The state of Florida asked a court on Wednesday to order Brown & Williamson to pay the state US$ 17 million, accusing the tobacco company of shortchanging Floridians under a landmark 1997 tobacco settlement.
State Attorney General Charlie Crist filed a motion in Palm Beach County Circuit Court claiming Brown & Williamson Holdings has failed to report the shipment and sale of more than 7 billion cigarettes, depriving Florida of US$ 17 million in settlement payments and interest.
A company spokesman was not immediately available for comment.
Florida announced in August 1997 a landmark 25-year settlement with the tobacco industry under which cigarette makers were to pay at least US$ 11.3 billion. The pact also required the companies to take down cigarette advertising billboards and halt advertising within 1,000 feet of schools.
The motion filed Wednesday said Brown & Williamson manufactured the unreported cigarettes for Star Tobacco and Pharmaceuticals, which sold them under such brand names as Gunsmoke and Vegas.
The motion asked the court to compel Brown & Williamson to provide accounting of its manufacturing, shipping and production costs, revenues and profits since 1 January 1999.
The attorney general's office said the original settlement agreement called for the company and other cigarette makers to pay a lump sum of US$ 550 million to Florida and make annual payments based on the sales volume of tobacco products.
Florida has received over US$ 4 billion from the settlement, Crist's office said. (pi)