Washington, DC - Robert J. Spagnoletti, Attorney General for the District of Columbia announced today that the District has filed a lawsuit in Superior Court to protect the District's payments under the multi-state tobacco settlement agreement. The lawsuit names Philip Morris USA, Inc., R.J. Reynolds Tobacco Company, Lorillard Tobacco Company, and nine smaller tobacco manufacturers as defendants.
The lawsuit asks the Superior Court to determine that the District has "diligently enforced" a statute that imposes financial obligations on all tobacco manufacturers whose cigarettes are sold in D.C., including manufacturers that did not join the landmark 1998 multi-state tobacco settlement. Under the settlement, diligent enforcement of these statutory obligations protects the District from possible downward adjustments to its settlement payments.
Last week the District received $35 million in tobacco settlement payments, bringing the total payments it has received under the settlement to $288 million. In 2001, the District of Columbia Tobacco Settlement Financing Corporation issued $521 million in bonds that are being repaid from the District's tobacco settlement payments.