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Tag: lawsuit

  • Reynolds Files Complaint with ITC Over Illicit Products

    Reynolds Files Complaint with ITC Over Illicit Products

    R.J. Reynolds Tobacco Co. and its subsidiaries have filed a complaint with the U.S. International Trade Commission seeking an investigation into alleged unlawful practices by Heaven Gifts International—the company behind Elf Bar and Geek Bar—along with its subsidiaries and nine U.S. distributors. According to Law360, the 247-page complaint accuses the respondents of selling flavored vaping products in jurisdictions where they are banned, selling products not listed in required state directories at the time of sale, and evading state and local excise taxes, conduct Reynolds frames as unfair competition under Section 337 of the Tariff Act and noncompliance with the PACT Act. The ITC has acknowledged receipt of the complaint and opened a public comment process.

    Reynolds argues that the alleged violations have enabled a large, illicit market that has significantly undercut lawful products such as its Vuse brand. The company pointed to FDA data showing that only 39 e-cigarette products and devices are currently authorized for sale in the U.S., including 16 from Reynolds and none from Heaven Gifts or its affiliates. Reynolds is seeking broad remedies, including a general or limited exclusion order blocking imports of the accused products, cease-and-desist orders against the named companies, and the imposition of a bond during the ITC’s 60-day presidential review period.

  • Korea Health Insurance Loses Appeal Against Tobacco Cos.

    Korea Health Insurance Loses Appeal Against Tobacco Cos.

    South Korea’s National Health Insurance Service (NHIS) lost its appeal seeking compensation from major tobacco companies after the Seoul High Court upheld a lower court ruling in favor of KT&G, Philip Morris Korea, and British American Tobacco Korea today (January 15). The court agreed that NHIS lacked legal standing to claim damages, ruling that insurance payouts made to smokers with cancer merely fulfilled statutory obligations and did not constitute a legally protected interest that could support a compensation claim.

    The lawsuit, originally filed in 2014, sought 55.3 billion won ($37.6 million) to recover health insurance costs for smoking-related lung and laryngeal cancer patients, arguing tobacco firms should be held liable for the financial burden imposed on the public health system. Both the lower and appellate courts rejected claims that cigarettes were defectively designed or misleadingly marketed, and found that smoking was not the sole cause of cancer. While acknowledging the growing medical costs linked to smoking—estimated at 3.8 trillion won ($2.6 billion) annually by 2023—the appellate court ordered NHIS to bear appeal costs. NHIS said it plans to take the case to the Supreme Court, framing the issue as one of public health accountability and constitutional social rights.

  • Cresco Says Can’t Have Class-Action if No One Was Harmed

    Cresco Says Can’t Have Class-Action if No One Was Harmed

    Cresco Labs submitted a new filing last week, urging an Illinois federal court to dismiss a proposed consumer class action alleging the company mislabeled certain cannabis vape oils to circumvent state THC potency limits. In its latest filing, the company argued that the lawsuit suffers from “fundamental flaws,” emphasizing that no consumer has claimed to have been harmed by purchasing the products at issue.

    The suit alleges Cresco improperly classified some cannabis oils as concentrates rather than cannabis-infused products, a distinction that carries different THC caps and labeling requirements under Illinois law. Cresco disputes this characterization, saying its products complied with state regulations and that disputes over classification and labeling fall under the authority of regulators, not private plaintiffs.

  • Texas Tobacco Company Sues Manufacturer for Contract Breach

    Texas Tobacco Company Sues Manufacturer for Contract Breach

    Texas-based The Tobacco Company, doing business as Hestia Tobacco, filed a lawsuit Tuesday (January 6) in the U.S. District Court for the Middle District of North Carolina, alleging its former manufacturer breached its supply contract by arbitrarily hiking prices and then urging retailers to pull Hestia’s products from shelves, according to Justia Dockets & Filings.

    In the complaint, Hestia claims that Nasco Products, LLC, violated the parties’ agreement by imposing unjustified price increases and undermining Hestia’s market relationships, harming its sales and business prospects. The suit is brought under diversity jurisdiction and seeks monetary damages for breach of contract, with Hestia demanding a jury trial.

  • Korea Says Tobacco Toll is $30B as Court Ruling Approaches

    Korea Says Tobacco Toll is $30B as Court Ruling Approaches

    South Korea’s long-running lawsuit against tobacco companies is back in focus following new research showing smoking has imposed a major and rising burden on the national health insurance system. A study released January 5 by the National Health Insurance Service and the World Bank estimates smoking-related medical costs at 40.7 trillion won ($29.9 billion) from 2014–2024, with annual costs rising nearly 70% over the period despite declining smoking rates. More than 82% of costs were borne by public insurance, driven largely by cancer treatment, particularly lung cancer, the study said.

    Health officials say the findings strengthen the NHIS’s damages claim against KT&G, Philip Morris Korea, and BAT Korea, ahead of an appellate ruling expected later this month. Filed in 2014, the case is South Korea’s first tobacco lawsuit brought by a public institution seeking compensation for smoking-related health care expenses.

  • Arizona Vape Shops Fined $460K for Selling to Minors

    Arizona Vape Shops Fined $460K for Selling to Minors

    Arizona’s Attorney General Kris Mayes ordered that a vape shop owner with several locations pay $460,000 in restitution for illegally selling tobacco and nicotine products to underage customers. Mayes’ office cited multiple violations at various locations, and alleged the stores continued illegal sales even after citations, fines, and warnings. The lawsuit said Pro Source Supply LLC, Pro Source Vapes LLC, and Pro Source CBD LLC, all owned by Timothy Kell, refused to check IDs and knowingly sold tobacco and nicotine products to underage buyers.

    As part of the settlement, Pro Source must implement strict age-verification policies, enhanced employee training, electronic ID scanning, and regular compliance checks. The company is also prohibited from selling single cigarettes, flavored cigarillos at certain locations, and products resembling candy, toys, or school supplies. A compliance officer will be hired, and third-party audits will be reported to the attorney general’s office.

  • Juul, NJOY, and Altria Battle Over Public Document Case

    Juul, NJOY, and Altria Battle Over Public Document Case

    Juul Labs asked a federal court in Arizona to block rivals NJOY and Altria from using documents hosted in a public University of California, San Francisco (UCSF) database, according to a joint court filing dated December 24. The dispute arises in an ongoing patent lawsuit, with Juul arguing that some documents were inadvertently disclosed during a large-scale production tied to state settlement agreements and remain protected by attorney–client privilege.

    NJOY and Altria oppose the request, saying the documents have been publicly accessible online for months or years and are therefore no longer privileged. They argue the materials may contain evidence relevant to alleged misconduct in Juul’s patent filings. After failed negotiations, the issue has been submitted to U.S. District Judge John J. Tuchi, who will decide whether the publicly available documents can be excluded from use in the litigation.

  • FCTC Expansion Pushing Israel to Consider Tobacco Lawsuits

    FCTC Expansion Pushing Israel to Consider Tobacco Lawsuits

    Israel could see major legal and financial action against tobacco companies following the recent expansion of Article 19 of the WHO Framework Convention on Tobacco Control (FCTC), which includes calling on governments to file civil lawsuits to recover health costs caused by smoking. Attorney Amos Hozner told Arutz Sheva that in Israel, such lawsuits could generate NIS 40 billion ($12.4 billion) or more, given smoking prevalence over 20% and high public health costs. The provision encourages government authorities to pursue civil and administrative remedies against tobacco companies.

    Hozner pointed to high smoking rates among young people in Israel’s haredi community, with up to 54% of yeshiva students and 80% of secondary school students having tried smoking, and 56% of 17- to 24-year-olds smoking regularly.

  • Cannabis Co. Says NY’s Seed-to-Sale Regs Create Undue Costs

    Cannabis Co. Says NY’s Seed-to-Sale Regs Create Undue Costs

    Cannabis company Veterans Holdings, Inc filed a lawsuit this week in New York Supreme Court against the state, challenging its seed-to-sale tracking system, arguing it significantly increases operating and compliance costs for licensed businesses. The program, overseen by the Office of Cannabis Management, requires cannabis products to be tracked from cultivation through retail sale using the “Metrc” platform.

    According to the company, and echoed by other growers and processors, the program’s tagging, reporting, and data-entry requirements sharply increase compliance expenses, particularly for smaller operators. Businesses say costs associated with mandatory tags, system integration, staff training, and ongoing reporting could erode already thin margins in the state’s developing legal cannabis market.

  • Vape Reps Appeal Mississippi Law to 5th Circ.

    Vape Reps Appeal Mississippi Law to 5th Circ.

    A coalition of businesses that sell vape products containing synthetic nicotine appealed a U.S. federal court’s refusal to block a Mississippi law restricting the sale of those products. The groups are taking the case to the U.S. Court of Appeals for the Fifth Circuit after the U.S. District Court for the Southern District of Mississippi denied their request for a temporary injunction.

    The contested state law, House Bill 916, which took effect in July 2025, bans the sale of e-cigarette products containing synthetic nicotine in Mississippi. Enforcement, including penalties and product confiscations, began later in the year.

    The plaintiffs, including industry groups such as the Vapor Technology Association and several retailers, argue the law is preempted by federal authority under the U.S. Constitution’s Supremacy Clause, asserting that it effectively conditions sales on FDA marketing authorization—a domain they say belongs exclusively to the federal government.

    Mississippi’s Department of Revenue Commissioner Chris Graham is named as the defendant in the appeal.