Finance
British American tobacco faces UK shareholders' lawsuit over north Korea sanctions breaches
Published by Global Banking & Finance Review®
Posted on March 4, 2026
2 min readLast updated: March 4, 2026
Quick Summary
British American Tobacco is being sued by over 100 UK shareholders in London’s High Court, alleging it failed to disclose U.S. sanctions breaches tied to North Korea operations from 2007–2023, following its 2023 $635m settlement for subsidiary’s violations.
British American Tobacco Sued by Shareholders Over North Korea Sanctions Breach
Shareholder Lawsuit and Sanctions Violation Details
Background of the Lawsuit
LONDON, March 4 (Reuters) - British American Tobacco is facing a London lawsuit from shareholders over allegations the cigarette maker failed to properly tell markets about breaches of U.S. sanctions in relation to its business in North Korea.
Sanctions Breach and Settlement
Admission of Wrongdoing
BAT in 2023 agreed to pay more than $635 million to U.S. authorities after a subsidiary admitted conspiring to violate U.S. sanctions by selling tobacco products to North Korea and commit bank fraud from 2007 to 2017.
Details of the Legal Action
Claimants and Allegations
More than 100 current and former BAT shareholders filed a lawsuit against the company at London's High Court on February 27, the claimants' lawyers said in a statement.
Law Firm Statement
"The claim alleges that BAT failed to properly publish information to the stock market about its business operations in North Korea since 2007 to 2023," law firm Fox Williams said.
Company Response and Additional Lawsuits
BAT, which sells cigarettes, tobacco and other nicotine products, did not immediately respond to a request for comment.
The value of the lawsuit is not known and no further details were immediately available.
A separate lawsuit was filed against the company at the High Court on the same day, according to court records. Stewarts, the law firm representing that group of claimants, declined to comment.
Reporting Credits
(Reporting by Sam Tobin. Additional reporting by Emma Rumney. Editing by Mark Potter)
Key Takeaways
- •Over 100 current and former shareholders have filed a group lawsuit against BAT in London, claiming nondisclosure of sanctions breaches related to North Korea operations stretching back to 2007.
- •In 2023, BAT agreed to pay more than $635 million to U.S. authorities after a subsidiary admitted conspiring to violate U.S. sanctions by selling tobacco to North Korea and committing bank fraud between 2007 and 2017.
- •The case could spotlight corporate transparency obligations and the financial risks of non-disclosure in geopolitically sensitive operations. BAT has not yet commented, and the lawsuit’s value remains undisclosed.
Frequently Asked Questions about British American Tobacco faces UK shareholders' lawsuit over North Korea sanctions breaches
1Why are shareholders suing British American Tobacco?
Shareholders allege British American Tobacco failed to properly inform markets about breaches of U.S. sanctions related to its North Korea business.
2What did British American Tobacco admit to in relation to North Korea?
A BAT subsidiary admitted to conspiring to violate U.S. sanctions by selling tobacco products to North Korea and committing bank fraud from 2007 to 2017.
3How much did BAT agree to pay U.S. authorities for sanctions violations?
BAT agreed to pay over $635 million to U.S. authorities for violating sanctions tied to its North Korean operations.
4When and where was the shareholder lawsuit filed?
Over 100 shareholders filed the lawsuit at London's High Court on February 27.
5Are there multiple lawsuits against BAT related to these issues?
Yes, a separate lawsuit was filed against the company at the High Court on the same day by a different group of claimants.