MADISON, Wis. (AP) — A federal judge in Virginia has ruled the federal government can’t seize about $20,000 a defunct tobacco maker held in trust for Wisconsin and Oregon.
Under a settlement states reached with major tobacco companies over health care expenses in the 1990s, states adopted statutes requiring companies that didn’t participate in the settlement to pay into holding accounts. The accounts would cover the states’ claims if they sued the companies within 25 years.
According to court documents, C.L.P. Inc. was convicted of conspiring to evade the federal cigarette excise tax and mail fraud. Last year U.S. District Judge James P. Jones allowed the government to seize $722,000 in C.L.P.’s holding accounts for the states.
Wisconsin and Oregon objected, and Jones ruled on Sept. 9 the federal government has no claim on those states’ shares until the 25-year window closes.
