Pennsylvania has become the 24th state to sue two major tobacco companies over money they withheld from payments that are required under the 1998 national tobacco settlement.

RJ Reynolds Tobacco and Lorillard Tobacco announced last month they were withholding a portion of their payments because the states have not "diligently enforced" the agreement, causing them to lose market share to smaller companies that are not part of the settlement.
In a lawsuit filed in Philadelphia County court last week, the Pennsylvania attorney general's office said the companies should pay US$ 47 million they withheld from the US$ 379 million they were scheduled to pay the state this year.
The lawsuit says state officials sought and secured payments from 22 smaller tobacco companies, filed lawsuits resulting in multimillion-dollar judgements against seven others and seized 1,300 cartons of illegal cigarettes.
The lawsuits against Reynolds and Lorillard were filed after negotiations between the companies and the National Association of Attorneys General broke down last month. Under the eight-year-old landmark settlement, the three biggest tobacco companies agreed to pay more than US$ 200 billion to 46 states over 25 years. The states, which in turn agreed not to sue the companies, use the money for purposes that include public health and education.
RJ Reynolds, the nation's second-largest cigarette maker, withheld US$ 647 million of US$ 2 billion it was supposed to pay this year, while number three Lorillard withheld US$ 108 million of its US$ 666 million payment. Industry leader Philip Morris USA paid its full US$ 3.4 billion but is trying to have that sum reduced. (pi)