But, at least ex post, tobacco company investors do not appear to have been harmed in a broader context. Investments in tobacco companies were relatively profitable during 1990-2002 and 1999-2002. If the return on shares of tobacco companies remains higher than in other sectors, investors can be expected to continue to provide capital to these companies. Domestic tobacco receipts increased in 1999 and remained at a higher level in 1999-2002 than before the MSA (1990-1998) (2002 dollars, Chart 2). In 2002, the decline was greater than in 1998. Domestic sales profits were small between 1990 and 1998; Immediately after reaching the MSA, these profits reached a level before 1997. In the years following the MSA, domestic tobacco revenues exceeded the trend line for 1990-98, which was forecast until 2002. Earnings after MSA were higher than the expected trend line prior to the MSA. In the mid-1990s, more than 40 states launched a lawsuit against the tobacco industry seeking relief under various consumer protection laws and agreements.

[6] The first was declared in May 1994 by Mississippi Attorney General Mike Moore. At the time the agreement came into force, THE OPMs together controlled about 97% of the domestic market for cigarettes. In addition to these “initially implemented parties” (OSPs), the Master Settlement Agreement allows other tobacco companies to join the transaction; A list of these “SSPs” is maintained by the National Association of Attorneys General. [16] Since 1998, some 41 other tobacco companies have joined the Master Settlement Agreement. These companies, designated as the following participating producers (successful producers), are bound by the restrictions in the transaction contract and must make payments to the settlement Member States, as defined in the transaction contract. Together, MPOs and PMS are designated as participating manufacturers (PMs). Any tobacco company that chooses not to participate in the transaction agreement is designated as a non-participating producer (NPM). In November 1998, the Attorneys General of the other 46 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, concluded the Master Settlement Agreement with the four largest cigarette manufacturers in the United States. (Florida, Minnesota, Texas and Mississippi had already entered into individual agreements with the tobacco industry.) The four manufacturers – Philip Morris USA, R. J. Reynolds Tobacco Company, Brown – Williamson Tobacco Corp.

and Lorillard Tobacco Company – are designated in the MSA as the original participating manufacturers (OPMs). A separate comparison, called Smokeless Tobacco MSA (STMSA), terminated the states` claims against the U.S. Smokeless Tobacco Company (USSTC). Marketing and advertising restrictions within the STMSA in parallel with the MSA, although the agreement does not require usstc to pay compensation to the states.