ZYN Nicotine Bags Face Monopoly Allegations: Swedish Matches Face Class Action Lawsuit

ZYN nicotine bags face monopoly allegations: Swedish matches face class action lawsuit

PMI subsidiary Swedish Match is facing a class action lawsuit involving over $5 million in compensation for being accused of illegally monopolizing nicotine bag product ZYN in the US market. It is reported that Swedish matches currently hold an estimated 80% market share in the nicotine bag market.

 

According to Reuters on November 20th, Swedish Match North America LLC, a subsidiary of PMI, is facing legal action for being accused of monopolizing the nicotine bag market.

 

This proposed class action lawsuit was filed on Monday (19th) in federal court in Richmond, Virginia, alleging that Swedish matches violated federal and state antitrust laws in the "modern nicotine bag" market. The plaintiff is a Florida resident who accuses Swedish Match of illegally obtaining monopoly rights through a series of commercial activities, including driving competitor Dryft out of the market.

 

According to the lawsuit, Swedish Match currently holds an estimated 80% share of the nicotine bag market, and the company sells these products in different flavors and strengths at a price of approximately $6 per can.

 

PMI stated in a statement that the company has not been listed as a defendant, and they believe that the plaintiff's allegations are unfounded and intend to defend them firmly.

 

The plaintiff's lawyer did not immediately respond to a request for comment.

 

PMI acquired Swedish matches for $16 billion in 2022 and has expressed interest in transitioning from the cigarette business.

 

The focus of this class action lawsuit is partly on the purchase agreement between PMI and Swedish matches, which the plaintiff claims is anti competitive. The plaintiff requests the court to compel PMI to strip Swedish matches.

 

The lawsuit also accuses Swedish Match of filing an unfounded lawsuit against its competitor Dryft.

 

In 2022, Dryft sued Swedish Match in federal court in California, accusing it of violating antitrust laws. Both parties seem to have resolved this lawsuit, and Dryft withdrew the lawsuit last year.

 

The lawyer for the case did not immediately respond to a request for comment.

 

The lawsuit seeks to fight for class action status for ZYN consumers and demands compensation of over $5 million.