Gansler acts against tobacco

Published



The Maryland Attorney General?s office filed two civil actions against a North Carolina-based cigarette manufacturer Wednesday, alleging the company?s owner deliberately shuffled his operations to avoid paying $66 million into a fund established in a 1990s settlement between tobacco companies and state governments.

The office filed a petition in Baltimore Circuit Court seeking to strip Cutting Edge Inc. ? which is incorporated in Maryland but operates in North Carolina ? of its corporate charter under Maryland law. The other filing, an enforcement action, says owner Calvin Phelps is using Cutting Edge as a back door into the Master Settlement Agreement for his other tobacco company, Alternative Brands.

Full midterm coverage.Deeper analysis.

Get unlimited access to Washington Examiner's reporting, expert analysis, and coverage of the midterm elections.

Get Unlimited Access

Cancel anytime.