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Calif., Reynolds Agree on $5 Million Settlement
May 10, 2006

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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.

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