State Sues Over Tobacco Settlement Payments

Statewide Iowa — Iowa Attorney General Tom Miller accuses tobacco companies Philip Morris, R.J. Reynolds and 16 others of defrauding Iowa of millions of dollars by withholding payments due under the 1998 Master Settlement Agreement.

The settlement agreement requires tobacco manufacturers to pay billions annually to participating states in exchange for the states agreeing not to sue for health-related damages to citizens. The lawsuit was filed in the Polk County District Court yesterday.

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