A U.S. plaintiff has filed suit against Chinese vape manufacturer Shenzhen IVPS Technology Co. Ltd. in the U.S. District Court for the Eastern District of North Carolina, alleging harms linked to the company’s marketing and sales of e-cigarettes in North Carolina. The manufacturer is seeking to dismiss the case, arguing that its operations do not establish sufficient ties to the state for the court to assert jurisdiction. The plaintiff maintains that the company’s active promotion and sale of its products in North Carolina bring it squarely within the court’s reach.
Tag: court
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Bangladesh Court Gives Authorities 30 Days to Close Hookah Lounges
Yesterday (March 3), Bangladesh’s High Court ordered authorities to shut down illegal shisha and hookah lounges nationwide within 30 days and issued a statement, questioning why failure to act against such establishments should not be declared unlawful. The bench of Justices Razik-Al-Jalil and Md Anowarul Islam directed secretaries of the home and health ministries, as well as the heads of the Department of Narcotics Control, Rapid Action Battalion, Dhaka Metropolitan Police, and Dhaka North and South city corporations to respond.
The order followed a public interest writ filed by Supreme Court lawyer SM Zulfiqure Ali Junu, who argued that many lounges operate under the guise of cafés and restaurants without lawful authority, posing serious public health risks. The petition cited violations of the Smoking and Tobacco Products Usage (Control) Act, 2005 (Amended 2013) and the Narcotics Control Act, 2018, alleging that authorities had failed to act despite reports of minors accessing shisha.
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Court Certifies Juul Direct Purchaser Class in Altria Antitrust Case
A U.S. federal court certified a class of direct purchasers of Juul Labs, Inc. products in California, allowing claims against Altria Group, Inc. over its 2018 $12.8 billion investment for a 35% stake in Juul, according to Law 360. Judge William H. Orrick cited “common, predominant questions” and a strong inference of class-wide impact, finding class resolution preferable to individual suits, while purchasers may opt out. Plaintiffs allege the investment led Altria to exit the e-cigarette market, reduce product variety, and raise prices.
Law 360 said the direct purchaser class covers those buying Juul products from October 5, 2018, to the present. Judge Orrick rejected arguments that separate contracts and pricing arrangements make named purchasers atypical, noting claims are typical across the class and representatives are adequately motivated. An imperfect understanding of class membership does not undermine adequacy so long as representatives understand the claims and responsibilities.
Indirect purchaser and reseller classes were also certified, though plaintiffs from Arkansas, South Carolina, Tennessee, and Virginia were excluded due to state law restrictions. The indirect purchaser class covers Juul pod purchases for personal use from October 25, 2018, to March 29, 2024, and the indirect reseller class covers purchases for resale from December 1, 2018, to March 31, 2025. The FTC had previously challenged Altria’s Juul stake but dropped its case in 2023 after the company fully unwound its investment.
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Fifth Circuit Affirms FDA’s Vape Rule
The U.S. Court of Appeals for the Fifth Circuit upheld a 2021 rule issued by the U.S. Food and Drug Administration requiring manufacturers seeking premarket tobacco product authorization to investigate and disclose health effects data, according to Law 360. In a unanimous opinion, the three-judge panel found the agency complied with the Regulatory Flexibility Act by reasonably certifying that the rule would not have a significant economic impact on a substantial number of small entities, affirming a February 2025 summary judgment in FDA’s favor.
Plaintiffs, including e-liquid manufacturers and the United States Vaping Association, argued the FDA improperly relied on economic analysis from its 2016 deeming rule and failed to consider less burdensome alternatives. The court rejected those claims, holding that the 2016 assessment provided an adequate factual basis and that key requirements — such as submitting all known health-risk information — are mandated by the Tobacco Control Act and cannot be waived by regulation. The decision leaves the 2021 PMTA rule intact in Kealani Distribution LLC et al. v. FDA.
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OK Rules Replacing Tobacco Trust Members Unconstitutional
The Oklahoma Supreme Court ruled that a 2025 state law allowing elected officials to replace members of the Tobacco Settlement Endowment Trust (TSET) board at will is unconstitutional, affirming the voter-approved independence of the trust and safeguarding its authority to allocate tobacco settlement funds free from political interference. Established by constitutional amendment in 2000, TSET manages most of Oklahoma’s payments from the 1998 Master Settlement Agreement. The court’s decision preserves the original intent of voters to insulate TSET from political influence and ensures the continuation of its public health mission, a position supported by leading medical and public health organizations that filed an amicus brief backing the trust.
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Altria Pushes to End Juul’s ITC Patent Investigation
NJOY and Altria Group are asking a federal judge in Virginia to immediately halt a U.S. International Trade Commission investigation triggered by Juul Labs’ nicotine-salt patent claims, arguing the ITC lacks constitutional authority to hear the case. In a reply filed Tuesday (January 6) in the U.S. District Court for the Eastern District of Virginia, the companies urged the court to grant summary judgment and permanently enjoin the ITC proceeding rather than allow it to continue while constitutional challenges are litigated.
The filing argues the investigation violates the Appointments Clause, improperly insulates ITC administrative law judges through double for-cause removal protections, and infringes Article III limits, citing the Supreme Court’s decision in SEC v. Jarkesy. Altria and NJOY contend they are suffering irreparable harm by being subjected to an allegedly unconstitutional process, noting the ITC has scheduled an evidentiary hearing for April 22, 2026.
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Irish Retailers Lose Fight Against ‘Irrational’ License Fees
A retailers’ group failed in a High Court challenge against Ireland’s new licensing fees of up to €1,800 for selling tobacco and nicotine products. Justice Rory Mulcahy ruled that the former health minister acted lawfully in setting the fees under the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023, finding the charges were justified on public health grounds and not arbitrary.
The new regime, effective from February, replaces a one-off €50 registration fee with renewable annual fees of €1,800 for tobacco and nicotine products, €1,000 for tobacco only, or €800 for nicotine products only. The court rejected claims that the fees were irrational or disproportionately harmful to small retailers, noting that discouraging tobacco sales would not make the regulations unlawful.
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RJR Seeks Dismissal of ‘Carbon Neutral’ Vape Lawsuit
R.J. Reynolds Vapor Co. has asked a California federal judge to dismiss a proposed class-action lawsuit accusing the company of misleading consumers by advertising its Vuse e-cigarettes as “the world’s first carbon neutral vape brand.” In its filing with the U.S. District Court for the Northern District of California, the company said its statements were backed by independent third-party certifications from Verra and Vertis Environmental Finance Ltd., insisting that its carbon-neutral claims were accurate, verified, and aligned with recognized environmental standards. R.J. Reynolds argued that it did not exaggerate its emissions data and said plaintiffs failed to prove any economic loss tied to the marketing claim.
According to ClassAction.org, the lawsuit, filed on May 28, 2025, seeks $5 million in damages and alleges that British American Tobacco (BAT) and its subsidiary R.J. Reynolds misled consumers with a deceptive sustainability campaign. Plaintiffs argue that the “carbon neutral” label relied on flawed carbon offset projects, including Uruguay’s Guanaré Forest Plantations Project, which an independent review found had no measurable climate benefit. The complaint claims the company continued to use the “carbon neutral” slogan even after learning of issues with the offset program, calling the campaign a marketing strategy aimed at enhancing brand loyalty rather than environmental responsibility.
A BAT spokesperson previously said that Vuse’s carbon-neutral status was independently verified in 2021 and that related marketing materials were discontinued by the end of 2023, according to Law360.
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Altria Drops Suit as Elf Bar Exits California Market
Elf Bar’s parent company, iMiracle, agreed to cease sales of flavored disposable vapes in California, effectively ending a protracted legal battle with Altria’s e-cigarette unit NJOY. Under a joint motion, iMiracle will accept a permanent injunction preventing it from selling or shipping flavored vape products into California and will also refrain from shipping to other jurisdictions if the products are likely destined for California.
The lawsuit, initially filed in late 2023, alleged that iMiracle’s flavored products competed unfairly with NJOY’s FDA-authorized devices and violated California’s flavored tobacco ban and federal regulations. Most defendants in the original suit were dropped; iMiracle remained the principal target.
Though iMiracle denies liability, it agreed that violation of the injunction would be treated as contempt of court. The settlement is conditioned on California maintaining its current flavor ban; if the law is repealed or amended substantially, the injunction may no longer apply.
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U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement
A New York bankruptcy judge yesterday (August 26) approved U.S. recognition of Imperial Tobacco Canada Ltd.’s restructuring plan, a key step in a landmark C$32.5 billion (US$23.6 billion) settlement resolving decades of Canadian tobacco litigation. Judge John P. Mastando III granted Chapter 15 approval without objection, clearing the way for the settlement, one of the largest restructurings in Canadian history, to take effect across both jurisdictions.
The deal, approved by an Ontario court in March, involves Imperial, JTI-Macdonald Corp., and Rothmans Benson & Hedges Inc. It will be funded over 20 years, beginning with a C$12 billion (US$8.7 billion) upfront payment, followed by profit-sharing contributions.
The agreement resolves more than a trillion Canadian dollars in claims from class actions and provincial governments over smoking-related health costs.