British American Tobacco sued in the U.S. over alleged role in financing terrorism via North Korea

British American Tobacco (BAT) is facing a major civil lawsuit in the United States, brought by hundreds of U.S. military personnel, civilians and their families, who accuse the tobacco multinational of having indirectly helped finance terrorism through its past business activities in North Korea. The case has been filed in a federal court in Virginia under U.S. anti-terrorism legislation.

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Illustration generated using AI for critical illustrative purposes, referring to judicial allegations reported by the international press.

According to the complaint, BAT established a joint cigarette-manufacturing venture in North Korea in 2001. Although the company publicly claimed to have withdrawn from the country in 2007 following international sanctions and growing political pressure, the plaintiffs allege that BAT continued to operate covertly for years through intermediaries and subsidiaries. These activities are said to have generated hundreds of millions of dollars in revenue for the North Korean regime.

The lawsuit argues that these financial flows contributed to funding North Korea’s weapons programmes and, indirectly, attacks carried out against U.S. targets abroad. The plaintiffs claim that BAT’s conduct therefore amounted to “aiding and abetting” acts of terrorism, making the company liable for damages under U.S. law.

The case builds on earlier findings by U.S. authorities. In 2023, BAT and one of its subsidiaries entered into a deferred prosecution agreement with the U.S. Department of Justice, agreeing to pay around USD 629 million in fines and penalties to settle charges related to sanctions violations and bank fraud linked to its North Korea operations. While BAT has stated that it rejects the allegations in the civil lawsuit, the case raises serious questions about the responsibility of multinational corporations operating in high-risk jurisdictions and the broader societal harms associated with the tobacco industry.

Original article:

The Guardian, “British American Tobacco accused of helping North Korea fund terrorism in lawsuit” (30 January 2026)

https://www.theguardian.com/business/2026/jan/30/british-american-tobacco-lawsuit-north-korea-terrorism

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