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  • Judge Rules ITG Owes Reynolds Full $251 Million

    Judge Rules ITG Owes Reynolds Full $251 Million

    Yesterday, a Delaware judge ordered ITG Brands to reimburse Reynolds American the full $251.5 million it paid to the state of Florida as part of a settlement agreement that pre-dated ITG’s acquisition of four cigarette brands a decade ago. ITG was attempting to cut the bill to $130 million by claiming Reynolds saved $112 million because ITG did not join the Florida settlement.

    “The payments Reynolds made to Florida on behalf of ITG-owned brands aren’t excluded under the companies’ purchase agreement, and Reynolds is owed reimbursement of that amount to restore it to the position it held before ITG failed to assume that liability,” Vice Chancellor Lori W. Will of the Delaware Chancery Court wrote.

    In 1997, Reynolds settled with Florida to resolve claims cigarette makers misrepresented the risks associated with smoking. In 2015, RJR sold its Kool, Maverick, Salem, and Winston brands to ITG for $7.1 billion. Florida’s settlement obligations assumingly shifted to ITG, but ITG didn’t sign on, leaving Reynolds to pay the full sum in 2023.

    “ITG was not found liable for failing to join the Florida settlement agreement,” Will said. “I did not hold that it breached any such obligation in the asset purchase agreement. ITG was, instead, found liable for failing to assume the liability imposed on Reynolds by the Florida court.

    “There is a fundamental problem with ITG’s argument. It centers the wrong harm. ITG presumes that the relevant breach is its failure to join the Florida settlement agreement. But I did not find that ITG breached any such obligation. I held only that it failed to assume the Florida judgment liability under [Asset Purchase Agreement] Section 2.01(c)(iv).”

  • Dutch Urge EU to Get Tough on Vapes

    Dutch Urge EU to Get Tough on Vapes

    Dutch junior health minister Vincent Karremans told the European Commission that the decision to delay legislation on new nicotine products is “harmful” in a letter sent to EU health chief Olivér Várhelyi after the commission decided to exclude tobacco-related legislation from its 2025 work program. Karremans urged him to take “decisive” action to protect young people’s health.

    The Dutch also want the EU to establish a legal framework for cross-border distance sales of new tobacco products, arguing that these allow consumers to bypass national restrictions. According to European news website Euractiv, the Dutch health ministry is urging Brussels to impose “comprehensive restrictions on flavors, maximum nicotine levels, and plain packaging” on e-cigarettes and other nicotine products

    In 2023, Dutch MPs voted in favor of a motion by the Democrats 66 party to introduce a tax on e-cigarettes and vapes, although officials say this is unlikely to happen before 2029. Flavored vaping liquids have already been banned in the Netherlands, yet the country is still struggling with a surge in vaping among teenagers, who, health ministers say, are attracted to the flavors.

  • N.C. Task Force Wants to Raise Tobacco Age to 21

    N.C. Task Force Wants to Raise Tobacco Age to 21

    North Carolina’s Child Fatality Task Force submitted a report to the governor and the legislature for 2025 suggesting the state raise the legal age for tobacco purchases from 18 to 21 to align with federal laws, and make licenses required for tobacco retailers. The report notes that North Carolina is one of seven states to not have raised the age for purchases to 21 and is one of nine states to not require a license or permit for tobacco retailers. 

    The task force also recommended prohibiting the sale of intoxicating cannabis or hemp products to people younger than 21, requiring child-resistant packaging and package warnings, and requiring retailers to obtain permits.

    “Last year, the legislature was close to passing a law that would have set a minimum age of 21 for buying edibles containing hemp CBD,” Lynn Bonner wrote on NC Newsline. “The bill was derailed when the Senate added legalization of medical marijuana to it.  While the Senate passed the measure, it stalled in the House.”

  • Taiwan Bill to Strengthen E-Cig Regs

    Taiwan Bill to Strengthen E-Cig Regs

    Today, Taiwan’s  Health Promotion Administration (HPA) proposed an amendment to the Tobacco Hazards Prevention Act (THP) to strengthen regulations against e-cigarettes and heated tobacco products. The proposal allows the direct confiscation and destruction of these products and enhances online supervision, Tobacco Control Division head Lo Su-ying said.

    The THP was amended in 2023 to prohibit the manufacture, import, sale, display, advertisement, and use of e-cigarettes and unapproved heated tobacco products. Since then, more than 600,000 fines totaling $11.2 million have been issued, however, currently, the contraband items cannot be confiscated but are instead returned to the owner. The proposed amendment would fill in this loophole, facilitating the accelerated confiscation and destruction of e-cigarettes and heated tobacco products, Lo said.

    The new proposal would also stipulate that internet service providers must remove illegal tobacco advertisements and restrict access to related content. 

  • Study: E-Cigs Elevate Cancer-Causing Pathways

    Study: E-Cigs Elevate Cancer-Causing Pathways

    A new study from researchers at the University of Rochester Medical Center published in Scientific Reports suggests an elevation of carcinogenic cellular signaling pathways with e-cigarette users when compared to non-users. Dongmei Li, the director of Translational Science Statistical Support Services for the Clinical and Translational Science Institute, said little is known about how exclusive e-cigarette use affects exosomal microRNAs, which regulate genes that influence cancer-causing pathways.

    By comparing exosomal microRNA profiles between exclusive e-cigarette users and non-users, the researchers identified several exosomal microRNAs that are upregulated—more active than normal—in exclusive e-cigarette users. These overactive microRNAs are involved in cancer pathways, suggesting an elevation of carcinogenic cellular signaling pathways in exclusive e-cigarette users.

    “Our results contribute significantly to understanding the potential health risks of e-cigarette use and should be considered by medical professionals and the public to protect public health,” Li said. “Our study results will spark further investigations into the impact of exclusive e-cigarette use on plasma exosomal miRNAs and other biomarkers related to cancer risks, which will help us better understand the toxicity of e-cigarette use.”

    This study was funded by an R21 grant from the National Institutes of Health

  • Plasencia Cigars Tabs New CEO

    Plasencia Cigars Tabs New CEO

    Plasencia Cigars announced that Edward “Ed” Bello will become its chief executive officer effective April 1, at which time he will work with current CEO Jim Young for three months to ensure a smooth transition. Young will then continue as an advisor and board member.

    Most recently Bello was the CMO of Catalyst Spirits, a start-up brand incubator. Prior to that he spent nearly 15 years with Diageo in the alcoholic beverage industry and 13 years at Procter & Gamble.

    “I am delighted to join Plasencia Cigars and am excited to help the company fulfill the amazing future that the Plasencia brand clearly possesses. I am humbled that the Plasencia family place their trust in me to lead this effort and the amazing team already in place. I look forward to working closely with the family, with Jim and with the team to fulfill the promise that the Plasencia brand clearly holds.” 

    Since 1865, the Plasencia family has been making cigars and growing first-class tobacco, today harvesting more than 4,000 acres in Nicaragua and Honduras.

  • Charlie’s Holdings Receives PMTA Acceptance Filings for 11 Products

    Charlie’s Holdings Receives PMTA Acceptance Filings for 11 Products

    Charlie’s Holdings, Inc. announced today that it received acceptance filings for 11 of its best-selling flavored PACHA Disposables brands from the Center for Tobacco Products of the U.S. Food and Drug Administration. Charlie’s has received more than 700 acceptance filings for its PMTA submissions.

    The FDA has received PMTAs for nearly 27 million electronic nicotine delivery system products and has made determinations on more than 99% of the applications. However, the FDA has authorized fewer than three dozen tobacco- and menthol-flavored e-cigarette products and devices. To date, no company in the world has received an FDA marketing order for a flavored (non-tobacco or non-menthol) disposable vape product.

  • PMI Looking to Sell Off Cigar Biz

    PMI Looking to Sell Off Cigar Biz

    The Economic Times reported today (March 3) that Philip Morris International Inc. is exploring a potential sale of its cigar business in the United States. People familiar with the matter said the company is working with advisers to gauge buyer interest as it seeks more than $1 billion for the asset as the tobacco maker continues its shift toward smoke-free products.

    Although still known for its cigarette brands, PMI is trying to reduce its reliance on traditional tobacco-based products. Currently, 40% of the company’s sales come from smoke-free products, a number expected to reach 67% in the next five years.

    “The cigar business was part of Swedish Match AB, which Philip Morris acquired in a $16 billion deal that was completed in 2023,” Carmen Arroyo wrote for Bloomberg. “That deal, which added Zyn nicotine pouches to its portfolio, helped propel Philip Morris’s transition away from traditional cigarettes.”

    According to The Economic Times, deliberations on the cigar sale are ongoing and there’s no certainty they’ll lead to a sale, their sources said, asking not to be identified for discussing confidential information.

  • JTI and Others Close to Concluding Canadian Lawsuit

    JTI and Others Close to Concluding Canadian Lawsuit

    JTI-Macdonald Corp. (JTI-MC) announced that last week it, along with co-defendants Imperial Tobacco Canada (ITC), and Rothmans, Benson & Hedges (RBH), filed materials with the Ontario Superior Court of Justice in joint support of plans to settle all pending tobacco-related claims in Canada, subject to proposed amendments being approved by the court.  

    The filings stem from a 2019 class-action lawsuit, where in October 2024 the court-appointed mediator proposed the three companies pay a total of 32.5 billion Canadian dollars to settle all litigation. In January, JTI-MC reached an agreement with the other co-defendants on the terms of allocation of payments that were then filed with the Ontario Superior Court Feb. 27, which now awaits court approval.

    As a result, JTI-MC intends to record a provision for litigation losses related to the payment of the settlement amount as an operating expense in fiscal year 2024, for an adjusting subsequent event.

  • Judge: Calif. Tribe Didn’t Comply with Tobacco Laws

    Judge: Calif. Tribe Didn’t Comply with Tobacco Laws

    A U.S. District Judge said the U.S. Department of Justice did nothing arbitrary or capricious when the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) blocked the Twenty-Nine Palms Band of Mission Indians from shipping cigarettes. Judge Sunshine S. Sykes said Twenty-Nine Palms was fine to sell untaxed cigarettes to other Native nation tribes, but when those cigarettes were then resold to “non-Native nation customers” without collecting California taxes it was a violation of the Prevent All Cigarette Trafficking Act.

    The tribe did not dispute that the cigarettes were resold without being taxed but instead argued that when the ATF initially put it on the non-compliance list it incorrectly listed the sale to Native-nation customers as the reason before changing it to non-Native nation customers.

    “Even if the court were to hold that ATF’s argument that the tribe’s Native nation customers violate the [California Licensing Act] were improper post-hoc legal justifications, ATF’s decision remains on solid ground,” the judge said.

    In its opposition to summary judgment, the tribe said ATF’s logic undercuts tribal sovereignty, forcing tribal nations to be subject to state laws.

    “Subjecting Indian tribes to a state-licensing scheme as a condition of doing business with their own tribal members is simply unconscionable and would violate the most basic inherent sovereign right of tribes to make their own laws and be ruled by them,” the tribe said. “ATF’s failure to consider whether the application of California law as adopted in the decision allows for tribes to conduct on reservation business with their members free of state taxation and regulation was arbitrary and capricious.”