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Tag: RJR

  • 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.

  • ITC Opens ENDS Investigation on Reynolds Complaint

    ITC Opens ENDS Investigation on Reynolds Complaint

    The U.S. International Trade Commission (USITC) has launched an investigation into certain disposable and closed-system electronic nicotine delivery systems and related components following a complaint filed by R.J. Reynolds Tobacco and affiliated companies. The complaint alleges violations of the Prevent All Cigarette Trafficking (PACT) Act, state and local flavor bans, directory requirements, and excise tax compliance, claiming that imports and sales of these products threaten the U.S. industry.

    Respondents include nine U.S. distributors such as D&A Distribution and Midwest Goods, as well as seven manufacturers based in China and Hong Kong, including Geek Miracle and Shenzhen Geekvape Technology. The USITC has not ruled on the merits and will hold evidentiary hearings before issuing a determination, with potential remedies including exclusion and cease-and-desist orders.

  • 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.

  • 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.