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Missouri Among States that Lost Tobacco Case Arbitration

JEFFERSON CITY, Mo. -- Missouri Attorney General Chris Koster says a three-judge arbitration panel has ruled in favor of more than 30 cigarette manufacturers in their claims against Missouri, Indiana, Kentucky, Maryland, New Mexico, and Pennsylvania.

JEFFERSON CITY, Mo. -- Missouri Attorney General Chris Koster says a three-judge arbitration panel has ruled in favor of more than 30 cigarette manufacturers in their claims against Missouri, Indiana, Kentucky, Maryland, New Mexico, and Pennsylvania.

Tobacco companies argued that the states failed to diligently enforce state tobacco laws in 2003, and as a result, the tobacco companies were entitled to a refund under the terms of the 1998 Master Settlement Agreement (MSA). The arbitration panel ruled in favor of the tobacco companies.

Missouri's share of the tobacco companies' 2003 MSA payment was approximately $150 million. Koster said his office was reviewing the order to determine the exact amount of the refund, which will be deducted from the companies' April, 2014 MSA payment to the state of Missouri.

Because the General Assembly elected not to pass ASR, Missouri was unable to consider the tobacco companies' settlement offer in this matter and was forced to proceed to verdict.

Koster has asked the Missouri General Assembly to pass ASR each of the last five years, warning that failure to do so would have significant financial consequences for the state.

Read Koster's 2013 letter to legislative leadership follows.

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