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Tobacco companies pay $6.5 billion to U.S. states

The payments are part of the $200 billion settlement over tobacco-related health care costs

Three major U.S. tobacco companies paid 46 U.S. states a total of $6.5 billion this year, as part of the landmark 1998 Master Settlement Agreement.

Under the 25-year deal, the country’s four largest cigarette companies agreed to pay a $200 billion sum to compensate states for tobacco-related health care costs. This year, Phillip Morris paid $3.5 billion, Reynolds American Inc. paid $1.9 billion and Newport-maker Lorillard contributed $1.1 billion.

Alanna Byrne

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