PM - Swedish Match faces $1.2B antitrust suit

Swedish Match AB ( OTCPK:SWMAY ) is facing a suit over alleged monopolistic practices in nicotine pouches, wherein the plaintiff is seeking $1.2B in damages.

The lawsuit, brought by former competitor Dryft Sciences, accuses the Swedish snus giant of filing “sham legal actions” to hinder the business of its competitors. Dryft alleged that the pursued “legal actions against Dryft to impede Dryft’s ability to compete, raise Dryft’s costs, limit investment by third parties, distract its business focus, interfere with its business relationships and opportunities, and effectively drive it from the market by forcing it to sell its business at a discount.” The suit alleges these legal actions specifically related to Swedish Match’s ( OTCPK:SWMAY ) Zyn nicotine pouch product.

The lawsuit documents, filed in the US District Court for the Central District of California, add a host of other allegations that amount to what the suit calls “a campaign of harassment and intimidation” against Dryft. The lawsuit seeks damages of $1.2B as well as “additional relief that the Court deems just and appropriate.”

The Stockholm-based smokeless tobacco company recently accepted a $16B bid by Philip Morris ( PM ) to acquire the company. However, this action is reportedly being opposed by activist investor Elliott Management , raising the risk of the deal failing to close .

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