British American Tobacco p.l.c.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired British American Tobacco p.l.c. (“BAT” or the “Company”) (NYSE: BTI) securities during the period from February 9, 2023 through December 6, 2023, inclusive (the “Class Period”). Investors have until March 25, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On December 6, 2023, BAT issued a press release announcing that it was taking a 25 billion Pound (or around $31.5 billion USD) impairment (the “Impairment”) on the cigarette brands it acquired from Reynolds. That same day, The Wall Street Journal published an article entitled “BAT Takes $31.5 Billion Charge on U.S. Cigarette Brands”, which stated in part that "[BAT] is booking a $31.5 billion charge to slash the value of its U.S. cigarette business, one of the biggest corporate write-offs in recent history." Also on December 6, 2023, Reuters published an article entitled “BAT’s US writedown puts tobacco transition in spotlight.” The Reuter's article stated the following: "[BAT’s] admission that its U.S. cigarette brands will be worthless within decades has ramped up pressure on the company to prove it can better compete in alternatives like vapes. Earlier on Wednesday, BAT put a 30-year lifetime on some U.S. tobacco brands’ value, taking a $31.5 billion noncash impairment. The move marked the first time a tobacco company has acknowledged that hugely profitable brands have no economic future." 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.
According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) British American Tobacco materially understated the risks and potential likelihood of an impairment to its Premium American Cigarette Brands as a result of longstanding headwinds and; (2) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 6, 2023, BAT issued a press release announcing that it was taking a 25 billion Pound (or around $31.5 billion USD) impairment (the “Impairment”) on the cigarette brands it acquired from Reynolds. That same day, The Wall Street Journal published an article entitled “BAT Takes $31.5 Billion Charge on U.S. Cigarette Brands”, which stated in part that "[BAT] is booking a $31.5 billion charge to slash the value of its U.S. cigarette business, one of the biggest corporate write-offs in recent history." Also on December 6, 2023, Reuters published an article entitled “BAT’s US writedown puts tobacco transition in spotlight.” The Reuter's article stated the following: "[BAT’s] admission that its U.S. cigarette brands will be worthless within decades has ramped up pressure on the company to prove it can better compete in alternatives like vapes. Earlier on Wednesday, BAT put a 30-year lifetime on some U.S. tobacco brands’ value, taking a $31.5 billion noncash impairment. The move marked the first time a tobacco company has acknowledged that hugely profitable brands have no economic future." 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.
According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) British American Tobacco materially understated the risks and potential likelihood of an impairment to its Premium American Cigarette Brands as a result of longstanding headwinds and; (2) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.