British American Tobacco's alleged complicity in North Korea's financing of terrorism has landed the tobacco giant in a lawsuit that could have far-reaching implications for the company.
A class action lawsuit filed on Thursday alleges that British American Tobacco (BAT) and one of its subsidiaries knowingly profited from illicit cigarette sales to North Korea, which was used to fund the development of weapons of mass destruction. The lawsuit claims that BAT's clandestine scheme in North Korea led to deadly terrorist attacks on US military personnel and civilians.
According to the lawsuit, BAT formed a joint venture with a North Korean company in 2001 to manufacture cigarettes, which continued secretly despite public warnings from the US government about North Korea's involvement in terrorism. The venture generated millions of dollars in revenue that were allegedly used to advance North Korea's weapons program.
In 2023, BAT entered into a deferred prosecution agreement and agreed to pay $629 million in fines for conspiring to violate sanctions and bank fraud. However, the lawsuit claims that this settlement does not hold the company accountable for its alleged role in financing terrorism.
The plaintiffs include hundreds of US military service members, civilians, and their families who were affected by the terrorist attacks. The lawsuit argues that BAT should be liable for damages because it was aware of the risks associated with the illicit cigarette trade and continued to operate the venture anyway.
Experts point out that this case has significant implications for corporate accountability in cases of alleged terrorism financing. "The devastating harm caused by terrorist violence does not fade with time," said Raj Parekh, a partner at Sparacino PLLC representing the plaintiffs. "This case is about pursuing justice for American service members, civilians, and their loved ones, and about seeking accountability for conduct that allegedly enabled the terrorist attacks against them."
BAT has declined to comment on the lawsuit, but experts say that this case highlights the need for greater scrutiny of corporate activities in countries with questionable human rights records. As one expert noted, "Its in-house personnel closely monitored US government and media reports, and its own corporate filings confirm it was acutely aware of the terrorist finance risks presented by the illicit cigarette trade."
A class action lawsuit filed on Thursday alleges that British American Tobacco (BAT) and one of its subsidiaries knowingly profited from illicit cigarette sales to North Korea, which was used to fund the development of weapons of mass destruction. The lawsuit claims that BAT's clandestine scheme in North Korea led to deadly terrorist attacks on US military personnel and civilians.
According to the lawsuit, BAT formed a joint venture with a North Korean company in 2001 to manufacture cigarettes, which continued secretly despite public warnings from the US government about North Korea's involvement in terrorism. The venture generated millions of dollars in revenue that were allegedly used to advance North Korea's weapons program.
In 2023, BAT entered into a deferred prosecution agreement and agreed to pay $629 million in fines for conspiring to violate sanctions and bank fraud. However, the lawsuit claims that this settlement does not hold the company accountable for its alleged role in financing terrorism.
The plaintiffs include hundreds of US military service members, civilians, and their families who were affected by the terrorist attacks. The lawsuit argues that BAT should be liable for damages because it was aware of the risks associated with the illicit cigarette trade and continued to operate the venture anyway.
Experts point out that this case has significant implications for corporate accountability in cases of alleged terrorism financing. "The devastating harm caused by terrorist violence does not fade with time," said Raj Parekh, a partner at Sparacino PLLC representing the plaintiffs. "This case is about pursuing justice for American service members, civilians, and their loved ones, and about seeking accountability for conduct that allegedly enabled the terrorist attacks against them."
BAT has declined to comment on the lawsuit, but experts say that this case highlights the need for greater scrutiny of corporate activities in countries with questionable human rights records. As one expert noted, "Its in-house personnel closely monitored US government and media reports, and its own corporate filings confirm it was acutely aware of the terrorist finance risks presented by the illicit cigarette trade."