Tobacco Company Makes Payment to State
Tobacco giant Philip Morris USA has made its multimillion dollar payment to California as part of a 1998 national tobacco settlement. The cigarette maker had warned that it could miss the payment after an Illinois court handed down a $10 billion ruling in a lawsuit over Philip Morris´ light cigarettes.
The judge ordered the company to post a $12 billion bond to appeal the ruling, but now cut the bond amount in half. That lets Philip Morris make its settlement payments.
The company´s financial troubles sent ripples through California´s finances after state officials postponed selling bonds tied to the settlement money. It´s unclear when the bonds will now be sold.