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Judge: ITG is liable for Florida tobacco settlement payments

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(AP Photo/Jeff Chiu, File)

DOVER, Del. (AP) — Cigarette manufacturer ITG Brands assumed liability for tobacco settlement payments to the state of Florida when it acquired four brands from Reynolds American in 2015, a Delaware judge has ruled.

Vice Chancellor Lori Will ruled Friday that, as a result, ITG must compensate Reynolds American for losses due, granting summary judgment in favor of Reynolds.

Reynolds sold the Kool, Winston, Salem and Maverick brands to ITG in 2014 to gain federal regulators’ approval of its acquisition of Lorillard Inc.

Before the sale closed, Reynolds American affiliate R.J. Reynolds Tobacco Co. was making payments under a preexisting settlement agreement with Florida for reimbursement of smoking-related health care costs. After closing, Reynolds stopped making payments for the four brands it no longer owned.

The asset purchase agreement required ITG to use reasonable best efforts to join the Florida settlement and make annual payments to Florida for sales of the brands it acquired from Reynolds. ITG has yet to join the settlement agreement with Florida or make any payments.

Florida sued Reynolds and ITG and obtained a judgment requiring Reynolds to continue making payments based on ITG’s brands, unless and until ITG joined the Florida settlement agreement.

“That judgment on Reynolds amounts to over $170 million to date and tens of millions of dollars more each year into perpetuity,” Will noted. The “unambiguous terms” of the asset purchase agreement support Reynold’s arguments that ITG agreed to assume the liability imposed by the Florida judgment and must indemnify Reynolds, she concluded.

The ruling comes in a long-running legal battle between Reynolds and ITG, both based in North Carolina. In 2017, a different Court of Chancery judge concluded that ITG’s obligation to use its best efforts to try to reach a tobacco settlement agreement with Florida did not end when the sale closed.

Last year, Reynolds asked ITG to compensate Reynolds Tobacco for what it had paid and will pay due to the Florida judgment, but ITG refused. In subsequent litigation, ITG argued unsuccessfully that it had fulfilled its reasonable best efforts obligation and was not required to indemnify Reynolds for the payment liability to Florida.

Last year, in the settlement of a lawsuit brought by the state of Minnesota, ITG agreed that it had assumed obligations under that state’s tobacco settlement agreement to make payments for sales of the four brands it acquired from Reynolds. ITG agreed to make payments to Minnesota for 2021 and all future years, while payment liabilities for the period from 2015 to 2020 were split between ITG and Reynolds.

Crimes and Courts

Attorney General Uthmeier: Central Florida Woman Charged in Child Sexual Abuse Material Case

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TALLAHASSEE, Fla. (FNN) — Florida Attorney General James Uthmeier announced that the Office of Statewide Prosecution has charged a Central Florida woman with multiple felony offenses involving the sexual abuse of a child and the creation and distribution of child sexual abuse material (CSAM).

Taylor Michelle Dorsey, 33, of Ocoee, faces eight felony counts, including sexual abuse of a child over the age of 12 and several charges related to the production, possession, and promotion of CSAM.

“The details in this case are gut-wrenching, and there is zero place for this kind of vile behavior in Florida,” said Attorney General Uthmeier. “I am confident in our statewide prosecutors’ ability to fight for the maximum penalty that fits these heinous crimes against children.”

Investigation and Arrest

The investigation was conducted by the Florida Department of Law Enforcement (FDLE) following a cyber tip from the National Center for Missing and Exploited Children. The tip originated from Yahoo, which reported that Dorsey had uploaded multiple files containing child sexual abuse material.

According to investigators, Dorsey sexually abused the victim, produced the illegal material, and actively shared it with an inmate in federal prison who is serving time for sexual abuse of a child and possession of child pornography.

On Dec. 10, 2025, law enforcement executed a search warrant at Dorsey’s residence, where she was arrested without incident.

Charges Filed

Dorsey is charged with the following offenses:

  • Promote Sexual Performance of a Child

  • Lewd and Lascivious Molestation

  • Child Abuse

  • Child Neglect

  • Possession of Child Pornography (four counts)

She is currently being held in the Orange County Jail without bond.

Prosecution and Ongoing Case

The case will be prosecuted in the Ninth Judicial Circuit by Assistant Statewide Prosecutor Lauryn Day. Officials stated the investigation remains ongoing, and additional charges may be filed as evidence continues to be reviewed.

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Crimes and Courts

Attorney Ben Crump Announces Settlement Between Universal and Family of Kevin Rodriguez Zavala

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ORLANDO, Fla. (FNN) — The family of Kevin Rodriguez Zavala and Universal have reached a confidential resolution, according to a statement released by nationally renowned civil rights and personal injury attorney Ben Crump.

Crump, speaking on behalf of the Rodriguez Zavala family, confirmed that the matter has been resolved amicably. The terms of the agreement were not disclosed.

“The family of Kevin Rodriguez Zavala and Universal have reached an amicable resolution in this matter. The terms are confidential,” Crump said. “The family is grateful for the community’s support and asks for privacy at this time.”

No further details were provided.

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Crimes and Courts

Ex-FBI Employee Claims Dismissal for LGBTQ+ Flag Violated Constitutional Rights

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WASHINGTON (FNN) — A longtime FBI employee who was nearing completion of special agent training was dismissed last month for displaying a Pride flag at his workspace, according to a federal lawsuit filed Wednesday.

David Maltinsky, who worked for the FBI for 16 years, had completed 16 of 19 weeks of agent training at Quantico when he said he was handed a termination letter from FBI Director Kash Patel and told he was being dismissed for the “inappropriate display of political signage.” The suit asserts that the flag, previously flown outside the Los Angeles field office during Pride Month in 2021, was displayed inside with prior approval from supervisors.

Background and Training Dismissal

Maltinsky previously served as an intelligence specialist in the Los Angeles field office and was pursuing a long-held goal of becoming a special agent. The Progress Pride flag — which includes rainbow stripes and additional colors to represent LGBTQ+ individuals and communities of color — had been gifted to him after being taken down from its official display at the field office.

The lawsuit states that Maltinsky was a supporter of diversity efforts within the bureau. These efforts were halted under a January executive order from President Donald Trump that eliminated federal diversity, equity, and inclusion programs.

Legal Claims and Government Response

The suit names Patel, the FBI, Attorney General Pam Bondi, and the Justice Department as defendants. It seeks Maltinsky’s reinstatement, a declaration that his dismissal violated First Amendment rights to free speech and Fifth Amendment guarantees of equal protection.

The FBI and Justice Department declined to comment on pending litigation.

Maltinsky’s attorney, Christopher M. Mattei, called the firing unconstitutional, saying, “This case is about far more than one man’s career — it’s about whether the government can punish Americans simply for saying who they are.”

Broader Personnel Disputes at the Bureau

The filing comes amid other lawsuits brought by FBI officials alleging improper personnel actions taken in President Trump’s second term. In September, three former senior FBI officials claimed they were dismissed as part of a “campaign of retribution” allegedly driven by political pressure.

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