Tobacco company pays up in Ohio

Bryan Cohen Oct. 5, 2011, 3:34pm


COLUMBUS, Ohio (Legal Newsline) - Ohio Attorney General Mike DeWine announced a settlement on Wednesday with a tobacco maker for allegedly failing to establish an escrow account for the sale of its cigarettes as required by law.

Grand River Enterprises Six Nations LTD deposited $984,185 into a state escrow account, paid penalties and post-judgment interest of $1,052,000 to the state General Revenue Fund and paid attorney fees and costs of $82,000 to DeWine's office as part of the settlement.

"We are glad to have reached this settlement," DeWine said. "It's great news for the state's tobacco enforcement laws and the taxpayers and citizens of Ohio with more than a million dollars going to the General Revenue Fund."

The negotiated settlement ends the state's suit against the company as well as Grand River's appeal.

Grand River allegedly did not establish and fund the escrow account for its product in Ohio between 2002 and 2004. Grand River is not currently certified by DeWine's office to sell cigarettes in Ohio.

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