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Tag: RJR

  • 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.

  • RJR Closes Arguments in $14M Smoker Lawsuit

    RJR Closes Arguments in $14M Smoker Lawsuit

    A Florida jury heard closing arguments on Monday (January 27) in a lawsuit seeking $14 million in damages from R.J. Reynolds Tobacco Co. for the pain and suffering of a former smoker who later required a lung transplant. Attorneys for the plaintiff argued that the company should be held liable for 14 years of debilitating health consequences caused by smoking-related disease, including severe respiratory failure that ultimately led to the transplant.

    The case is part of Florida’s long-running Engle progeny litigation, which allows individual smokers or their families to pursue damages against tobacco companies. R.J. Reynolds disputed the damages claim, arguing that the smoker was aware of the risks associated with cigarettes and continued smoking despite widespread public health warnings. The jury is expected to decide whether the company is legally responsible and, if so, the appropriate level of compensation.

  • 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.

  • 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.

  • Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    A Washington state judge ordered R.J. Reynolds Tobacco Co. to arbitrate rival Philip Morris USA Inc.’s claims that it breached a 2017 deal delineating billions of dollars in annual payments. Ruling from the bench on September 3, King County Superior Court Judge Michael Scott granted the motion to force arbitration, contending Philip Morris’ breach-of-contract claim against R.J. Reynolds and the other tobacco producers “clearly arises” out of the 2017 agreement and therefore must be arbitrated.

    The conflict centers on longstanding disagreements over the annual Master Settlement Agreement (MSA) payments to the state. RJR and fellow plaintiffs claim PM USA aims to derail a separate 2025 settlement signed between RJR and Washington by attempting to enforce an arbitration clause dating back to the 2017 agreement. They argue PM USA is improperly interfering in a deal it is not directly part of.

    In June, PM USA submitted its motion to compel arbitration, asserting that RJR and the other defendants are bound by the 2017 arbitration clause and that the court must defer to this private resolution mechanism.

  • Vape Industry Seeks to Block NC Law “Backed by Big Tobacco”

    Vape Industry Seeks to Block NC Law “Backed by Big Tobacco”

    Vape industry groups are urging the Fourth Circuit Court of Appeals to temporarily block enforcement of a new North Carolina law that could ban many e-cigarettes from the market. In an emergency filing, the groups claim the law was heavily influenced by Reynolds American Inc. and is designed to eliminate competition from vaping products that help smokers quit.

    The law prohibits the sale of vapor products that lack full FDA authorization, even though many remain under scientific review. Critics say this effectively bans nearly all independent vape brands in favor of a few tobacco-owned products that have gained approval.

    The plaintiffs argue the statute undermines federal regulatory authority, disrupts public health harm-reduction efforts, and was crafted to protect big-tobacco corporate interests over consumers. They are seeking an injunction to prevent what they describe as irreparable harm to small businesses and adult nicotine users seeking alternatives to smoking.

    The court has yet to rule on the request.

  • U.S. Supreme Court Backs RJR, Broader Legal Challenges to FDA

    U.S. Supreme Court Backs RJR, Broader Legal Challenges to FDA

    The U.S. Supreme Court ruled 7–2 in favor of R.J. Reynolds Vapor Company, allowing it to challenge FDA denials of e-cigarette marketing applications in the Fifth Circuit, even though the company is based in North Carolina.

    The decision effectively expands who can file lawsuits under the 2009 Family Smoking Prevention and Tobacco Control Act, now including retailers and trade groups affected by product bans, not just manufacturers. This enables tobacco companies to approach conservative-leaning courts like the Fifth Circuit, which has frequently ruled against FDA vaping restrictions.

    The FDA argued that retailers were never meant to be included under the legislation, and that 75% of e-cigarette appeals were being filed in the Fifth Circuit through strategic partnerships with local vape shops and trade groups, undermining consistent enforcement.

    Justice Amy Coney Barrett, writing for the majority, said that retailers are “adversely affected” because they lose potential sales or risk penalties by selling unapproved products. Justice Ketanji Brown Jackson, in dissent, warned the ruling contradicts Congress’s intent, allowing companies to bypass venue restrictions meant to streamline regulation.

    The case specifically involved menthol-flavored Vuse vapes, which the FDA had denied for failing to meet public health standards. The ruling now returns the case to the Fifth Circuit for further review.

  • 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).”