BAT may Face Shareholder Lawsuits Due to Reynolds' $3.15 Billion Write-Down

Regulations by 2FIRSTS.ai
Jan.30.2024
BAT may Face Shareholder Lawsuits Due to Reynolds' $3.15 Billion Write-Down
BAT faces multiple shareholder lawsuits as a result of a $3.15 billion write-down of Reynolds Tobacco's iconic traditional cigarette brand.

According to a report by journalnow on January 29th, British American Tobacco (BAT) may face multiple shareholder lawsuits due to a $31.5 billion impairment on the iconic traditional cigarette brand of Reynolds Tobacco Company.

 

This write-down has triggered responses from at least five law firms, who are actively seeking potential lead plaintiffs. These investors allege that BAT made false statements and failed to disclose the risks associated with the write-down of high-end American cigarette brands.

 

In early December last year, BAT disclosed the devaluation of brands such as Xin Gang, Luo Tu, Beiermo, and American Natural Spirit, changing their value status from "indefinite" to "limited". As a result, the value lifespan of these four brands shifted from "permanent" to approximately 30 years, meaning until 2054.

 

At least five law firms are currently seeking potential lead plaintiffs for lawsuits that share a commonality: BAT failed to adequately disclose the risks it faced, leading to a near 9% drop in stock prices for investors after the devaluation announcement on December 6th.

 

Tadeu Marocco, CEO of BAT, mentioned BAT's vision of creating a "smoke-free world" and the impact of current macroeconomic obstacles on the combustible tobacco industry in the United States while explaining the impairment decision.

 

This devaluation is a clear indication of concerns over the rapid decline in traditional cigarette consumption in the United States. According to the data from the Centers for Disease Control and Prevention, approximately 11.5% of American adults were identified as smokers in 2021, marking a decrease from 20.9% in 2005.

 

Investor concerns indicate the pressure faced by BAT in building a strategy for smokeless nicotine and tobacco products. The executive changes at Reynolds Company have intensified the pressure for improving the performance of their traditional cigarette portfolio.

 

During the first half of the 2023 fiscal year, at the financial report briefing, Marloko clearly stated, "We are disappointed with the performance of our traditional cigarettes in the United States. Sustaining value creation in combustible products is crucial for our multi-category strategy in the US.

 

The potential litigation period for purchasers of publicly traded securities of BAT extends from February 9th to December 6th. This lawsuit will have implications for BAT and its current and former executives, potentially making them defendants in the litigation.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Korean component maker ITM Semiconductor says Indonesia unit starts e-cigarette device output as related Q1 revenue rises 55.4%
Korean component maker ITM Semiconductor says Indonesia unit starts e-cigarette device output as related Q1 revenue rises 55.4%
South Korea’s KOSDAQ-listed electronics-component maker ITM Semiconductor said its Indonesia subsidiary has begun full-scale mass production of e-cigarette devices, with first-quarter revenue from the business rising 55.4% year on year to 42.1 billion won, Maeil Business Newspaper reported.
Jul.08
Alaska Warns 1,500 Tobacco Retailers Over Unauthorized Vapes and Nicotine Pouches
Alaska Warns 1,500 Tobacco Retailers Over Unauthorized Vapes and Nicotine Pouches
Alaska Attorney General Stephen J. Cox has sent notices to more than 1,500 tobacco retailers and distributors warning them against selling vape and nicotine pouch products that lack authorization from the U.S. Food and Drug Administration (FDA). According to the Alaska Department of Law, businesses were advised to verify products against FDA authorization databases and avoid selling unauthorized nicotine products. The action highlights how state-level enforcement is increasingly extending federal product authorization requirements to retail channels.
Jul.24
UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
British e-liquid manufacturer Riot Labs has introduced a fictional “candidate” called Riot Man around the Clacton parliamentary by-election, seeking to mobilize consumers and retailers against parts of the UK government’s proposed restrictions on vape packaging, device appearance and retail displays. Riot Man is not listed as an official candidate.
Aug.12
Product | Summo 150K Introduces Refillable Design With Up to 150,000 Puffs, Exploring a New High-Capacity Vape Format
Product | Summo 150K Introduces Refillable Design With Up to 150,000 Puffs, Exploring a New High-Capacity Vape Format
Summo has introduced the Summo 150K Refillable Disposable Vape, entering the ultra-high-puff vape segment with a claimed capacity of up to 150,000 puffs. The device combines a 40ml dual e-liquid system, transparent tank design, dual mesh coils and a 900mAh rechargeable battery, using a refillable structure to differentiate itself from conventional disposable vapes. The product appeared on overseas online retail channels including Vapesourcing and VapeBarTime between late June and early July 2026.
Jul.22
After Apple Business Decline, South Korea’s ITM Semiconductor Expands KT&G Vape Supply Chain as Vape Revenue Rises 24.8%
After Apple Business Decline, South Korea’s ITM Semiconductor Expands KT&G Vape Supply Chain as Vape Revenue Rises 24.8%
South Korean electronics component supplier ITM Semiconductor is reshaping its business portfolio after a decline in Apple-related protection circuit business, expanding its supply of vape devices and cartridges to KT&G. According to News1 on August 18, 2026, ITM’s vape-related revenue rose 24.8% year on year to 75.5 billion won in the first half of 2026. The company began mass production of vape devices at its Cikarang, Indonesia facility in January 2026, strengthening export manufacturing capacity. Meanwhile, Samsung-related protection circuit sales continued to grow, providing support during the transition.
Aug.20
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
Product | SnowPlus Launches Nicotine-Free DASH in South Korea, Localising an Established Disposable Platform
SnowPlus has introduced a nicotine-free version of DASH in South Korea, adapting an existing overseas disposable platform for the local market. The Korean version retains the series’ flat duckbill-style mouthpiece, ceramic heating architecture and disposable form factor while reducing nicotine content to 0%. By comparison, the overseas DASH 4000 platform typically features 7.5ml of prefilled e-liquid, up to 4,000 puffs and a 530mAh rechargeable battery, with nicotine-containing variants available in some markets. The product update centers on formulation localisation rather than a new hardware generation.
Aug.31