Tobacco Firms Say Payments Made

Source from:  By Michael Felberbaum ASSOCIATED PRESS RICHMOND, Va. 04/17/2008

Philip Morris USA and R.J. Reynolds Tobacco Co. said Tuesday they have made their full annual payments as part of a 1998 settlement under which some cigarette makers pay states for smoking-related health care costs. Philip Morris, an operating company of Altria Group Inc., said it made its payment of $4 billion, including $156 million that it says it doesn't owe. The Richmond-based maker of Marlboro, Virginia Slims and Parliament cigarettes said it will try to get back that portion of the payment through negotiations or arbitration. Denise Keane, executive vice president and general counsel for Altria, said Philip Morris continues to work "in good faith" to resolve the disputed amounts. RJR, based in Winston-Salem, N.C., also made its payment of $2.25 billion, but deposited the disputed amount of $431 million into a separate account, as allowed under the settlement. Enditem