General Tobacco Sues 52 U.S. Attorneys General Over Restraint of Trade and Violation of the U.S. Constitution

MAYODAN, N.C., Oct 28, 2008 (BUSINESS WIRE) -- North Carolina based manufacturer and distributor General Tobacco (GT) announced today it is suing 52 attorneys general of the United States and its territories and 19 tobacco companies. GT is asking for treble damages in excess of $1 billion from competitors for allegedly conspiring with the states to set up the Master Settlement Agreement (MSA) so that later market entrants, such as GT, have to pay the states substantially more than certain competitors pay.

GT believes the effect of the MSA is to drastically limit future competitors from fair market competition. GT has paid approximately $470 million to the MSA and an additional $36 million in escrow. The complaint, filed in U.S. District Court in Louisville, Kentucky, charges the 52 states and territories' attorneys general with violating the Sherman Anti-Trust Act, its constitutional rights under the Equal Protection and Due Process Clauses of th...
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