British American Tobacco sued in the United States for alleged financing of terrorism via North Korea

British American Tobacco (BAT), one of the world's leading tobacco manufacturers, is the subject of a civil lawsuit in federal court in Virginia, USA, filed by nearly 200 American military personnel, civilians, and their family members.[1]. The plaintiffs accuse the company and one of its subsidiaries of having contributed, through their activities in North Korea, to the financing of weapons programs used in attacks described as terrorist attacks against American citizens in the Middle East.

A complaint that follows on from past investigations into BAT's illegal operations in North Korea

This complaint is a direct continuation of past investigations into the tobacco giant's illegal operations in North Korea. In 2023, the US Department of Justice had already indicated that these operations had resulted in approximately $418 million (€354 million) in banking transactions., funds that allegedly contributed to financing North Korea's massive weapons program.

In the agreement reached in 2023 with the US authorities, the company acknowledged shortcomings related to its past activities and stated that it had strengthened its compliance and ethics mechanisms.

This acknowledgment of the facts, coupled with the commitment to measures announced by the company, enabled BAT in the same year to conclude a deferred prosecution agreement with the American authorities, the latter agreeing to suspend their action against the manufacturer in exchange also for the payment of $629 million (€533 million) in fines for violation of sanctions and bank fraud.

A civil action based on the indirect liability of the manufacturer in terrorism in the Middle East

The current proceedings are based on federal legislation that allows victims of attacks to sue not only the organization designated as responsible for the damages, but also any third party that may have aided and abetted, or conspired to assist, the commission of an act of terrorism.

According to the complaint, BAT entered into a joint venture with a North Korean state-owned company in 2001 to produce cigarettes in the country. Although the company claimed in 2007 to have ceased its operations in North Korea under international pressure, U.S. authorities believe that, in reality, BAT continued its activities indirectly through a subsidiary.

The plaintiffs believe that profits from the manufacture and smuggling of cigarettes were used by North Korea to support armed groups, including the Iranian Revolutionary Guard and Hezbollah.

According to the lawsuit, these weapons were used in the January 8, 2020 attacks on the al-Asad and Erbil air bases in Iraq, as well as in a 2022 missile strike in Kurdistan. These attacks killed more than a dozen people and injured many others. Among the plaintiffs are approximately 200 affected U.S. service members diagnosed with injuries such as traumatic brain injuries and post-traumatic stress disorder. In addition to these direct victims, the lawsuit also includes civilians and their family members.

" This case highlights a clear link between BAT's clandestine program in North Korea and the weapons used in deadly terrorist attacks. »" said Ryan Sparacino of the firm Sparacino PLLC, which represents the plaintiffs.

Raj Parekh, former acting federal prosecutor for the Eastern District of Virginia and now a partner at the firm, said the case seeks redress for acts that allegedly enabled attacks against Americans:« The devastation caused by terrorist violence does not fade with time; families suffer the consequences every day. " he said.

BAT acted knowingly despite international sanctions and pressure; this case is still ongoing.

The complaint filed in the federal court for the Eastern District of Virginia alleges that the tobacco company BAT was repeatedly warned of the risks of financing terrorism through the illicit cigarette trade stemming from its North Korean operations. These warnings were reportedly delivered through numerous public statements, as well as public and private reports.

According to the complaint, "« For at least 10 years, the defendants persisted in this scheme, funneling hundreds of millions of dollars to North Korean terrorist organizations that financed missiles used to attack Americans, including the plaintiffs, and ignoring repeated warnings that their conduct would enable these attacks.. ».

" Its internal staff closely monitored reports from the US government and media. »" the complaint states, asserting that the company BAT was fully aware of the risks posed by the illicit trade in cigarettes and North Korea's alleged support for terrorism.

The outcome of the proceedings will depend in particular on the plaintiffs' ability to demonstrate that the company knowingly contributed to acts of terrorism, a high legal threshold according to recent case law in US courts. BAT stated that it does not comment on ongoing legal proceedings. This case raises even more questions about the societal harm caused by the tobacco industry., already implicated in the past in other cases of organizing smuggling and financing terrorist activities. Not to mention that its products are responsible for non-communicable diseases that cause nearly 8 million premature and preventable deaths worldwide each year.

©Generation Without Tobacco

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[1]Sam Levine, British American Tobacco accused of helping North Korea fund terrorism in lawsuit, The Guardian, published January 30, 2026, accessed February 3, 2026

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