ITG Brands to Pay Reynolds $251 Million for Settlement Payments

ITG Brands LLC was ordered Monday to reimburse Reynolds American Inc. the more than $251 million it had paid to the state of Florida as part of a settlement agreement that pre-dated ITG’s acquisition of Reynolds’ cigarette brands.

The payments Reynolds made to Florida on behalf of ITG-owned brands aren’t excluded under the companies’ purchase agreement, and Reynolds is owed reimbursement of that amount to restore it to the position it held before ITG failed to assume that liability, Vice Chancellor Lori W. Will of the Delaware Chancery Court wrote.

ITG purchased Reynolds tobacco brands Winston, Salem, Kool, and ...