R.J. Reynolds Fined for Cigarette Giveaways
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R.J. Reynolds Tobacco Holdings Inc. was ordered by a judge to pay a $14.8-million fine for handing out free packs of cigarettes at an event where kids were present, California’s attorney general said.
Los Angeles County Superior Court Judge Conrad Aragon’s fine is the largest against a tobacco company for violating California’s law banning tobacco product giveaways on public grounds where minors might be in attendance, according to Atty. Gen. Bill Lockyer’s office. R.J. Reynolds said it would appeal the ruling.
The tobacco firm said it leased space to set up enclosed booths at events that were restricted to people age 21 and over who presented identification to security guards. Reynolds also claims the state was aware of the promotion at the time.
The tobacco company’s shares, which hit a 52-week high of $71.82 on Thursday, rose $1.05 to $71.35 on the New York Stock Exchange.
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