Major Tobacco Companies Drop Legal Challenge To Delaware’s Enforcement Of Tobacco Settlement

The major tobacco companies who make millions of dollars in annual payments to Delaware, as part of a landmark 1998 settlement between the states and tobacco manufacturers, have dropped a legal challenge to Delaware’s enforcement of that settlement.

The legal challenge, which began in 2005, claimed that in 2003 Delaware did not satisfy its obligation to regulate smaller tobacco companies that were not participants in the settlement agreement. If the companies had prevailed in the dispute against Delaware, the state had faced a potential loss of between approximately $4.5 million and $24 million.

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