Archived Investigations

British American Tobacco p.l.c (NYSE: BTI)

Company Name:British American Tobacco
Stock Symbol:NYSE: BTI
Court:Eastern District of New York
Class Period Start:02/09/2023
Class Period End (inclusive):12/06/2023
Filing Deadline:The deadline has passed.
January 25, 2024

BA Tobacco and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws. 

On December 6, 2023, the Company disclosed 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 due to “macro-economic headwinds impacting the U.S. combustibles industry,” which The Wall Street Journal referred to as “one of the biggest corporate write-offs in recent history,” noting the Company’s statement that its performance in the U.S. had been hindered by smokers switching to cheaper, nonpremium brands.

On this news, the price of BA Tobacco’s American Depositary Receipts fell $2.68 per share, or 8.88%, to close at $28.86 per ADR on December 6, 2023.

The case is David v. British American Tobacco p.l.c., et al., No. 24-cv-00517.

Click here to read the first filed complaint.