R.J. Reynolds pays $2.2 billion to states

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But the cigarette maker added it put $431 million into an escrow account for "disputed payments." The settlement allows companies to take this approach if the accord causes them to lose market share to rivals that did not sign on.

NEW YORK (Reuters) - R.J. Reynolds Tobacco Company <RAI.N>> on Wednesday said it paid U.S. states $2.251 billion under the master settlement agreement that ended their lawsuits over smokers' medical bills.

But the cigarette maker added it put $431 million into an escrow account for "disputed payments." The settlement allows companies to take this approach if the accord causes them to lose market share to rivals that did not sign on.

(Reporting by Joan Gralla, Editing by Chizu Nomiyama)