Reynolds Beats Imperial Brands on Winston, Salem, Kool Liability

Imperial Brands Plc’s US unit must cover potentially hundreds of millions in settlement payments to the state of Florida based on sales of Winston, Salem, Kool, and Maverick cigarettes after buying the four product lines from Reynolds American Inc., a Delaware judge ruled.

Vice Chancellor Lori W. Will handed Reynolds a win Sept. 30, saying an asset purchase agreement requires Imperial subsidiary ITG Brands LLC, the third-largest US tobacco company, to pay Reynolds’ share of a multibillion-dollar settlement meant to cover the health-care costs of smoking.

Will, writing for Delaware’s Chancery Court, put off determining exactly how much ITG ...