Washington State

Office of the Attorney General

Attorney General

Bob Ferguson


Olympia - August 24, 2001 - A lawsuit filed in February by the Attorney General's Office against a Washington tobacco company was settled today with the company agreeing to make payments into an escrow account based on the amount of cigarettes it sells in the state.

The company, 3B Holdings, manufactures and sells a roll-your-own tobacco product called Sixty 1. Washington law requires such cigarette manufacturers to either sign the Master Settlement Agreement reached with other major tobacco companies in 1998, or pay into an escrow account approximately one penny per cigarette sold within Washington.

3B Holdings has not joined the Master Settlement Agreement, so under the law it must make the escrow payments.

Under today's settlement with 3B Holdings, filed in Thurston County Superior Court, the company agreed to make escrow payments totaling $71,000 for cigarette sales in 1999 and 2000. The agreement also provides that a $49,000 penalty imposed for failure to make the 1999 payment will be suspended for a five-year period to ensure future compliance with state laws.