Article: SJC sends tobacco-money dispute to arbitration panel State says it is owed $60 million

The state Supreme Judicial Court ruled yesterday that a dispute over whether two major tobacco companies have shortchanged Massachusetts by some $60 million in settlement payments over the past two years must be resolved by an arbitration panel, rather than by a state judge.

Massachusetts has been receiving $250 million to $350 million annually from the tobacco industry since 1998 as its share of a landmark settlement between nearly all the states and about 40 tobacco companies to settle smoking-related lawsuits.

But R.J. Reynolds Tobacco Co. and Lorillard Tobacco Co. contend that auditor's reports released last year and this year suggest that they were assessed too much for 2003 and 2004.

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