Tobacco Companies Make Payments on Settlement

Source from:  jointogether.org April 17, 2008  04/17/2008

Tobacco companies Philip Morris USA and R.J. Reynolds have made their full yearly payments as mandated under the 1998 settlement, the Associated Press reported April 15. The $4 billion dollar payment made by Philip Morris and the $2.25 billion paid by R.J. Reynolds are designated to states for smoking-related health care costs. Several tobacco companies agreed to make about $206 billion in annual payments over twenty-plus years as part of the settlement. Both companies are disputing part of their payments, saying a provision in the settlement entitles them to a reduction if they lose market share to competitors operating outside the pact. Philip Morris USA is the nation's No. 1 cigarette maker. Philip Morris says it has paid more than $42 billion under the settlement and previous agreements. R.J. Reynolds has paid about $20 billion. Enditem