Texas AG Paxton announces $195M settlement agreement with tobacco companies

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PHOTO: KVEO

HARLINGEN, Texas (KVEO) — 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. 

“I am very pleased with the resolution to this hard-fought lawsuit. Texas taxpayers are owed substantial back payments, and we will not allow any company to shirk their obligations to the people of this state,” Paxton said in a statement.

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