Fla. (Legal Newsline) — Florida Attorney General Pam Bondi announced an
enforcement motion Jan. 18 against TG Brands LLC, formerly known as Lignum-2
LLC (ITG), and R.J. Reynolds Tobacco Company (RJR) to enforce the explicit
terms of the tobacco settlement agreement dated Aug. 25, 1997.
1997 settlement, the involved tobacco companies agreed to annual payments of
several hundred million dollars to be made in perpetuity. The payments, as per
the settlement agreement, are to compensate Florida for health expenses that
arise from citizens’ consumption of cigarettes sold by the defendants.
three iconic cigarette brands – Winston, Kool and Salem – to ITG for $7
billion. The company, however, refused to include the sale of these brands when
making annual payments to the state. ITG, for its part, also refused payments
even after assuming payment obligations for the brands after buying them from
RJR. Bondi’s office alleges both companies are liable for millions of dollars
of missed payments.
of major, pre-existing tobacco brands to another company for billions of
dollars does not cause the payment obligations to vanish like a puff of smoke,”
Bondi said. “I look forward to the state obtaining prompt relief.”