New York state plans to sue cigarette-makers that disputed $755 million of payments they owed under the $206 billion settlement with states, a spokesman for Attorney General Eliot Spitzer said.
NY state to sue tobacco cos for disputed funds
Apr 18, 2006
NEW YORK, April 18 (Reuters) – New York state plans to sue cigarette-makers that disputed $755 million of payments they owed under the $206 billion settlement with states, a spokesman for Attorney General Eliot Spitzer said on Tuesday.
“We strongly disagree with the decisions of R.J. Reynolds and Lorillard to withhold substantial sums from the states,” the spokesman said, noting that Philip Morris (MO.N: Quote, Profile, Research) had properly deposited its full payment. He added: “We intend to file suit to recover the amounts that we believe are due and owed to New York.”
R.J. Reynolds Tobacco Co (RAI.N: Quote, Profile, Research) has said it put $647 million of its $2.016 billion payment in a special account for disputes. Lorillard (LTR.N: Quote, Profile, Research) put $108 million of its $666 million into the escrow account.
