State of Texas v. American Tobacco Co

HANEN, District Judge:

The issue before this Court involves the proper interpretation of the settlement agreement between the State of Texas and five large cigarette manufacturers. Specifically, this Court must determine whether Brown & Williamson Tobacco Corporation n/k/a Brown & Williamson Holding, Inc. (“B&W”) breached its obligations under the settlement agreement by failing to report cigarettes that B&W manufactured for Star Tobacco & Pharmaceuticals (“Star”) as its own for the purpose of calculating B&W’s annual payments to Texas. As a consequence of B&W’s alleged underreporting, the…