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Tag: Reynolds

  • RJR Seeks to Overturn $34.5M Verdict

    RJR Seeks to Overturn $34.5M Verdict

    R.J. Reynolds Tobacco Co. asked Florida’s Third District Court of Appeal to overturn a $34.5 million wrongful death verdict awarded to the widow of a smoker who died at age 38, arguing the plaintiff failed to prove the smoker relied on any fraudulent statements by the company regarding the health risks of cigarettes. Reynolds contends Florida Supreme Court precedent requires Engle-progeny plaintiffs pursuing fraud-based claims to demonstrate reliance on specific misleading statements, and that the evidence presented at trial did not meet that standard.

    The appeal is the latest in a series of post-Engle tobacco cases in Florida, where cigarette manufacturers continue to challenge large jury awards on issues including fraud, jury instructions, and comparative fault. Recent appellate decisions have shown Florida courts closely scrutinizing whether trial courts properly instructed juries and whether plaintiffs satisfied the evidentiary requirements for fraudulent concealment claims, making the outcome of the appeal potentially significant for future Engle litigation.

  • BAT Faces Expanded Class-Action Claims over Natural American Spirit

    BAT Faces Expanded Class-Action Claims over Natural American Spirit

    A divided federal appeals court revived class-action claims against British American Tobacco, Reynolds American, R.J. Reynolds, and Santa Fe Natural Tobacco over allegations that labels on Natural American Spirit cigarettes misled consumers into believing the products were safer than other cigarettes and contained no additives. Yesterday (July 29), the 10th U.S. Circuit Court of Appeals overturned a lower court’s refusal to certify the 12-state “safer cigarette” class while upholding certification of a separate eight-state class alleging that menthol constituted an additive.

    The case covers consumers in California, Colorado, Florida, Illinois, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Ohio, and Washington. The appeals court said the lower court prematurely addressed whether the products’ disclaimer — stating that the absence of additives “does NOT mean a safer cigarette” — was effective. A dissenting judge argued neither class should have been certified and warned that the decision could allow consumers who never read the labels to seek damages. The case returns to the lower court for further proceedings.

  • NYT Report Draws Attention to RJR Donation and FDA Policy Shift

    NYT Report Draws Attention to RJR Donation and FDA Policy Shift

    Reynolds American is under scrutiny following a The New York Times report linking a $5 million donation to a pro-Donald Trump super PAC with recent shifts in U.S. Food and Drug Administration policy on flavored vaping products. The report said Reynolds executives met with Trump shortly before the FDA issued guidance that could ease market access for certain flavored vape and nicotine pouch products, potentially benefiting major tobacco companies in the growing U.S. e-cigarette market.

    The White House denied any connection between the donations and policy decisions, stating that FDA actions are based on scientific evidence and public health considerations.

  • American Snuff Expands Manufacturing Workforce

    American Snuff Expands Manufacturing Workforce

    Reynolds American, as part of its $3.2 billion U.S. investment plan, announced that American Snuff Company is adding more than 50 new manufacturing roles at its Clarksville, Tennessee, facility, the company’s second-largest production site. The hiring, expected throughout 2026, includes machine operator and maintenance technician positions with hands-on training to support modern manufacturing and career growth.

    Since 2024, Reynolds American’s investment has already added 1,000 jobs and is projected to create another 1,000 direct and indirect roles across its U.S. operations and supply network. The expansion aligns with the company’s strategy to transition toward smokeless tobacco products while supporting local agriculture and the regional economy. Adriano Rusak highlighted the company’s commitment to providing local opportunities and preparing its workforce for the future.

  • ITC Rules ‘No Violation’ in RJR Complaint

    ITC Rules ‘No Violation’ in RJR Complaint

    The U.S. International Trade Commission issued a final determination in its investigation into certain disposable vaporizer devices, ruling that there was no violation of Section 337 in the case brought by R.J. Reynolds Tobacco Company, which targeted brands like Elf Bar and Geek Bar. This followed an earlier denial of a temporary exclusion order due to a lack of evidence regarding the likelihood of success on the merits.

    R.J. Reynolds began pivoting its legal strategy with a new investigation instituted by the USITC on March 3, which shifts focus to alleged violations of the PACT Act, state flavor bans, and tax laws by Chinese manufacturers and U.S. distributors. While the previous patent-based case is closed, the commission has begun its review of these new, broader regulatory and competition-based allegations.

    Following the ruling, the Vapor Technology Association’s executive director, Tony Abboud, issued a statement, saying, “The ITC’s decision represents a positive path forward for our industry. It proves that, unlike the misguided FDA, some federal agencies are still willing to stand up to corporate interests for the good of our free market and American public health. The ITC’s decision, rejecting all of the claims, is a decisive blow against those seeking to use government agencies to corner a market and a huge step for President Trump’s America First agenda. 

    “We appreciate the ITC referencing our submission in its final decision and take this inclusion as a sign that the ITC seriously listened to the concerns of the massive American independent vaping industry.” 

  • BAT Reaffirms FY26 Guidance at Low End of Target

    BAT Reaffirms FY26 Guidance at Low End of Target

    British American Tobacco reaffirmed its full-year 2026 guidance with its presentation at the Consumer Analyst Group of New York Conference today (Feb. 18), signaling results will land at the lower end of its previously issued targets. BAT CEO Tadeu Marroco and Reynolds American President David Waterfieldhe said the group expects constant-currency revenue growth of 3–5%, adjusted profit from operations growth of 4–6% (adjusted for Canada and weighted toward the second half) and adjusted diluted EPS growth of 5–8%. BAT said its smokeless portfolio — including Vuse, glo and Velo — reached more than 31 million adult consumers globally by the end of 2025, contributing 18.2% of its £25.6 billion annual revenue. The company is targeting 50 million smokeless consumers by 2030 and aims for these products to generate half of group revenue by 2035, as it continues its transition toward reduced-risk categories.

    “We are committed to actively encouraging adult smokers, who would otherwise choose to continue to smoke, to make a full switch to smokeless alternatives,” Marroco said. “Regulation is not homogeneous globally. This affects not only which products are legally available for consumers, but also communication freedoms and excise levels.

    “BAT has taken a consumer-led, multi-category approach from the outset.  While initially more complex and costly to execute, it has proven to be the right strategy. Together with leveraging our brand building expertise, and global distribution reach, this enables us to maximize our opportunity – to switch smokers who would otherwise choose to continue to smoke, drive harm reduction, and create value.”

  • RJR Loses Fla. Engle Case, Damages 5% of Sought Sum

    RJR Loses Fla. Engle Case, Damages 5% of Sought Sum

    A Florida jury on Tuesday awarded $675,000 to a longtime Newport cigarette smoker who developed severe lung disease and ultimately required a lung transplant, delivering a far smaller sum than the $14 million sought by plaintiffs against R.J. Reynolds Tobacco Co. The case is part of Florida’s long-running Engle progeny litigation, which allows individual smokers to sue tobacco companies using findings from a landmark class action that established cigarettes are addictive and cause disease.

    While the jury found Reynolds liable for the plaintiff’s injuries, the verdict, according to Law 360, highlights the mixed legal risk tobacco companies still face in Florida: ongoing exposure to adverse findings, but with damages frequently falling well below plaintiffs’ demands, potentially tempering financial impact on manufacturers despite persistent litigation.

  • FDA Pushed on ‘De Facto’ Vape Ban by 5th Circ.

    FDA Pushed on ‘De Facto’ Vape Ban by 5th Circ.

    A panel of the U.S. Court of Appeals for the Fifth Circuit signaled skepticism yesterday (January 6) toward the Food and Drug Administration’s claim that it has not effectively banned flavored refillable e-cigarette products, suggesting the agency’s near-total rejection of applications amounts to a de facto prohibition. During oral arguments, Judge Cory T. Wilson noted that the FDA has approved only six applications out of hundreds of thousands of premarket tobacco product applications (PMTAs), remarking that “if you’re effectively at 100% denial on a certain class of products, then it is a de facto ban.”

    The case was brought by VDX Distro Inc., which is challenging the FDA’s refusal to authorize its menthol-flavored refillable vaping products. Government attorney Ben Lewis argued that no ban exists because some products have been approved, but judges pressed the agency on whether it has ever approved a flavored e-cigarette without evidence showing it provides greater smoking cessation benefits than tobacco-flavored products. Counsel for VDX argued the FDA violated the Tobacco Control Act by imposing new, unwritten standards without notice-and-comment rulemaking, effectively blocking all open-system refillable devices.

    Industry amici echoed those concerns, with an attorney for R.J. Reynolds Vapor Co. arguing the FDA applies stricter standards to flavored vaping products than to other nicotine products, such as pouches. The panel did not rule from the bench, but the pointed questioning underscores growing judicial scrutiny of FDA tobacco regulation, with potential implications for future authorization pathways for flavored vaping products closely watched by the tobacco and nicotine industries.

  • BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    Yesterday (October 28), Reuters reported that BAT paused its pilot launch of the Vuse One disposable vape in the U.S., highlighting the regulatory hurdles in the rapidly growing nicotine products market, news that was confirmed by a spokesperson for Reynolds American, BAT’s U.S. subsidiary. The pilot will be postponed while the company focuses on its existing portfolio, including a nicotine pouch currently under PMTA review that FDA has promised to fast-track.

    “We will bring Vuse One to market at the appropriate time,” the spokesperson said. “Vuse One is one of the few disposable vapor products that meet the in-market and PMTA-deadline requirements that Congress established in 2022. We have communicated with our customers to ensure that they are fully informed about our decision.”

    The move follows increased U.S. Food and Drug Administration (FDA) enforcement against unapproved vapes, many imported from China, which have eroded profits in the $22 billion U.S. smoking alternatives sector. Earlier this year, it was reported that several manufacturers, frustrated by the lack of progress within the FDA, were considering launching products prior to official approval, similar to those already available on the market.

    The pause underscores the industry’s broader push for reforms to streamline FDA approvals, which often take years. Philip Morris International and Altria are also navigating similar challenges, balancing regulatory compliance with the competitive pressure from unlicensed products. The FDA has signaled intentions to accelerate applications, though public health groups warn that any loosening of review standards could undermine safety and oversight.

    The FDA recently sent a letter to “remind” manufacturers that selling new nicotine products without authorization is unlawful.

  • RJR Seeks Dismissal of ‘Carbon Neutral’ Vape Lawsuit

    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.