Judge rules for state in tobacco lawsuit
by MBJ Staff
Published: August 25,2011
JACKSON COUNTY — Attorney General Jim Hood’s lawsuit against Brown & Williamson (B&W) Tobacco Corporation received an $8 million victory in court.
Judge Jaye A. Bradley, in the Chancery Court of Jackson County, issued a ruling on Hood’s motion to enforce settlement against B&W.
The original tobacco settlement requires the company to pay Mississippi for every cigarette it makes and ships. Hood argued that B&W made cigarettes but shipped them to a third-party manufacturer, STAR. STAR tobacco then sold those cigarettes to consumers in Mississippi.
“The Court agreed with our position that B&W could not use such trickery to avoid paying Mississippi for those cigarettes,” said Hood.
Accoording to Hood, Judge Bradley’s ruling stated: “There is no dispute that during the time period of 1999 through 2002, B&W manufactured and shipped to STAR more than 7.5 billion cigarettes. Further, there is no dispute that during the relevant time period at least 600 million STAR cigarettes were sold in Mississippi. However, B&W did not include these STAR cigarettes within their calculations for payments made to Mississippi pursuant to the settlement agreement.”
Bradley ordered B&W to pay approximately $8.1 million to the state. It also ordered the company to pay all the state’s attorneys fees and costs. The court also stated that it would hold in abeyance awarding any punitive damages until it determines how much B&W owes on other matters that were raised in the litigation.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Spivey named Under 40 Business Person of the Year by the Mississippi Business Journal
- Bids on reworking Interstate 55 stretch are rejected
- JACK WEATHERLY: Economic development in these parts is a ‘family’ business
- Two new casinos like the odds on Mississippi Gulf Coast
- Report ranks state schools' performance 51st in the nation
- The leadership styles of President Obama
- JACK WEATHERLY: Finding a house, defending a neighborhood, finding a voice
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- WRESTLING SUCCESS — Ted DiBiase Jr. leaves ring to become entrepreneur