SEC reportedly probing Altria’s Juul investment
Juul model vape cartridges are pictured for sale at a shop in Atlanta, Georgia.
Elijah Nouvelage | Reuters
The Securities and Trade Commission has launched an investigation into Altria’s financial investment in e-cigarette start off-up Juul Labs, the Wall Avenue Journal reported on Friday.
Regulators are inspecting whether or not the tobacco enterprise sufficiently disclosed to shareholders the risks when it invested $12.8 billion for a 35% stake in Juul in 2018, sources told the Journal. Altria’s stake valued the get started-up at $38 billion.
Altria took a $4.1 billion impairment demand for its investment decision in Juul in January. The organization said the charge displays the escalating authorized prices towards Juul and the expectation that the quantity of lawsuits will only boost. Juul is being sued by various states for its job in advertising vaping between teens and kids.
Juul and Altria have each responded to subpoenas from the SEC, sources told the Journal. The e-cigarette maker turned around paperwork to the SEC that included correspondence with Altria and economic projections that it gave to Altria prior to its selection to devote in Juul, one man or woman said to the Journal.
When arrived at by CNBC, Altria declined to comment. Juul did not straight away reply to CNBC’s request for comment.
Go through more about the investigation in the Journal’s report.
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