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Cigarette makers sue Kentucky for violation of tobacco settlement agreement

[JURIST] Four tobacco companies have filed suit against the state of Kentucky for violating the 1998 Master Settlement Agreement (MSA) [PDF text] made between 46 states and more than 40 tobacco companies, regulating payments to states and restrictions on tobacco promotion. The four companies, Vector Group [corporate website], Commonwealth Brands [corporate website], King Maker Marketing [corporate website], and Sherman's 1400 Broadway NYC Ltd., allege that Kentucky granted special treatment to General Tobacco [corporate website], a competitor which does not participate in the MSA, by allowing General Tobacco to finance the payments it makes to the state, an option not available under the MSA. The lawsuit asks the court to void Kentucky's agreement with General Tobacco or provide other companies with similar financing agreements. AP has more.

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