The following year, the major cigarette manufacturers made their accounts with tobacco-producing countries to compensate tobacco producers for the losses they had to suffer as a result of higher cigarette prices resulting from previous comparisons. With the so-called «Phase II» rule, this agreement created the National Tobacco Growers` Settlement Trust Fund. Tobacco producers and quota holders in the 14 countries that grow smoked tobacco and burley for cigarettes may receive payments from the trust fund. The states are Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia. Some pre-MSA strategies, such as brand sponsorships, have been severely limited or eliminated by the agreement. advertising money formerly intended for billboards and special sponsored events, 37-44 Even with MSA restrictions, youth exposure to cigarette advertising in magazines remains a topic.42 The fact that transaction discussions prior to MSA were well known implies that the MSA was not entirely unexpected to investors. To the extent that the payment was expected by investors prior to November 1998, these expectations would be expected to be reflected in the prices of the equity offers of these companies. Indeed, on the day of the arrival of the MSA, the share price of these companies rose and then fell below the prices in effect the day before the next day`s count.10 In light of the above, the Model Trust Act requires an NPM that sells cigarettes in [1122] to a given state to do one of two things. 1) join the MSA and declare itself willing to explain itself, «become a participating producer (as defined in Section II (d) of the [MSA] and its financial obligations under [MSA], or 2) make similar annual payments on a public trust account of the «reserve of liability,» whose resources can only be used to pay a judgment or a debt account on the NPM. (After 25 years, the balance of the fiduciary account is returned to the NPM.) [27] [28] Annual trust payments of an NPM in a given state are calculated by multiplying a cigarette amount set by the state legislator and set by law by the number of cigarettes sold in that state by the NPM in the year for which the payment is made. [29] The parties agree that this amount per cigarette is roughly equal to that requested by the MSA to OPMs and PMS for sales that are not tax-exempt. To the extent that this differs, OPMs pay a little more than PMS, which pay a little more than NPM.
[30] The fine for 1999 was $0.40 per package,19, including the cost of the four individual national comparisons that were not part of the MSA. But the price per package increased by USD 0.73 between 1998 and 1999, an increase of 29.7% for the year, most of which occurred in the month following the MSA.9.20. , companies remained profitable.
