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NEW YORK - Vector Group Ltd., the parent of cigarette maker Liggett Group, is planning to sue a group of state attorneys general for violating a settlement with the industry by being too lenient toward another tobacco company.

Miami-based Vector alleges the attorneys general extended favorable financial terms to privately held Vibo Corp., another Miami-based cigarette company, when it earlier this month joined the tobacco industry's landmark 1998 settlement with the states, the so-called Master Settlement Agreement.

According to Vector, Vibo, which does business as General Tobacco, received the favorable financial treatment without the authorization of the other tobacco companies that already signed on to the agreement.

General Tobacco sells value-priced cigarette brands such as GT One, Bronco and Silver.

Vector President and Chief Executive Ronald Bernstein said Monday that Vector has notified the attorneys general that it plans to take legal action in 30 days.

"We believe our consent was required for them (General Tobacco) to come in under amended terms," Bernstein said. "The MSA is an agreement that is the foundation of this industry today, and we don't take it lightly when our rights under the agreement are being violated."

A spokeswoman from the National Association of Attorneys General couldn't immediately comment on Vector's allegations.

A spokesman from General Tobacco wasn't immediately available.

The Master Settlement Agreement was signed by 46 states and several major tobacco companies in 1998. Since then, more than 40 other companies have joined the multibillion dollar agreement.

Under the agreement, tobacco companies make required payments and agree to a wide range of restrictions, including those governing the way the companies can promote their products.

Until General Tobacco joined the tobacco settlement, it had been the largest tobacco product manufacturer not participating in the agreement.

General Tobacco is expected to make an immediate payment of $78 million to all states in the MSA. Over the next 10 years, the settlement with the company is expected to be worth $1.7 billion.

Vector encourages nonparticipating manufacturers to join the MSA, but the companies should join under the terms of the agreement, Bernstein said.

Among other things, Vector alleges that General Tobacco is not being expected to make back payments in a "reasonable period" of time. In addition, the company is being charged a lower interest payment than is required under the agreement.

"By granting General Tobacco special treatment, the attorneys general are depriving their states of funds properly due to them and are providing General Tobacco with an unwarranted and improper benefit," Bernstein said.

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