Judge Orders RJ Reynolds to Keep Paying Florida Millions
A Palm Beach circuit judge ordered R.J. Reynolds Tobacco Co. to continue paying the state millions of dollars in settlement money despite selling off…
December 28, 2017 at 03:00 PM
2 minute read
A Palm Beach circuit judge ordered R.J. Reynolds Tobacco Co. to continue paying the state millions of dollars in settlement money despite selling off major brands.
Circuit Judge Jeffrey Dana Gillen issued his ruling Wednesday, nearly a year after Attorney General Pam Bondi sued the tobacco company and Imperial Tobacco Group.
The “ruling will ensure Florida's landmark tobacco settlement is honored and our state receives the money it is owed,” Bondi said in a news release. “My office is committed to pursuing all appropriate remedies when companies try to evade their monetary obligations to the state of Florida.”
When Bondi filed the lawsuit last January, she said Florida was already owed $45 million and could lose $30 million a year going forward. Gillen said until R.J. Reynolds has its obligation to pay Florida transferred to Imperial Tobacco Group, it must continue to pay. Last summer, London-based British American Tobacco took over North Carolina-based Reynolds American Inc.
There was no answer at R.J. Reynold's media office Thursday, and a message said there was no voice mailbox set up for the line. An email seeking comment wasn't immediately returned.
Reynolds and other large tobacco companies were part of a 1997 multibillion-dollar settlement with Florida to compensate the state for treating sick smokers. The company sold cigarette brands Kool, Winston, Salem and Maverick to Imperial Tobacco Group in 2015, and neither company has paid the state since then.
Pushed by then-Gov. Lawton Chiles, Florida was one of the first states in the U.S. to seek damages from tobacco companies. The state's initial lawsuit sought reimbursement for Medicaid costs in the past and the future and contended tobacco companies engaged in unlawful actions and misleading advertising.
Last year, the state was projected to receive more than $350 million from the settlement.
Brendan Farrington reports for the Associated Press.
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