Big Sky Times

Several tobacco companies are being sued by Montana for supposedly holding back millions of dollars owed to the state in a landmark tobacco settlement agreement. 

Montana Attorney General Tim Fox announced on Monday, April 13 that his office will be suing several tobacco companies for allegedly holding back $43 million from the state; Fox told Montana Public Radio that "we will not let them get away with it."

An agreement was reached between major tobacco companies and the U.S. states 22 years ago, which said these cigarette companies had to pay states $200 billion and restrict advertising geared toward youths, MTPR reported. States like Montana agreed not to sue these companies to cover the costs of ill patients as part of the deal. 

The defendants in the lawsuit, Philip Morris, R.J. Reynolds, and Brown & Williamson are regularly refusing to pay what they owe to Montana, the state said according to MTPR. Also, these companies are claiming groundless disputes in an attempt to avoid paying the millions of dollars to Montana annually, Montana Free Press reported. 

When the companies refuse to pay, Montana has to take them to court for each dispute. 

If Montana does win a dispute, the companies still refuse to pay the state until all of their disputes with any other state in the country are resolved, Montana Public Radio said. 

Fox told the news outlet that these tobacco companies are purposely continuing to file disputes to avoid paying what they owe Montana. 

“We also have a set of statutes called the False Claims Act that provides for stiff penalties for companies who try to avoid paying money they owe the state," Fox said. "The tobacco companies have violated these laws, and we will not let them get away with it. A deal is a deal.”

Fox said he expects the tobacco companies to keep delaying their payments and doesn't think the disputes will end quickly, according to MTPR. He said he thinks they will avoid the lawsuit for as long as they can. 

The payments tobacco companies give to Montana are used to fund programs to help people to stop smoking, the news outlet said. The funds are also used for children's mental health strategies, Medicaid, the Children's Health Insurance Program and other disease programs.