British American Tobacco P.L.C. (BTI) Failed to Disclose the Risks and Potential Likelihood of an Impairment to its Premium American Cigarette Brands
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired British American Tobacco P.L.C. (NYSE: BTI) securities between February 9, 2023 and December 6, 2023. British American Tobacco is a multi-national tobacco company that sells cigarettes and other tobacco-related products, such as vaping products, chewing tobacco, snus, and heated tobacco products.
According to the complaint, during the class period, defendants failed to disclose that British American Tobacco materially understated the risks and potential likelihood of an impairment to its Premium American Cigarette Brands as a result of various longstanding headwinds.
In January 2017, British American Tobacco, which already had a 42% stake in Reynolds American Inc. (“Reynolds”), took over the remaining interest in Reynolds for $49.4 billion dollars, valuing Reynolds at around $86 billion. Reynolds became a subsidiary and British American Tobacco took control of the Camel, Newport, and Natural American Spirit cigarette brands (“Premium American Cigarette Brands”), among others.
On December 6, 2023, British American Tobacco issued a press release announcing that it was taking a 25 billion Pound (or around $31.5 billion USD) impairment on the cigarette brands it acquired from Reynolds. On this news, British American’s ADR price fell $2.68 per share, or 8.88%, to close at $28.86 per ADR on December 6, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against British American Tobacco P.L.C. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by March 25, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
