General Tobacco Pulls Brands Amid Dispute

Source from:  Bizjournals.com 02/01/2010

General Tobacco said Wednesday it will comply with recent notices regarding the removal of its cigarette brands from certain state directories of approved brands for sale. Some states have pursued additional payments from Mayodan-based General Tobacco related to the Master Settlement Agreement, a deal reached in 1998 when tobacco companies agreed to pay states for the costs of treating smoking-related illnesses. In a statement Wednesday, General Tobacco said it continues to dispute the validity of the agreement and maintains its claims that it is owed more than $95 million in overpayment to states. "Consumers should not have to lose the choice of GT's brands over what the company considers to be a bona fide dispute over the interpretation of the MSA and its validity under federal and state law," said Ronald Denman, GT's executive vice president and general counsel. "Big Tobacco got away with billions in sales with no payments to the states before the MSA and is now squeezing its competitors out of business under the auspices of the MSA so that it can make many more billions." The de-listing does not pertain to the filtered cigars or pipe tobacco products sold by GT. Enditem