Tobacco Non-Participating Manufacturer NPM Issues

Every tobacco manufacturer that sells its product in Pennsylvania has two options under the Tobacco Settlement Agreement Act:

The tobacco manufacturer must either join the Master Settlement Agreement; or the tobacco manufacturer must setup a qualified escrow account.

Payments to the escrow account are based upon the number of sticks sold in Pennsylvania during a specified timeframe. The money in the escrow account reverts back to the non-participating manufacturer in 25 years if no suits are filed against the non-participating manufacturer.