Tobacco Producers Settlement

Celerity assisted several state attorneys general offices (AGOs) in proving their diligence with meeting the terms of a 1998 landmark multi-billion dollar settlement agreement with a number of tobacco producers. These agreements set penalties to be paid by the producers based on actual future tobacco sales, contingent upon certain criteria. One obligation that fell upon the states was proving diligence in their effort to collect escrow payments from non-party tobacco manufacturers. In order to ascertain the states’ diligence, Celerity independently analyzed data and provided reports to refute the tobacco companies’ experts. Celerity established a repeatable, defensible calculation model that can be used for years into the future to assist state AGOs in cost-effectively and accurately calculating annual penalty payments.