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Photo by Sora Shimazaki: https://www.pexels.com/photo/justice-scales-and-gavel-on-wooden-surface-5668882/

BOISE - Attorney General Raúl Labrador announced today that Idaho has reached a multi-million-dollar settlement with several tobacco companies, ending a lengthy dispute over funds from the 1998 Tobacco Master Settlement Agreement (MSA). The agreement covers disputed payments from 2005 to the present and extends through 2031.

The settlement guarantees that Idaho will receive over $74 million in 2024, which includes this year's annual payment as well as a portion of the previously disputed funds from past years. This resolution avoids the potential for ongoing litigation that could jeopardize future annual payments from the tobacco companies to the state.

“By reaching this settlement, Idaho resolves all past disputes and future potential disputes for the next several years,” said Attorney General Labrador. “This settlement avoids decades of expensive litigation and eliminates risk that could threaten millions of dollars of Idaho’s annual MSA payment. I’m committed to ensuring that the tobacco companies meet their obligations to Idaho under the MSA without delay or uncertainty.”

Idaho now joins 38 other states and territories that have settled their disputes with tobacco companies under similar terms. The funds received as part of the settlement will be directed to Idaho’s Millennium Fund, which supports tobacco cessation programs, youth smoking prevention, and other health-related initiatives. To date, Idaho has received over $661 million from MSA payments.

Under the terms of the 1998 agreement, Idaho is entitled to a fixed percentage of the total annual payment made by tobacco companies to various states. Before this settlement, the tobacco companies typically disputed about $3 to $5 million of Idaho's annual payment, relegating this amount to a "disputed payment account." Accessing these funds required Idaho to engage in complex and potentially costly litigation.

The recent settlement now secures the disputed funds for Idaho without the need for protracted legal battles. Previously, Idaho was gearing up for a trial to resolve entitlements to disputed payments dating as far back as 2005-2007, which demonstrated the slow-moving nature of such litigation. By settling now, Idaho has removed the risk of losing these funds and has eliminated the significant delays associated with litigation.

This proactive settlement by Attorney General Labrador is seen as a strategic move to secure financial resources for Idaho's health initiatives while avoiding the uncertainties of future legal challenges.