Third-Party Validation of Settlement Involving Tobacco Manufacturers Required Deep Analysis of Disparate Data

Background & Challenges

BDO was retained to conduct an independent third-party validation in relation to a settlement involving tobacco manufacturers. 

Approach

A Big Four firm calculated the annual amount owed by the manufacturers to the states to address the increased healthcare costs. As part of this engagement, BDO received disparate datasets from various parties yielding over 100 different sources to digest. This investigation was carried out across 36 states with coordination by three law firms and Attorney Generals of the respective states.

Client Impact 

BDO’s analysis determined whether the states had appropriately collected taxes or escrow from the manufacturers and calculated outstanding amounts due. BDO also assessed the annual impact of the non-participating manufacturers sales on the participating manufacturers.