the MSA and why, as a result of that controversy, states may be required to return up to $7 billion in MSA payments to tobacco manufacturers. The Article focuses specifically on how New York’s seemingly unrelated policy decision not to collect excise taxes on cigarettes sold on Indian reservations may end up costing the state billions of dollars in MSA payments. After explaining the current controversy and New …