One more chapter of the tobacco litigation unfolds. The AP's Stephanie Stoughton reports that cigarette maker RJR, in the face of a looming payment deadline in the tobacco settlement, has refused to pay the full amount mandated.

RJR, Lorillard, and Philip Morris have collectively argued that the $6.5 billion award should be cut $1.2 billion, under a clause of the settlement allowing such reductions if the companies in the pact lose market share to those outside the pact. Philip Morris made its full scheduled payment, of $3.4 billion.