Tag: Altria Group

Alex Norcia Resigns From Filter, Moving to Altria

Tobacco harm reduction (THR) reporter Alex Norcia is leaving Filter magazine “and [departing] from journalism,” he wrote.
Norcia has written for Filter for the past two years, and he wrote for Vice before that. He is taking a role at Altria as a senior manager for regulatory advocacy, according to his Twitter post.
“I will remain involved in THR,” Norcia wrote. He broke the story about the U.S. Food and Drug Administration’s “Fatal Flaw” standard as well as dug into synthetic nicotine before the topic caught fire.
“Reflecting on the events I’ve reported for the better part of four years leaves me with a sense of just how fast the news moves. But it can get, unfortunately, repetitive,” he wrote about his experiences. He cited cyclical news like flavor bans that have spread across states and the impacts of such laws.
He noted his favorite moments as well, detailing a well-rounded career in THR reporting.
“Now, like everybody else, I’ll be waiting to see if the FDA bans menthol combustibles or lowers the nicotine levels in cigarettes or ever authorizes a flavored nicotine vaping product (even menthol),” he wrote. “Or whether, on the world stage, more countries will follow pathways like the United Kingdom, Sweden or Japan—or, conversely, prohibition-oriented responses like India, Taiwan and Mexico.
“I don’t know the answers to these questions. Like other observers in this rapidly evolving field, I’ve never been able to predict the future. But I’ll still be doing what I can to address the present.”
February 15, 2023
RJR Vapor Denied New Trial in $95 Million Altria Verdict

Credit: Kristina Blokhin
RJ Reynolds Vapor Co. was denied a new trial on its September loss that awarded $95 million to Altria Group for its Vuse Alto e-cigarette’s infringement of three vape pod patents.
“That the jury did not agree with” Reynolds “does not mean the trial was unfair,” Judge N. Carlton Tilley Jr. wrote in an opinion issued Thursday in the U.S. District Court for the Middle District of North Carolina, according to Bloomberg Law.
Tilley denied BAT subsidiary Reynolds’ motion for a new trial or to reduce the damages jurors awarded to Altria Client Services in their Sept. 7 verdict.
In its retrial request, Reynolds Vaper stated that “Altria’s improper injection of inflammatory evidence regarding patent infringement allegations against Reynolds in other cases denied Reynolds a fair trial. Erroneous evidentiary rulings also prejudiced Reynolds’ ability to present its defense. Those errors independently, and under the cumulative error doctrine, affected the verdict such that a complete new trial is required.”
Altria said in a statement that “this was a fair trial. There is no basis for another trial, and we are pleased that the jury correctly found that Reynolds Vapor has infringed a number of our patents.”
January 14, 2023
Altria Accuses Juul Labs of Hiding Payment Details

Altria Group Inc, Juul Labs’ largest stakeholder, has asked a federal judge to order the e-cigarette manufacturer to turn over details of its settlement with about 10,000 plaintiffs seeking to hold it responsible for a rise in youth vaping.
In a motion filed Wednesday in federal court in San Francisco, the Virginia-based company said the settlement, reported by The Wall Street Journal to be worth $1.7 billion, remains “shrouded in secrecy” even from other parties in the litigation.
Marlboro cigarette maker Altria, which took a 35 percent stake in Juul in 2018, was not part of the settlement and remains a defendant in mass tort litigation consolidated before U.S. District Judge William Orrick. Plaintiffs, including individuals and local government entities, accuse it of taking part in shaping Juul’s strategy to market e-cigarettes to minors, according to Reuters.
Altria said it needed to see details of the settlement, and the negotiations leading up to it, in order to evaluate its own potential remaining liability and explore potential claims against third parties.
While there may be reasons for keeping the settlement out of public view, the company said, Juul’s refusal to share it with Altria “goes far beyond the protections needed to address those concerns, lack any legal basis, and would severely prejudice” Altria.
In a separate motion Wednesday, Altria also asked Orrick to put on hold a class action seeking refunds on behalf of all Juul purchasers nationwide while Altria appeals the judge’s order certifying the class. The class action is one part of the larger consolidated mass tort before Orrick.
January 6, 2023
British Columbia, Juul Labs Litigation to Proceed

Photo: niroworld
The Supreme Court of British Columbia has dismissed an application from Altria Group to stay or dismiss proceedings against the company in a class action against Juul Labs, reports The Lawyer’s Daily. Altria owns 35 percent of Juul.
The claim alleges that Altria conspired with Juul in the sale of nicotine vaping devices, to youth in particular, with the goal “to convert them into smokers” in part through nicotine addiction.
The class action was initially filed in September 2019, shortly after Health Canada issued an advisory for vapers to “monitor themselves for symptoms of pulmonary illness … and to seek medical attention promptly if they have concerns about their health.”
“This is an important decision that ensures that Canadians are able to sue all the parties that they allege have harmed them,” said Daniel Bach, a partner in Siskinds, about the Supreme Court decision. “We look forward to litigating these issues against Altria on the merits.”
Juul has been pummeled by lawsuits and mounting restrictions on the production and sale of vaping products in recent years. The e-cigarette maker has suffered financially as a result.
Since 2019, Juul has halted all U.S. advertising, discontinued most of its flavors and attempted to rebrand itself as a product for older smokers who seek alternatives to cigarettes.
According to press reports, Juul has been preparing to file for Chapter 11 bankruptcy.
This was the second appeal by Altria in this class action that British Columbia courts have dismissed. In October 2021, the B.C. Court of Appeal dismissed an appeal to an order allowing cross-examination on its affidavits in the company’s jurisdictional challenge.
October 19, 2022
Altria Ends Non-Compete Agreement With Juul Labs

Altria Group on Friday said it had exercised the option to be released from its non-compete deal with Juul Labs. The move comes nearly four years after the tobacco giant purchased a 35 percent stake in the e-cigarette manufacturer that at the time was dominating the market.
Altria is looking to permanently terminate its non-competition obligations to Juul Labs, give up certain rights including its board designation rights and reduce its voting power, according to a 8-K filing to the Securities and Exchange Commission.
The filing states Altria has exercised its option to permanently terminate its non-competition obligations to Juul Labs, losing the right to the board designation and significantly reducing its voting power, according to Barron’s.
“This decision … increases the financial and strategic options we can pursue to secure our business and address the impact of the (U.S. Food and Drug Administration’s) now stayed [marketing denial] order,” a Juul spokesperson said.
In July, Altria slashed the value of its stake in Juul to $450 million, down from the original value of $12.8 billion, allowing itself the option to be released from the non-compete clause and invest in or engage with any other e-cigarette manufacturers.
However, it did not seek to be released from the obligations at the time, and said it saw value in its investment rights in Juul. “The decision to terminate our non-compete maximizes our flexibility to compete in the e-vapor space while maintaining our economic interest in Juul,” Altria said on Friday.
A change in its stance means Altria could go it alone or pursue other vaping products. Privately owned Njoy, which has already survived the FDA’s controversial premarket tobacco product application (PMTA) process, could be a takeover target for Altria, according to some analysts.
In July of this year, NJOY Holdings Inc hired bankers for a possible sale of the company. The news report stated that privately held NJOY was likely to be valued at up to $5 billion.
“It’s more likely that Altria will seek to buy its way back into the e-cigarette category (which represents 7 percent of U.S. nicotine sales),” Cowen analyst Vivien Azer said.
October 1, 2022
Altria Investor Settlement Over Juul Denied by Judge

Photo: steheap
A U.S. federal judge declined to give preliminary approval to a proposed $117 million settlement between Altria Group and shareholders in a lawsuit over the company’s investment in Juul Labs, calling the deal “inadequate,” reports Law360.
The lawsuit contends that Altria’s executives threw caution to the wind when they bought a 35 percent stake in Juul for $12.8 billion in 2018.
According to the shareholders, the Altria executives also engaged in illegal and anti-competitive conduct that cost Altria billions of dollars as Juul faced an increasing number of legal battles over the alleged health risks of its products and alleged marketing to underage consumers—problems that the plaintiffs say Altria knew about at the time of the investment but ignored.
The value of Altria’s investment has declined steadily as Juul Labs faced litigation and increased regulatory scrutiny.
The plaintiffs argued for approval of the settlement, saying the recovery is fair and reasonable when weighed against the costs and risks of further litigation. U.S. District Judge David J. Novak did not explain why he considered the settlement inadequate.
August 29, 2022
Altria Stock Up 8% Since FDA Pulled Juul Denial Order

When the U.S. Food and Drug Administration told Juul Labs it needed to pull its e-cigarette from the market, Altria stock (MO) hit a more than 52-week low of $41.00 in early July. On Aug. 15 MO was trading up 0.2 percent at $45.35.
Altria stock has fallen 7 percent over the past 12 months and is currently trading down 21 percent since peaking at a three-year high of $57.05 in early May, according to Schaefer’s Investment Research.
Additionally, shares of MO have dropped 6 percent year-to-date. However, Altria stock has increased 8 percent over the past month and is up 10 percent since the July low.
The FDA ordered Juul Labs to remove its products from the U.S. market and MO plummeted until, on July 6, the FDA said it was temporarily lifting its ban on Juul products.
The tobacco company’s valuation metrics remain mixed, with Altria stock trading at an intriguing forward price-earnings ratio of 9.29 but also at a high price-sales ratio of 3.92.
“Nonetheless, MO offers an incredible dividend yield of 7.97% with a forward dividend of $3.60, making it one of the highest dividend yields available on the stock market today,” the story states.
MO has struggled to maintain consistent growth on the bottom line over multiple years as well, reporting an $8.3 billion decrease in net income for fiscal 2019 and a $2 billion decrease for fiscal 2021.
Still, the tobacco company is expected to end fiscal 2022 with 5 percent revenue growth.
August 18, 2022
Poda Completes Asset Sale to Altria Client Services

Photo: Poda Holdings
Poda Holdings has completed the sale of substantially all of the assets and properties used in the company’s business to Altria Client Services for a total purchase price of $100.5 million, subject to certain adjustments and holdbacks, pursuant to a definitive agreement dated May 13, 2022.
Pursuant to the Asset Purchase Agreement, Poda will change its name to Idle Lifestyle and its trading symbol to IDLE.X. The company expects to trade as an inactive issuer under the policies of the Canadian Stock Exchange.
“The completion of this sale represents the culmination of a tremendous amount of effort from the entire Poda team, and I am extremely proud of what we have accomplished,” said Poda Director, CEO and Chairman Ryan Selby in a statement.
I believe this transaction provides maximum value for the company and its shareholders, and I know our innovative technology is now in good hands with Altria.”
June 27, 2022
FTC Complaint Against Altria’s Investment in Juul Dismissed

Photo: Aerial Mike
A U.S. Administrative Law Judge has dismissed the Federal Trade Commission’s (FTC) claims against Altria and Juul Labs arising out of Altria’s 2018 minority investment in Juul. Following a three-week trial, the judge found that the evidence failed to sustain the alleged violations.
The judge’s decision is subject to review by the FTC. Any decision by the FTC may be appealed to any U.S. Court of Appeals.
“We are pleased with this decision and have said all along that our minority investment in JUUL does not harm competition and does not violate the antitrust laws,” said Murray Garnick, executive vice president and general counsel of Altria, in a statement
In April 2020, the FTC issued an administrative complaint against Altria and Juul alleging that Altria’s 35 percent investment in Juul and the associated agreements constitute an unreasonable restraint of trade in violation of Section 1 of the Sherman Antitrust Act of 1890 and Section 5 of the Federal Trade Commission Act of 1914, and substantially lessened competition in violation of Section 7 of the Clayton Antitrust Act.
A public version of the decision is expected to be made available late this month.
February 15, 2022
Altria Banned From Importing IQOS Into U.S.

Photo: Kuznietsov Dmitriy
The U.S. Trade Representative has upheld the International Trade Commission’s (ITC) finding that Philip Morris International’s IQOS tobacco heating device infringes on patents held by British American Tobacco, reports The Winston-Salem Journal.
As a result of the ITC ruling, Philip Morris USA is barred from importing PMI’s IQOS 2.4, IQOS 3, IQOS 3 Duo heat-not-burn traditional cigarette products. It also was ordered to halt future sales of those products—marketed as Marlboro HeatSticks—already in the U.S.
Some retailers of the Marlboro HeatSticks, including convenience stores, already had displayed notifications to customers that those products could no longer be sold as of Monday.
“Today’s announcement provides a measure of success for our enforcement of intellectual property rights to ensure we can continue to innovate, as is common practice among innovation-based industries,” Gareth Cooper, BAT’s assistant general counsel, said in a statement. “As we have strenuously noted, there was no reason to overturn the policy.”
Altria said expressed disappointment with the decision. “We continue to believe that the plaintiff’s patents are invalid and that IQOS does not infringe on those patents,” the company said in a statement.
“The ITC’s importation ban makes the product unavailable for all consumers who have switched to IQOS, reduces the options for the over 20 million smokers looking for alternatives to cigarettes, and ultimately is detrimental to the public health.”
This sentiment was echoed by Gregory Conley, president of American Vaping Association, at the time of the ITC’s Sept. 30 decision.
“By potentially denying them the opportunity to switch to a harm reduction production IQOS, the real losers of this protracted court battle could end up being American adult smokers,” Conley said.
“While some may use vaping, snus, or pouches in the absence of IQOS, far too many American adults will choose to just smoke cigarettes instead.”
The U.S. Food and Drug Administration authorized IQOS for sale in April 2019. The products debuted in test markets in Atlanta in October 2019 and Richmond, Virginia, in November 2019. During the second quarter, PM USA expanded retail distribution of Marlboro HeatSticks into the Triad and other metro areas of North Carolina, as well as northern Virginia and Georgia.
Altria will likely appeal to the U.S. Court of Appeals for the Federal Circuit, which handles patent lawsuits. That process could take up to a year to reach a decision, with the likelihood of a successful appeal not favorable, according to industry analysts.
In the worst-case scenario for Altria and Philip Morris, the two companies would have to go back to the drawing board, moving production to the U.S. or changing up the design enough to avoid patent infringement claims.
PMI has successfully defended similar cases in the U.K. and elsewhere. BAT has already pursued litigation over IQOS in Poland, the Czech Republic, Bulgaria, Romania and Greece and through the European Patent Office.
November 30, 2021