British American Tobacco Faces Legal Battle Over U.S. Sanctions Breach

British American Tobacco is being sued by shareholders in London for not disclosing breaches of U.S. sanctions related to its North Korea operations. The company had agreed to a $635 million settlement in 2023 following a subsidiary's admission to violating these sanctions from 2007 to 2017.

British American Tobacco (BAT) is embroiled in a legal dispute as shareholders have filed a lawsuit at London's High Court, accusing the company of not properly informing the market about breaches of U.S. sanctions. This follows BAT's 2023 settlement agreeing to pay over $635 million to U.S. authorities after a subsidiary confessed to conspiring to breach sanctions by selling tobacco products to North Korea and engaging in bank fraud over a decade.

The lawsuit involves over 100 current and former BAT shareholders and highlights alleged failures in disclosing crucial market information regarding its business dealings in North Korea since 2007. The law firm Fox Williams, representing some of the claimants, elaborated on these allegations in a recent statement. BAT has yet to publicly comment on the matter.

In conjunction with this, another lawsuit was registered against BAT on the same day, according to court records. However, Stewarts, the law firm representing the separate group of claimants, chose not to provide further details or comments about the case.

(With inputs from agencies.)