"Our long-term goal is to bring about the greatest possible decline in cigarette smoking," said General Spagnoletti. "Ensuring that tobacco manufacturers comply with all terms of the settlement - including marketing restrictions and payment obligations - brings us closer to that goal."
Each of the tobacco companies named in the suit contend they are entitled to reductions in their settlement payments because they have lost a share of the market to companies that did not join the tobacco settlement. This month, R.J. Reynolds and Lorillard paid over $750 million of their annual settlement payments into a disputed payment account. The District's share of these disputed funds is about $4.6 million.
In addition to requiring large monetary payments, the tobacco settlement places important restrictions on manufacturers' advertising and marketing practices. In addition to the District, the settlement includes 46 states and five U.S. territories. Since the settlement was reached, cigarette sales in the U.S. have fallen by more than 21 percent.
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