Big Tobacco Cos. Challenge $6.5B Payout Deal With States

Law360, New York (April 16, 2012, 5:22 PM EDT) -- Philip Morris USA Inc., R.J. Reynolds Tobacco Co. and Lorillard Tobacco Co. have paid roughly $6.5 billion this year under a master settlement resolving 46 states' health claims, but the companies are disputing portions of those payments, they said Monday.

The tobacco giants made the payments under a landmark 1998 deal valued at $206 billion, which requires tobacco companies to make payments to states every year to compensate them for the health costs of tobacco-related illness.

The deal allowed the companies to reduce their payments in...
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