Calif., Reynolds Agree on $5 Million Settlement May 10, 2006
News Summary
It will cost R.J. Reynolds $5 million to settle a California case where the company was accused of violating a state ban on distributing free cigarette samples, Reuters reported May 8.
The deal announced between the company and the state attorney general's office includes a $1-million payment to a nonprofit group for tobacco-control education and advocacy, a $3.1-million civil penalty, and $900,000 in court costs and fees.
The settlement marks the end of a 2001 lawsuit filed by the state; the trial court originally ordered the tobacco company to pay a $14.8-million civil penalty for illegally distributing more than 100,000 free packs of cigarettes at events on public property.
COMMENTS ON THIS ARTICLE: