As the proposed legislation was debated in Congress, some states began to settle their disputes against the tobacco industry. On July 2, 1997, Mississippi became the first. Over the next year, Florida, Texas and Minnesota followed, with the four states bringing in more than $35 billion in total. Several characteristics of the MSA may have contributed to the future viability of the business. First, the MSA could work together to make the prize. Companies that suffer a common “cost shock” from MSA`s payment obligation could increase their selling prices of cigarettes, without fear of lower prices relative to their main competitors or an antitrust review. The postponement in the future should be stronger in response to a federal tax (such as the MSA) than to an increase in the state excise duties. Given that there is potential for cross-border purchases for the latter,11 To fill this gap, the National Association of Attorneys General (“NAAG”) introduced the Repealer Allocable Share Release (ASR Repealer) in late 2002, a model that eliminated the RSA. In a September 12, 2003 memo, Attorney General William H. Sorrell of Vermont, president of the NAAG Tobacco Project, stressed the urgency that “all states take steps to combat the proliferation of NPM sales, including the adoption of additional legislation and allied action laws and the consideration of other measures to serve the interests of states to avoid a reduction in tobacco benefits.” He noted that “NPM sales across the country hurt all countries,” that NPM sales in each state reduce payments to any other state, and that states have an interest in reducing NPM sales in each state.  Tobacco revenues declined faster than expected when the titles were created, leading to technical failures in some countries. Some analysts predict that many bonds will be completely insolvent.
Many of the longer-term bonds have been downgraded to junk food ratings.  More recently, financial analysts have begun to worry that the rapid growth of the e-cigarette market is accelerating the $97 billion decline in tobacco bonds.  Large-population states such as New York and California are more affected than others.  Legislators in several states have proposed measures to tax e-cigarettes, such as traditional tobacco products, to compensate for the decline in TMSA revenues. They believe that the taxation or ban on e-cigarettes would be beneficial for the sale of flammable cigarettes.  In November 1998, the attorneys general of the other 46 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, concluded the Master Settlement Agreement with the four largest cigarette manufacturers in the United States. (Florida, Minnesota, Texas and Mississippi had already entered into individual agreements with the tobacco industry.) The four manufacturers – Philip Morris USA, R. J. Reynolds Tobacco Company, Brown – Williamson Tobacco Corp. and Lorillard Tobacco Company – are designated in the MSA as the original participating manufacturers (OPMs). In the mid-1990s, more than 40 states launched a lawsuit against the tobacco industry seeking relief under various consumer protection laws and agreements.
 The first was declared in May 1994 by Mississippi Attorney General Mike Moore. For 40 years, tobacco companies have not been responsible for cigarette-related diseases. Then, starting in 1994, led by Florida, states sued big tobacco across the country to recover public spending on medical expenses due to smoking. By amending the law to ensure that they would win in court, the states extorted a quarter of a trillion dollars, which was passed on to the price of cigarettes.