BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Altria Group, Inc. (“Altria” or the “Company”) (NYSE: MO) securities between December 20, 2018 and September 24, 2019, inclusive (the “Class Period”). Altria investors have until December 2, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Altria investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On December 20, 2018, Altria acquired a 35% stake in investment in JUUL Labs, Inc. (“JUUL”), the purported U.S. leader in electronic vapor products, including e-cigarettes.
On April 3, 2019, the U.S. Food and Drug Administration (“FDA”) announced its investigation into nearly three dozen cases of people suffering from seizures after vaping.
On this news, the Company’s stock price fell $2.71, or nearly 5%, to close at $53.98 per share on April 3, 2019, thereby injuring investors.
Then, on August 29, 2019, The Wall Street Journal reported that the U.S. Federal Trade Commission (“FTC”) was investigating whether JUUL used influencers and other marketing practices to appeal e-cigarettes to minors.
On this news, the Company’s stock price fell $1.60, or over 3%, to close at $44.25 per share on August 29, 2019, thereby injuring investors further.
Then, on September 25, 2019, Altria announced that Philip Morris International had called off discussions of a $200 billion merger with Altria due to scrutiny of the vaping industry and the Company’s 35% stake in market leader JUUL.
On this news, the Company’s stock price fell an additional $0.17 per share, or 0.42%, to close at $40.56 per share on September 25, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Altria had conducted insufficient due diligence into JUUL prior to the company’s $12.8 billion investment in JUUL; (2) that Altria consequently failed to inform investors, or account for, material risks associated with JUUL’s products and marketing practices, and the true value of JUUL and its products; (3) that all of the foregoing, as well as mounting public scrutiny, negative publicity, and governmental pressure on e-vapor products and JUUL made it reasonably likely that Altria’s investment in JUUL would have a material negative impact on the company's reputation and operations; and (4) that as a result, the company’s public statements were materially false and misleading at all relevant times.
If you purchased Altria securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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