According to Bloomberg News, on December 26, a U.S. appeals court dismissed a securities fraud class action lawsuit filed by shareholders against Philip Morris International.
Investors accuse tobacco manufacturers of misleading them about the IQOS clinical study methods and results they submitted to the U.S. Food and Drug Administration. Philip Morris seeks approval so its former parent Altria Group can sell the device in the U.S.
Investors also took aim at the company's statements about expected sales of IQOS in Japan, which at the time was the only country where Philip Morris sold the series nationwide.
The U.S. Court of Appeals for the Second Circuit ruled that statements by Philip Morris International and its executives that IQOS research was "rigorous," "the best science" and "very advanced" were unactionable exaggerations. The court rejected the investors' argument that the statements could be proven true or false.
Meanwhile, the court ruled that upbeat comments about Japan's sales performance were permissible.
