WINSTON-SALEM, N.C. — R.J. Reynolds Tobacco Co., a unit of Reynolds American Inc., said Tuesday that it will pay the Canadian government 325 million Canadian dollars ($323.4 million) as part of a deal to settle civil claims related to cigarette smuggling in the 1980s and 1990s.
R.J. Reynolds and parent company R.J. Reynolds Tobacco Holdings Inc. no longer sell tobacco in Canada. They sold their international businesses, including RJR-Macdonald Inc., to Japan Tobacco Inc. in 1999.
The company’s best-selling brands include Camel and Pall Mall.
If the company decides to sell tobacco products in Canada in the future, it must implement measures — including packaging and marketing — that will help Canadian authorities fight contraband.
Subsidiary Northern Brands International Inc. also agreed to pay 75 million Canadian dollars ($74.6 million) related to its plea to one count of conspiracy to aid others in the sale and possession of contraband cigarettes in Canada in the early 1990s.
Shares of Reynolds American, whose brands include Camel and Pall Mall, dropped 34 cents to $54.19 in afternoon trading.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info