New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
March 15, 2013
10:25 EDTLOLorillard expects to receive at least $198M in credits from MSA claims
Lorillard Tobacco Company, a wholly-owned subsidiary of Lorillard, along with other participating manufacturers agreed in December 2012 to settle with 17 states and the District of Columbia and Puerto Rico disputes under the 1998 Master Settlement Agreement, or MSA, involving payment adjustments relating to nonparticipating manufacturers. The settlement has been under consideration by the arbitration panel presiding over the pending arbitration relating to the disputes. On March 13, the arbitration panel issued a Stipulated Partial Settlement and Award, which directs the Internal Auditor under the MSA to implement the settlement provisions involved, thereby allowing the settlement to proceed. The settlement would resolve the claims for the years 2003-2012 and would put in place a new method for calculating this adjustment beginning in 2013. Under the terms of the settlement, Lorillard and other manufacturers will receive credits against their future MSA payments over the next five years, and the signatory states will be entitled to receive their allocable share of the amounts currently being held in escrow resulting from these disputes. Lorillard currently expects to receive credits over the next five years of at least $198M on its outstanding claims, with the majority of the credits occurring in April 2013 and the remainder over the following four years. This estimate is subject to change depending upon a number of factors included in the calculation of the credit. The arbitration proceeding will continue as to those states that have not settled. A number of states that have not joined the settlement have indicated that they intend to take action in state court to prevent the settlement from proceeding or to seek other relief related to the settlement. There is no assurance that such attempts will be resolved favorably to the company.
News For LO From The Last 14 Days
Check below for free stories on LO the last two weeks.
Sign up for a free trial to see the rest of the stories you've been missing.
There are no results for LO

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use