The state of Texas brought action against tobacco companies for breaching their obligations under a settlement agreement. The state argued that one of the tobacco companies had failed to report as their own cigarettes that it manufactured for another company, a figure used to calculate the tobacco company’s annual payments to Texas. As a consequence of the alleged underreporting, Texas claimed that it had been deprived of millions of dollars in settlement payments between the years 1999 and 2002. The Court concluded that the tobacco company did not breach its obligations to the state under the settlement agreement.
Governments or insurance agencies may seek reimbursement from the tobacco companies for health care costs related to tobacco. The most famous example is the case brought by individual states in the U.S.A. that resulted in the Master Settlement Agreement.
The state of Texas brought action against tobacco companies for breaching their obligations under a settlement agreement. The state argued that one of the tobacco companies had failed to report as their own cigarettes that it manufactured for another company, a figure used to calculate the tobacco company’s annual payments to Texas. As a consequence of the alleged underreporting, Texas claimed that it had been deprived of millions of dollars in settlement payments between the years 1999 and 2002. The Court concluded that the tobacco company did not breach its obligations to the state under the settlement agreement.