Reynolds, Imperial Brands Unit Spar Over Florida Tobacco Damages

Two of the country’s biggest tobacco companies argued in a Delaware court Thursday over how much one owes the other for annual payments to the state of Florida as part of a 1990s-era tobacco settlement meant to cover the public health costs of smoking.

At issue is whether ITG Brands, the US unit of Imperial Brands Plc, is responsible for making payments to the state based on sales of product lines the company bought from Reynolds American Inc. ITG argues that it isn’t part of the settlement and owes limited damages without interest or legal fees.

“No reasonable party would ...