R.J. Reynolds Settles Canadian Cigarette Smuggling Case, to Pay $324 Million

Tobacco company R.J. Reynolds has agreed to pay the Canadian government about $324 million to settle a long-running case involving cigarette smuggling, the Bloomberg reported April 13.

Reynolds, which makes Camel and Pall Mall cigarettes, agreed to settle a civil suit centered on cigarette smuggling in the 1980s and 1990s. Northern Brands International, Inc., a Reynolds subsidiary, agreed to pay an additional $75 million.

Both companies were accused of aiding the sale and possession of counterfeit cigarettes in Canada. Reynolds no longer sells tobacco products in Canada, but under the settlement terms it must aid the Canadian government in battling contraband if the company decides to resume sales north of the border.