FRANKFORT, Ky. — Attorney General Daniel Cameron has announced a more than $300 million multistate settlement with non-Tobacco Master Settlement Agreement (MSA) cigarette manufacturer S&M Brands, Inc. and equity shareholders. Kentucky will receive $2,613,351.22.
The settlement was reached between S&M Brands and nine attorneys generals, along with MSA participating cigarette manufacturers (PM’s).
Kentucky’s MSA escrow statutes, KRS 131.600 – 131.602, require non-participating manufacturers, like S&M Brands, to place funds in an escrow account each quarter based on the number of cigarettes sold in Kentucky as a safeguard against future liability for cigarette sales.
Under the settlement, S&M Brands agreed to pay 30 percent of escrow principal to the states and 30 percent to MSA PMs.