Investors Urged to Join Class Action Lawsuit Against British American Tobacco

British American Tobacco (BAT), one of the world’s largest tobacco companies, is facing a class action lawsuit in the United States for allegedly misleading investors about its performance and prospects in the U.S. market. The lawsuit claims that BAT failed to disclose the impact of macro-economic headwinds and consumer preferences on its U.S. business, resulting in a massive impairment charge and a sharp drop in its share price.

The class action lawsuit was filed by ClaimsFiler, a free shareholder information service, on behalf of investors who purchased or acquired the securities of BAT between February 9, 2023 and December 6, 2023, inclusive (the “Class Period”). The lawsuit alleges that BAT and certain of its executives violated federal securities laws by making false and misleading statements and omissions about its U.S. operations.

According to the complaint, BAT failed to inform investors that its performance in the U.S. had been hindered by smokers switching to cheaper, nonpremium brands, as well as by increased competition from e-cigarettes and other alternatives. The lawsuit also alleges that BAT concealed the fact that it was facing significant legal and regulatory risks in the U.S., including potential liability for the opioid crisis and investigations by the Department of Justice and the Federal Trade Commission.

The truth was revealed on December 6, 2023, when BAT announced that it was taking a 25 billion Pound (around $31.5 billion USD) impairment on the cigarette brands it had acquired from Reynolds American Inc. in early 2017. This was one of the biggest corporate write-offs in recent history, reflecting the deterioration of BAT’s U.S. business. On this news, the price of BAT’s American Depositary Receipts (ADRs) fell $2.68 per share, or 8.88%, to close at $28.86 per ADR on December 6, 2023.

Investors Have Until March 25, 2024 to Join the Lawsuit

The lawsuit seeks to recover damages for BAT investors under the federal securities laws. The lead plaintiff deadline is March 25, 2024. Investors who suffered losses exceeding $100,000 investing in BAT stock or options during the Class Period are encouraged to contact ClaimsFiler or its partner law firm, Kahn Swick & Foti, LLC, for a free case evaluation.

ClaimsFiler is a service that helps retail investors recover their share of billions of dollars from securities class action settlements. Investors can register for free to access information and settlement websites for various securities cases, upload their portfolio transactional data to be notified of relevant cases, and submit inquiries to the law firm for free case evaluations. Kahn Swick & Foti, LLC is a law firm that specializes in complex litigation, class actions, and shareholder derivative suits.

The case is David v. British American Tobacco p.l.c., et al., No. 24-cv-00517. It is pending in the United States District Court for the Eastern District of New York.

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