Item 3. Legal Proceedings.

The information required by this Item is included in Note 18 and Exhibits 99.1 and 99.2 to this Form 10-K. Altria’s consolidated financial statements and accompanying notes for the year ended December 31, 2020 were filed on Form 8-K on January 28, 2021 (such consolidated financial statements and accompanying notes are also included in Item 8). The following summarizes certain developments in Altria’s litigation since the filing of the Form 8-K.

Recent Developments

▪Engle Progeny Trial Results

In Berger (Cote), as a result of the Eleventh Circuit Court of Appeals’ decision affirming the punitive damages award, PM USA recorded a pre-tax provision of $21 million, including interest, for such award in the first quarter of 2021. PM USA previously recorded a pre-tax provision of approximately $6 million, including interest, for the compensatory damages award. PM USA paid these amounts, plus fees in the amount of $1.5 million, in February 2021.

In Santoro, as a result of the Florida Supreme Court’s denial of PM USA’s appeal of the punitive damages award, PM USA recorded a pre-tax provision of $0.1 million, including interest, for such award in the first quarter of 2021. PM USA previously recorded a pre-tax

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provision of approximately $0.8 million, including interest, for the compensatory damages award. In January 2021, PM USA paid the recorded amounts, plus fees and additional interest.

In Sommers, as a result of the Florida Third District Court of Appeals’ non-appealable decision affirming an award of attorneys’ fees, costs and interest, PM USA recorded a pre-tax provision of approximately $3 million, including interest, for such award in the first quarter of 2021.

▪**Non-**Engle Progeny Trial Results

In Greene, a case with a trial court judgment against PM USA for $30 million, in February 2021, the trial court awarded plaintiff attorneys’ fees and costs in the amount of approximately $2.3 million. In February 2021, PM USA served its post-trial motions, including to reverse the judgment or for a new trial.

In February 2021, the Massachusetts Supreme Judicial Court asserted jurisdiction over the appeal in Laramie.

▪Health Care Cost Recovery Litigation

NPM Adjustment Disputes: In connection with a proceeding pursuant to the New York settlement where an independent investigator was to determine the amounts due to the participating manufacturers from New York for 2019 and 2020, the investigator issued its determination in February 2021. Pursuant to that determination, PM USA expects to receive approximately $56 million in April 2021 and approximately the same amount in April 2022.

**▪**IQOS Litigation

In the lawsuit filed by RAI Strategic Holdings, Inc. and R.J. Reynolds Vapor Co. claiming patent infringement based on the sale of the IQOS electronic device and HeatSticks in the United States, the defendants filed counterclaims alleging that plaintiffs’ e-vapor products infringe patents owned by one or more defendants. In December 2020, the court stayed the case due to the COVID-19 pandemic. In February 2021, the court lifted the stay with respect to defendants’ counterclaims.

**▪**Antitrust Litigation

The FTC has postponed the administrative trial against Altria and JUUL, originally scheduled to begin in April 2021, until June 2021.