BAT faces lawsuit alleging it funded North Korean terror
A lawsuit filed by victims of terrorist attacks accuses British American Tobacco (BAT) of illicitly funding North Korea’s weapons program, which allegedly supplied arms used against Americans. The suit, brought by hundreds of U.S. military service members, civilians, and their families seeking unspecified damages, claims BAT operated in North Korea for years, contributing to the financing of terrorism.
The legal action centers on BAT’s involvement in a joint venture established in 2001 with a North Korean company to manufacture cigarettes. Despite public warnings from the U.S. government about North Korea funding terrorism and the imposition of sanctions, this venture reportedly continued quietly. While BAT publicly announced an end to its North Korean operations in 2007 amid international pressure, U.S. prosecutors stated in 2023 that the company secretly maintained its business through a subsidiary.
According to former Justice Department official Matthew Olsen, BAT’s North Korean venture involved approximately $418 million in banking transactions, which generated revenue used to advance North Korea’s weapons program. In 2023, BAT reached a deferred prosecution agreement and, along with its subsidiary which pleaded guilty, agreed to pay $629 million in fines for conspiring to violate sanctions and commit bank fraud. At the time, then-CEO Jack Bowles stated, “On behalf of BAT, we deeply regret the misconduct arising from historical business activities that led to these settlements, and acknowledge that we fell short of the highest standards rightly expected of us.” He emphasized the company’s commitment to rigorous compliance and ethics standards.
The current civil lawsuit seeks compensation under a federal law allowing victims of terrorist attacks to sue not only those directly responsible but also third parties accused of aiding or conspiring in such acts. Lawyer Ryan Sparacino, representing the plaintiffs, stated, “This case alleges a clear nexus between BAT’s clandestine scheme in North Korea and the weapons used in deadly terrorist attacks.”
Plaintiffs argue that BAT should be held liable for damages because North Korea allegedly used profits from the cigarette venture and smuggling to fund weapons of mass destruction for Iran’s Revolutionary Guard and Hezbollah. These weapons, the complaint asserts, were used in attacks on the al-Asad and Erbil airbases in Iraq on January 8, 2020, and a missile attack in Kurdistan in 2022. The January 2020 attack resulted in over 100 soldiers diagnosed with traumatic brain injuries, while the 2022 attack caused numerous injuries and deaths.
“The devastating harm caused by terrorist violence does not fade with time – families carry it every day,” said Raj Parekh, a partner at Sparacino PLLC and former acting U.S. attorney. “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.”
The lawsuit, filed in federal court in the eastern district of Virginia, claims that “Defendants knew – or recklessly disregarded – that by operating an illicit joint venture with a North Korean state-owned tobacco company, they were financing the missile and rocket attacks carried out by the IRGC and Hizballah against Americans.” It further alleges that for over a decade, BAT persisted in this scheme, funnelling hundreds of millions of dollars to North Korean terrorist fronts and defying repeated warnings.
The plaintiffs include approximately 200 service members who sustained injuries such as traumatic brain injuries and post-traumatic stress disorder. Also named is the widow and estate of an individual killed while assisting refugees during the 2022 Kurdistan attack, as well as other family members who claim harm.
BAT has stated, “We do not comment on potential or pending legal claims.”
The lawsuit against BAT contends the company was aware its financial activities were funding terrorism and continued the venture regardless, citing numerous public statements and reports. The complaint alleges BAT personnel monitored U.S. government and media reports, and its own corporate filings indicated awareness of the financial risks associated with illicit cigarette trade. This case follows recent legal developments, including a Supreme Court ruling that inaction alone is insufficient to hold companies liable for facilitating terrorism, and a federal appellate court reviving a lawsuit against pharmaceutical companies accused of funding terrorism in Iraq.
– Elena RogerRT (Roder.E@theseouljournal.com)
