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HELENA (AP) - Montana and dozens of other states announced a settlement Thursday with Santa Fe Natural Tobacco Co. after the company violated a 1998 multistate settlement against the nation's largest tobacco companies by distributing brand name merchandise.

The company, based in Santa Fe, N.M., distributed decorative tin signs to consumers that featured its ``Natural American Spirit'' cigarettes brand name. Under the 1998 settlement, distribution of merchandise bearing the brand name of cigarette companies is prohibited.

The New Mexico attorney general's office said that under the new settlement, Santa Fe Natural Tobacco agrees not to distribute tin signs, toys, games, clothing or a slew of other items bearing the company's brand name.

Santa Fe Natural Tobacco also agrees to pay a penalty of $250 for every future violation of the agreement.

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