Tobacco Master Settlement Agreement (1998)
Forty-six states and the tobacco industry signed a $206 billion agreement paid over 25 years. It resolved state Medicaid claims over smoking-related costs, not individual smokers' lawsuits.
States gained a predictable revenue stream, and tobacco companies absorbed the cost through price increases.
The agreement became a template for large public-health settlements and included marketing restrictions.
Like the 3M deal, it settled a public entity's costs while leaving individual injury claims to a separate process.
