Texas Attorney General Ken Paxton announced a $195 million settlement agreement with a major tobacco company, according to a press release.
The 1998 Texas Tobacco Settlement Agreement states that major tobacco companies “must make annual payments to Texas to reimburse it for smoking-related health care costs.”
ITG Brands LLC acquired four cigarette brands from R.J. Reynolds Tobacco Company: Kool, Maverick, Salem and Winston in 2015.
Since then, neither brand paid the State of Texas the required settlement payment.
ITG Brands has now assumed the financial obligations and agreed to pay $195 million in back payments owed to Texas.
