UNITED STATES
West Virginia sues Sekap

State Attorney General Darrell McGraw's office has accused Greek company, Sekap S.A., of illegally selling almost 1 million cigarettes in West Virginia, according to a report by the Associated Press.

McGraw's office filed a lawsuit on Monday in Kanawha County Circuit Court against Sekap S.A., claiming the company has not complied with the Tobacco Master Settlement Agreement. State law requires tobacco companies that are not a ‘participating manufacturer’ to place in an escrow account a small amount of money for each unit of cigarettes sold, the lawsuit said.
The lawsuit said that Sekap, based in Piraeus, Greece, sold almost 1 million GR and Marathon brand cigarettes in West Virginia in 2006 and should have placed roughly USD 20,944 in the escrow account. Sekap was sent a letter in May informing the company that it was not in compliance with the law but did not respond, the lawsuit said.
The lawsuit seeks a penalty of 300-percent interest on the amount owed if the court determines that Sekap knowingly withheld the money. If the court determines Sekap did not knowingly fail to comply, the lawsuit seeks a penalty of 100-percent interest.

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