British American Tobacco (BAT) is facing a lawsuit in London brought by more than 100 current and former shareholders who claim the company failed to adequately inform the market about its historical dealings linked to North Korea and violations of U.S. sanctions.
The claim was filed at the High Court in London on February 27 and centers on allegations that the tobacco giant did not properly disclose information regarding its business activities involving North Korea over a period spanning from 2007 to 2023.
According to a statement from the law firm Fox Williams, which represents the claimants, the lawsuit argues that the company failed to publish sufficient details to investors about the scope and risks of those operations. The legal action contends that the lack of disclosure prevented shareholders from fully understanding the potential legal and financial consequences tied to the company’s conduct.
The case follows a major settlement reached in 2023 between BAT and U.S. authorities. At that time, a subsidiary of the company admitted conspiring to violate U.S. sanctions by selling tobacco products to North Korea and participating in a bank fraud scheme between 2007 and 2017.
As part of the resolution, BAT agreed to pay more than $635 million in penalties to U.S. regulators. The settlement marked one of the largest enforcement actions tied to sanctions violations involving North Korea.
The new lawsuit in the United Kingdom seeks to determine whether the company breached its obligations to investors by failing to properly communicate information about those activities to the market over a prolonged period.
The total value of the claim has not yet been disclosed, and court filings have provided limited details regarding the damages sought by the shareholders.
Court records also show that a separate lawsuit was filed against BAT at the High Court on the same day. The law firm Stewarts, which is representing that group of claimants, declined to comment on the proceedings.
BAT, which sells cigarettes and other nicotine products globally, did not immediately respond to requests for comment on the litigation.
The case adds a new layer of legal scrutiny for the company following the U.S. sanctions enforcement action, highlighting the potential long-term consequences for multinational corporations accused of failing to fully disclose compliance risks to investors.