Tobacco: Lawsuits

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December 2023

Philip Morris International (PMI) wins the investor’s appeal to the Sept 2021 court decision that freed PMI of all securities fraud claims1. PMI shareholders failed to prove that the company made false statements about: (1) the compliance of IQOS clinical studies with the international scientific standards and the interpretation of scientific data presented to the US FDA; (2) the projected heated tobacco sales in Japan.

While dismissing the securities fraud class action, the Court concluded that

– statements by PMI and its executives that the IQOS studies were “rigorous,” “the best science” and “very advanced” are inactionable puffery

– PMI’s interpretation of scientific data is (later) proven to be inherently reasonable via the US FDA’s MRTP authorization

– optimistic remarks about the sales performance in Japan were allowable forward-looking statements.

Pomerantz LLP (currently investigating BAT) and Robbins Geller Rudman & Dowd LLP represented the lead investors in the securities fraud case.

December 2023

A dozen of law firms announced that, on behalf of BAT investors, they are investigating whether BAT and its executives have engaged in securities fraud or other unlawful business practices in violation to the federal securities laws. The announcements followed BAT’s Interim Business Update on Dec 6 and disclosure of a £25Bn impairment charge on the carrying value of some US combustibles brands – resulting in BAT shares to collapse 8.5% on the day of the update.

References:

  1. Philip Morris International Wins Stock Suit Appeal Over IQOS ↩︎

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