CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

The following table lists the number of Individual Actions by state:


State						Number of Cases
Massachusetts						46 *
Illinois						22
Oregon						7
Florida						7
US Virgin Islands - St. Croix						5
Nevada						4
Louisiana						2
New Mexico						2
Hawaii						1
California						1

*In addition to the active lawsuits pending in Massachusetts, Liggett has received 82 notices of intent to initiate litigation under the Massachusetts Consumer Protection Act, Chapter 93 A. Under Chapter 93 A, consumers must serve a 30-day demand letter (the “Demand”) before filing a complaint alleging unfair or deceptive business practices. The Demand must include an offer of settlement and the business served with the Demand is required to make a “reasonable” counteroffer within 30-days. Chapter 93 A contains a legal fee shifting provision. Liggett is in the process of investigating these claims and complying with the procedural requirements of Chapter 93 A. Of the 82 claims, Liggett has determined that the vast majority never used a brand manufactured by Liggett.

The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2024 was as follows:


	Current Liabilities						Non-Current Liabilities
	Amounts due under Master Settlement Agreement		Litigation Accruals		Total		Amounts due under Master Settlement Agreement		Litigation Accruals		Total

Balance as of January 1, 2024	$	8,812	$	351	$	9,163	$	8,747	$	13,885	$	22,632
Expenses	134,973		264		135,237		—		—		—
NPM Settlement adjustment	(5)		—		(5)		(164)		—		(164)
Change in MSA obligations capitalized as inventory	743		—		743		—		—		—
Payments	(14,489)		(669)		(15,158)		—		—		—
Reclassification to/(from) non-current liabilities	375		3,735		4,110		(375)		(3,735)		(4,110)
Interest on withholding	791		263		1,054		—		561		561
Balance as of June 30, 2024	$	131,200	$	3,944	$	135,144	$	8,208	$	10,711	$	18,919

The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2023 was as follows:


	Current Liabilities						Non-Current Liabilities
	Amounts due under Master Settlement Agreement		Litigation Accruals		Total		Amounts due under Master Settlement Agreement		Litigation Accruals		Total

Balance as of January 1, 2023	$	14,838	$	296	$	15,134	$	11,116	$	16,117	$	27,233
Expenses	135,989		18,375		154,364		—		—		—
NPM Settlement adjustment	—		—		—		(311)		—		(311)
Change in MSA obligations capitalized as inventory	(35)		—		(35)		—		—		—
Payments	(16,776)		(635)		(17,411)		—		—		—
Reclassification to/(from) non-current liabilities	1,635		3,707		5,342		(1,635)		(3,707)		(5,342)
Interest on withholding	—		112		112		—		791		791
Balance as of June 30, 2023	$	135,651	$	21,855	$	157,506	$	9,170	$	13,201	$	22,371