Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Altria's NJOY sues 34 e-vapor product makers, seeks damages

Published 10/19/2023, 01:13 PM
Updated 10/19/2023, 01:25 PM
© Reuters.

(Reuters) - Marlboro maker Altria Group (NYSE:MO) on Thursday said its e-cigarette brand NJOY had filed a suit seeking an injunction against a number of companies manufacturing and selling allegedly illicit e-vapor products in the United States.

The lawsuit, filed in a California court, claimed the products marketed by 34 foreign and domestic companies - including brands such as Elf Bar, Esco Bar and Puff Bar - violated the state's flavor ban law and "illegally competed" against companies that complied with state and federal laws.

NJOY, one of the few e-cigarette makers whose products have clearance from federal regulators, sought a nationwide injunction against the import, marketing and sale of these products, along with compensatory and punitive damages. It also said it might add more makers of vapor products to the complaint.

The move echoes a similar complaint by British American Tobacco (NYSE:BTI) last week to the U.S. International Trade Commission, alleging several manufacturers and retailers of popular disposable vapes were engaged in unfair imports. It also underscores some industry players' concerns about weak enforcement of the rules governing disposable vapes.

The U.S. Food and Drug Administration (FDA) has struggled to combat a surge in disposable vaping brands, some of which are being sold illegally, yet have come to dominate the market.

Last December, the U.S. Supreme Court had allowed California to enforce a voter-approved ban on flavored tobacco products in America's most populous state, denying a bid by a unit of British American Tobacco to block it on the grounds that the policy conflicted with federal laws.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Many other states have restricted flavored vaping products and several U.S. municipalities have adopted their own bans.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.