Monday, May 05, 2014
Ind. Gov't. - Another follow-up on: "State to lose $63M in tobacco payments next year"
Updating this April 14th ILB post, which included:
This entry from Oct. 17, 2013 reported that a three-judge panel had reduced Indiana’s payment from $131 million to $68 million. Quoting ILI: "arbitrators determined that [for the year 2003] Indiana, Kentucky, Maryland, Missouri, New Mexico, and Pennsylvania failed to 'diligently enforce' the relevant 1998 Tobacco Master Settlement Agreement (MSA) provision, resulting in reductions in payments to which they would otherwise have been entitled."In the April 14th post, the ILB reported that Pennsylvania had, in trial court, recouped part of the disallowed money.
In this May 2nd release, the attorney general of Missouri announces that:
Judge Jimmie Edwards of the City of St. Louis Circuit Court has partially vacated a 2013 arbitration panel ruling that cost Missouri approximately $70 million from its annual tobacco settlement payment. Koster sent a copy of the ruling to PricewaterhouseCoopers, the independent auditor that calculates the states' tobacco payments, along with a letter demanding that Missouri's payment be revised to comply with the court's ruling.Here is the 15-page Missouri trial court order.
"As a result of today's decision, Missouri should be paid nearly $50 million that the tobacco companies sought to withhold from our State," Koster said. "This money will provide needed support for state priorities like public education. I thank our dedicated team of attorneys, who have litigated this case for years to ensure that Missouri receives its fair share of the settlement money."
Indiana's appeal, State Of Indiana ex rel, et. al. v. Philip Morris, Incorporated, et. al., is pending before the Marion County Superior Court, a hearing is scheduled for mid-July.
Posted by Marcia Oddi on May 5, 2014 10:39 AM
Posted to Indiana Government