New Mexico Sues Tobacco Companies for Withholding Payments

Dec.01.2022
New Mexico Sues Tobacco Companies for Withholding Payments
New Mexico sues tobacco companies for breach of contract and collusion in withholding annual funds related to 1998 settlement agreement.

New Mexico is currently suing over a dozen tobacco companies in relation to payments associated with a 1998 settlement agreement, alleging collusion and breach of contract.


Balderas alleges that these companies have withheld part of their annual payments according to the multi-state tobacco settlement agreement. According to the attorney general, New Mexico has lost over $84 million in the past 14 years.


These baseless delaying tactics have no end, and it's time to compel tobacco companies to pay the damages they owe to New Mexico – providing funding for critical health initiatives," said Balderrama.


According to a statement from the Prosecutor General's Office, under the settlement agreement, the company is required to make annual payments, but disputes are raised every year, resulting in a certain percentage of payments being withheld, which has led to a possible arbitration process that could take several years.


According to officials, the amount seized is increasing every year. Lawsuits claim that tobacco companies have not disclosed the amount seized or where the seized funds are being held, and that the seizure methods change every year.


According to the lawsuit, this conspiracy is a well-thought-out strategy intended to permanently and deceitfully reduce the amount owed by the defendant under the settlement agreement, and undermine the purpose of the agreement.


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