DOVER, Del. (AP) — A Delaware judge says cigarette manufacturer ITG Brands assumed liability for tobacco settlement payments to the state of Florida when it acquired four brands from Reynolds American in 2015.
Vice Chancellor Lori Will also said in Friday’s ruling that ITG must compensate Reynolds American for losses due to that assumed liability. Reynolds sold the Kool, Winston, Salem and Maverick brands to ITG in 2014 to gain federal regulators’ approval of Reynolds’ acquisition of Lorillard Inc.
Before the sale closed, Reynolds American affiliate R.J. Reynolds Tobacco Co. was making payments under a preexisting settlement agreement with Florida for reimbursement of smoking-related health care costs.
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Written by: Editor