General Tobacco Challenges 1998 Tobacco Settlement

General Tobacco, a relatively small, recent entrant into the tobacco business has sued the states attorneys’ general and tobacco companies participating in the 1998 settlement, which calls for tobacco companies to make payments to states to offset health care costs attributable to smoking.  General Tobacco argues that the agreement anticompetitively restricts competition from new entrants because dealers are unwilling to carry products from non-parties to the settlement and the settlement’s terms discriminate against new signatories, like General Tobacco.

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