BAT Faces London Lawsuit Over North Korea Sanctions Breach

British American Tobacco is embroiled in a lawsuit by shareholders accusing it of not disclosing breaches of U.S. sanctions related to its operations in North Korea. BAT had previously agreed to a significant financial settlement with U.S. authorities for these violations. The lawsuit's value remains undisclosed.

British American Tobacco (BAT) is under legal scrutiny as shareholders have initiated a lawsuit in London, accusing the company of not adequately informing markets about its breaches of U.S. sanctions associated with business in North Korea.

In 2023, BAT agreed to pay over $635 million to U.S. authorities following a subsidiary's admission of conspiring to violate sanctions by selling tobacco products to North Korea and committing bank fraud from 2007 to 2017. The lawsuit was filed by over 100 current and former shareholders at the London's High Court on February 27, according to claimant lawyers.

Claimants allege that BAT failed to disclose information about its North Korean business operations from 2007 to 2023 to the stock market. BAT acknowledged the lawsuit, relating to its historical North Korea activities, but has refrained from commenting due to its settlement with U.S. authorities. Details of the lawsuit's value are currently unknown.

(With inputs from agencies.)