Federal Judge: Tobacco Company Brand Sale Does Not End Texas Settlement Liability

Mealey's (February 28, 2020, 10:52 AM EST) -- TEXARKANA, Texas — A federal judge in Texas on Feb. 25 granted in part, denied in part and carried in part motions filed by the state of Texas and Philip Morris USA to enforce a 1998 settlement against R.J. Reynolds Tobacco Co. (RJR), holding that RJR was still liable for payments under the settlement despite its 2015 sale of four cigarette brands, while leaving the question of the purchaser’s obligations to Texas to the Delaware court currently hearing litigation over the asset purchase agreement (APA) (Texas v. American Tobacco Co., et al., No. 96-91, E.D. Texas)....