This archive report was first published on 31 October 2019.
Published on October 31, 2019, Altria Group, one of the world's largest tobacco companies, has taken a significant hit on its investment in Juul Labs.
The company wrote down its investment in Juul by $4.5 billion, a move that reflects the growing concerns and regulations in the e-cigarette industry.
Altria initially invested $12.8 billion in Juul in December 2018, acquiring a 35 percent stake in the start-up.
The decision to write down the investment comes as the e-cigarette industry faces intense scrutiny, with recent bans on vaping across the United States and the likelihood of the Food and Drug Administration removing flavored e-vapor products from the market.
Juul, which has argued that e-cigarettes can help people stop smoking, is now facing multiple state and federal investigations.
The company has also faced criticism for its handling of the vaping crisis, including the sale of tainted nicotine pods.
As the vaping industry continues to grapple with the fallout, Altria's decision to write down its investment in Juul is a significant blow to the company's financials.
