Brown & Williamson Settles Dispute

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From Bloomberg News

Brown & Williamson Tobacco Corp., a unit of British American Tobacco, agreed to pay about $150 million to resolve claims by state governments that it avoided payments required by a 1998 settlement, state attorneys general said.

The dispute centered on cigarettes Brown & Williamson made for Star Tobacco Co., which never joined the 1998 accord. Brown & Williamson spokesman Mark Smith said the third-largest U.S. cigarette maker still came out ahead because credits based on lost market share will result in a $33-million net refund.

Market share determines each cigarette maker’s share of settlement payments.

The agreement ends the latest dispute between the states and the tobacco industry over implementation of the $206-billion settlement reached in 1998.