ITG Says Delaware Court Rewrote Deal Over Four Reynolds Brands

ITG Brands LLC argued Wednesday that Delaware’s premier business court erroneously rewrote its purchase agreement for the Winston, Salem, Kool, and Maverick cigarette brands, making it liable for payments under a 1990s-era tobacco settlement it never entered.

ITG seeks to reverse a Delaware Chancery Court judgment finding it owes Reynolds American Inc. over $251 million for post-sale payments that Reynolds made under the terms of a deal struck with the state of Florida.

The damages award was a “windfall” for Reynolds, ITG’s attorney, Gregory Garre of Latham & Watkins LLP, said in arguments before the Delaware Supreme Court’s full five-member ...