Nevada first state to get judgment under tobacco settlement law
CARSON CITY (AP) - A Reno judge's ruling has apparently made Nevada the first state to get a judgment against a cigarette manufacturer under terms of a national settlement, the attorney general's office said Thursday.
Washoe District Judge Jerry Polaha imposed a civil penalty of $64,687 against a Las Vegas firm, NTD Inc., and also ordered the company to put $21,562 into an escrow account.
The ruling stems from a lawsuit filed by Attorney General Frankie Sue Del Papa, who said state law now requires cigarette manufacturers to either sign the national settlement or pay one cent per cigarette sold in Nevada into an escrow account.
Nevada is in line for about $1.2 billion over the next 25 years from major cigarette manufacturers, under terms of the settlement.
The state law cited by Del Pap's office ensures that cigarette companies that don't sign the settlement put funds into escrow accounts to cover future health care-related judgments. It also prevents such companies from undercutting prices of competitors.