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Tag: RJR

  • Reynolds Defends Policy Advocacy Amid Wyden’s Probe 

    Reynolds Defends Policy Advocacy Amid Wyden’s Probe 

    Reynolds American Inc. announced that it has responded to Senate Finance Committee Chairman Ron Wyden (D-OR) regarding an inquiry into tobacco industry influence over flavored e-cigarette regulations. The probe examines a $5 million corporate donation to a pro-Trump super PAC, MAGA Inc., which occurred shortly before the Trump administration scaled back a planned ban on flavored vapor products. Wyden questioned whether the political contribution directly swayed executive policy decisions. 

    In its official response, Reynolds defended its advocacy for reduced-risk products while rejecting the pay-to-play allegations. A company spokesperson emphasized that Reynolds remains committed to providing adult smokers with non-combustible alternatives. The manufacturer maintained that responsibly marketed flavored vapor options serve as vital harm-reduction tools to help consumers transition away from traditional cigarettes. 

    Addressing youth vaping concerns, Reynolds highlighted its strict retail compliance framework. The company stated that its commercial strategy relies heavily on robust underage-access controls, including mandatory ID scanning at point-of-sale locations. Reynolds reiterated its commitment to federal regulatory frameworks, asserting that it can balance adult consumer access with strong protections against youth initiation. 

  • Ruling Could End Reynolds’ Vuse Alto Royalty Payments to Altria  

    Ruling Could End Reynolds’ Vuse Alto Royalty Payments to Altria  

    Law360 reported that R.J. Reynolds has secured a potentially significant reduction in the long-term costs associated with its Vuse Alto business, after a North Carolina federal court ruled that a sublicense obtained from Juul Labs ends Reynolds’ obligation to make future patent royalty payments to Altria Client Services. The dispute stems from a 2022 jury decision finding that Vuse Alto infringed three Altria patents, resulting in an approximately $95.2 million damages award. Reynolds was later ordered to pay a 5.25% royalty on positive net sales of the affected products.  

    According to Law360, Judge William L. Osteen Jr. found that the Juul sublicense authorized Reynolds’ continued use of the relevant patent rights, eliminating the basis for future infringement royalties. The court rejected Altria’s argument that defects in part of the sublicense invalidated the entire agreement, citing its severability provision. Law360 reported that Altria said potentially “hundreds of millions of dollars” in future royalties were at stake. The ruling does not affect the earlier infringement finding or past damages, but could eliminate Reynolds’ 5.25% royalty payments on future covered Vuse Alto sales.  

  • 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.

  • RJR Seeks to Block Lawyer’s Live Testimony in Altria Dispute

    RJR Seeks to Block Lawyer’s Live Testimony in Altria Dispute

    R.J. Reynolds Vapor Co. asked a North Carolina court to quash a trial subpoena that would require one of its in-house attorneys to testify in person at an evidentiary hearing in an ongoing royalty dispute with Altria Group. The company argues that a previously recorded deposition of the attorney should suffice, saying live testimony would be unnecessary and burdensome.

    The dispute centers on royalty obligations tied to vaping technology and agreements between the rival firms. Reynolds maintains that compelling its lawyer to appear would intrude on privileged matters and exceed what is needed for the court to assess the evidentiary issues. The matter is before a judge in North Carolina, who will decide whether the deposition recording can replace in-court testimony.

    Source: Law 360 (pay)

  • 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.

  • EG America and RJR’s Reconfigured Planogram Paying Off

    EG America and RJR’s Reconfigured Planogram Paying Off

    EG America’s said its backbar optimization strategy is driving significant results, with modern oral nicotine products achieving double-digit volume growth in 2025 and outpacing industry trends in the segment. Operating more than 1,500 locations, the retailer partnered with R.J. Reynolds to expand its VELO Plus synthetic nicotine pouch line, using analytics and supplier collaboration to optimize space and assortment. By reallocating underperforming areas and adding new facings without disrupting category balance, EG America created a planogram designed for growth, supporting top-selling segments while maintaining overall visibility.

  • 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.” 

  • Reynolds Pledges $3.2B to U.S. Manufacturing by 2030

    Reynolds Pledges $3.2B to U.S. Manufacturing by 2030

    Today (March 5), Reynolds American announced the launch of its “Growing Tomorrow” campaign, a commitment to invest more than $3.2 billion in its U.S. operations by 2030 in order to strengthen American manufacturing, support jobs, and expand its multicategory nicotine portfolio. The investment program, which began in 2024, is expected to support more than 2,000 direct and indirect jobs across the company’s operations and supply network. President and CEO David Waterfield said the campaign reflects continued investment in U.S. manufacturing and workforce development as the company positions itself for long-term growth.

    The funding will support Reynolds American’s ongoing transition toward a predominantly smokeless portfolio, including modernization and expansion of manufacturing facilities, increased innovation and production capacity, and stronger domestic supply chains. The company said more than $200 million has already been invested in U.S. manufacturing over the past two years as part of the broader commitment.

    The company currently employs more than 4,300 people in the United States across manufacturing, science, engineering, and corporate roles. Chief People Officer Borgia Walker said the organization is focused on expanding career opportunities and workforce capabilities as it continues to grow. Reynolds American said its supply chain also supports agriculture and local economies nationwide. In 2025, the company was the largest purchaser of U.S. tobacco leaf, reinforcing the role of farmers, particularly in North Carolina, within its domestic supply network.