Minnesota Court Rules Reynolds Tobacco Must Continue Settlement Payments

The R.J. Reynolds Tobacco Co. has suffered another setback stemming from a previous lawsuit's settlement agreement. 

A district court in Minnesota has ruled that R.J. Reynolds must follow through on payouts from a legal dispute dating back to 1998.

A Master Settlement Agreement at that time imposed fees on tobacco companies that would be routed to pay for health care costs in various states.

According to the Winston-Salem Journal, Minnesota claimed that Reynolds stopped settlement payments after selling off several of its brands to ITG of Greensboro, a subsidiary of the UK-based Imperial Brands Plc. 

The Minnesota court ruled last week that Reynolds is still responsible for the payments, which could mean millions of dollars for that state. The district court must still determine how much Minnesota stands to gain.