The state yesterday filed a lawsuit in Circuit Court that disputes an assessment that could lead to major tobacco companies paying the state $6.7 million less for 2003 as part of a 1998 settlement.

The state sued the tobacco companies seeking reimbursement for Medicare spending on tobacco-related illnesses, but reached a settlement along with 45 other states.

Hawai'i's share was estimated to be more than $1 billion over 25 years.

The lawsuit filed yesterday said the state's share under the settlement is about $42 million before adjustments. For 2003, the tobacco companies contend the annual amount should be reduced by as much as $6.7 million, the suit said.

The suit is against the major tobacco companies, including Philip Morris USA and R.J. Reynolds Tobacco Co.