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Tobacco, Opioids, and Global Settlements:

Considerations for Congress



December 3, 2019

A recent Sidebar provided an overview of the sprawling state and local government opioid litigation
pending in state and federal courts and highlighted a number of global settlement proposals that would
settle claims across both litigation tracks against certain defendants. Commentators have often compared
the opioid litigation and the prospect of a global settlement of the state and local government opioid cases
to the tobacco litigation in the 1990s and the resulting 1998 Master Settlement Agreement (MSA). The
1998 MSA between 46 state attorneys generals and four of the nation's largest tobacco manufacturers
remains the largest civil litigation settlement in U.S. history, requiring the tobacco manufacturers to pay
approximately $206 billion over the first 25 years of the agreement and to agree to certain practice
changes. The nature and magnitude of the MSA also prompted congressional involvement in its
negotiation and implementation. In light of the comparison commentators have drawn between the opioid
and tobacco litigation and the ongoing global settlement discussions in the opioid context, this Sidebar
provides an overview of the tobacco litigation in the 1990s and the negotiation and implementation of the
MSA, and discusses some considerations for Congress as it continues to analyze the opioid litigation and
consider ways to address the epidemic.


Tobacco Litigation and the Master Settlement

Agreement (MSA)

Starting around the mid- 1990s, state attorneys general began filing lawsuits in their respective state courts
against the major tobacco manufacturers to seek reimbursement for healthcare expenditures those states
made to treat their citizens' tobacco-related illnesses. Though the complaints' specifics varied, the suits
generally shared a common case theory. They tended to allege that the major tobacco companies misled
and deceived the public by suppressing internal research about cigarettes' risks and addictive properties
and also conspired to suppress the development of and marketing of safer cigarettes. In doing so, the
complaints asserted that the companies engaged in fraud, racketeering activities, or conduct that violated
antitrust laws.



                                                               Congressional Research Service
                                                                 https://crsreports.congress.gov
                                                                                   LSB10379

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