Jump to full article: Reuters, 2006-03-28
Author: Joan Gralla
Intro: An arbitrator ruled that cigarette makers lost market share as a result of a settlement reached with U.S. states, boosting the chance of them reducing the $6.5 billion payment owed next month, according to a copy of the decision obtained by Reuters on Tuesday.
However, U.S. states involved in the settlement have said they would fight in court if they lost. The states argue another requirement under the settlement was met because they collected funds from tobacco companies that did not sign it.
Big Tobacco in 1998 agreed to pay states $206 billion to help pay for the costs of treating ailing smokers. Their next payment is due in mid-April, and several cigarette makers want to withhold about $1.2 billion because sales have dropped.
In a statement on Tuesday, Connecticut Attorney General Richard Blumenthal, vowed to force the cigarette makers to pay in full.
"I will stop Big Tobacco from shamelessly shirking its obligations under the settlement agreement," he said.
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