The Brown & Williamson (B&W) tobacco company sold seven billion cigarettes under another company's name but failed to report the sales to states as part of the 1998 nationwide tobacco settlement, the Florida attorney general says.

The Associated Press reported May 17 that AG Charlie Crist is seeking $17 million in back payments plus a fine for contempt of court against B&W, which sold the cigarettes under contract with Star Tobacco & Pharmaceuticals.

"They've been making regular payments but the payments were not up to what they should be," Crist said. "We are asking the court to require this company to live up to its part of the bargain and stop shortchanging the citizens of this state."

A lawyer for R.J. Reynolds, which merged with B&W in 2004, said the profits should not be applied to the settlement payments because Star was not a party to the 1998 agreement.

A similar case filed in 2004 in Texas resulted in a judge ruling in favor of B&W, but the state is appealing that decision.