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August 30, 2015 9:23 PM ET


Company Overview of R.J. Reynolds Tobacco Company

Company Overview

R.J. Reynolds Tobacco Company manufactures and markets cigarettes for adult tobacco consumers in the United States. It offers its products through a network of retailers and wholesalers. R.J. Reynolds Tobacco Company was formerly known as Brown & Williamson U.S.A., Inc. The company was founded in 1875 and is based in Winston-Salem, North Carolina. R.J. Reynolds Tobacco Company operates as a subsidiary of R.J. Reynolds Tobacco Holdings, Inc.

401 North Main Street

Winston-Salem, NC 27101

United States

Founded in 1875





Key Executives for R.J. Reynolds Tobacco Company

President and Chief Commercial Officer
Age: 44
Chief Financial Officer
Chief Scientific Officer and Executive Vice President of Operations
Age: 57
Executive Vice President and General Counsel
Age: 57
Senior Vice President of Research & Development
Age: 54
Compensation as of Fiscal Year 2015.

R.J. Reynolds Tobacco Company Key Developments

RJR Tobacco Announces Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2015

RJR Tobacco announced unaudited earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported operating income of $727 million. Second-quarter adjusted operating income increased 19.2% from the prior-year quarter, to $832 million from $698 million a year ago, benefitting from higher cigarette pricing and the completion of the federal tobacco-quota buyout. Adjusted results exclude implementation costs and charges for Engle progen lawsuits. Net sales were $1,876 million compared to $1,736 million a year ago. Operating income was $727 million compared to $726 million a year ago. First-half adjusted operating income was up 17.9% from the prior-year period. Operating income was $1.3 billion, up 8.9%. Net sales were $3,484 million compared to $3,299 million a year ago. Operating income was $1,315 million compared to $1,208 million a year ago. Adjusted operating income was $1,477 million compared to $1,253 million a year ago.

Gary Paige of Gordon & Doner and Alex Alvarez of Alvarez Law Firm Obtains $46.5 Million in Compensatory and Punitive Damages against R.J. Reynolds in Big Tobacco Lawsuit

Gary M. Paige of Gordon & Doner, P.A., along with Alex Alvarez of the Alvarez Law Firm obtained a verdict against R.J. Reynolds Tobacco Company. Considered one of the most successful trial teams, Paige and Alvarez have obtained several multi-million dollar verdicts against Big Tobacco, and this marks their ninth victory trying cases together against a tobacco company. This time the Broward County jury returned a verdict for $46.5 million on April 21, 2015. The plaintiff, Tom Ryan began smoking in 1955, at age thirteen, long before there were any warnings on cigarette packages. Unfortunately, he became heavily addicted to nicotine, smoking up to four packs a day for more than forty years. Tom didn't choose to be addicted to nicotine. He switched to filtered and low tar cigarettes thinking they were safer, and then for years he tried countless times to quit, including trying the patch and Nicorette gum. In 1997, when new prescription medications were approved by the FDA, he immediately received a prescription for Zyban, and along with a lot of prayer, was finally able to succeed. Unfortunately, it was too late. He had developed severe COPD, and can barely walk to his mailbox. He now relies on nearly full time supplemental oxygen to help him breathe.

Philip Morris, RJ Reynolds and Lorillard Agree to Pay USD 100 Million to Settle More Than 400 Lawsuits

Philip Morris, RJ Reynolds and Lorillard have agreed to pay USD 100 million to settle more than 400 lawsuits claiming that smoking damaged people's health. A judge awarded a combined USD 100 million (AUD 126.72 million) to the plaintiffs in the lawsuits filed in Florida by smokers or their families, seeking damages for injuries caused by smoking. As part of the settlement, Philip Morris USA, RJ Reynolds Tobacco Company and Lorillard Tobacco Company will collectively pay USD 100 million to the plaintiffs. Under the terms of the agreement, Philip Morris USA and RJ Reynolds will each pay USD 42.5 million to resolve the federal cases. Lorillard will pay USD 15 million. The settlement only involves cases that are pending in federal court, the law firm noted, not cases filed in state court. The tentative agreement is subject to the approval of all the plaintiffs. The settled cases are part of the so-called Engle cases, a Florida class-action lawsuit filed against the cigarette companies in 1994. They were also part of a 2006 Florida Supreme Court decision to decertify the class action, saying the USD 145 billion in punitive damages to the entire group was 'excessive'. However, the top court opened the door to individual lawsuits, and allowed the findings to stand in the case, including that smoking cigarettes harmed health and the tobacco companies had knowingly concealed the health effects of cigarettes or their addictive nature.

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