Philip Morris USA apparently has decided against playing hardball over a hefty settlement, but Reynolds American Inc.'s RJR is hanging tough. Philip Morris, the nation's largest cigarette maker, made its $3.4 billion payment Friday, though it believes that sum should be reduced to reflect market losses stemming from its participation in the 1998 Master Settlement Agreement. RJR also made a payment -- but not the full amount. Some states are threatening legal action if the companies try to make reductions.
Philip Morris Makes Payment to States, While RJR Takes Harder Line
The Associated Press
April 4, 2006