A class-action suit was filed against Reynolds American (RAI) to stop the acquisition of Lorillard on grounds another tobacco company involved in the multi-billion-dollar deal would unfairly benefit, the Charlotte Business Journal said.

Dr Robert Corwin, trustee for the Beatrice Corwin Living Irrevocable Trust in New York, is named as plaintiff in the lawsuit filed 8 Aug in Guilford Superior Court, North Carolina, the business journal said on its website. British American Tobacco (BAT), which owns 42 per cent of RAI, would realise unwarranted gains if the acquisition goes through, the suit reportedly alleges.
RAI in July tabled a bid valued at USD 27.4 billion (EUR 20.5 billion) to acquire Lorillard and its Newport brand. The four-company transaction would spin off minor Lorillard brands and the physical plant in Greensboro, NC, to Imperial Tobacco for USD 7.1 billion. BAT committed to spending USD 4.7 billion to preserve its RAI stake at 42 per cent in the event of a completed deal.