Lawsuit: Tobacco Company Hiding Details of Proposed Merger

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Reynolds American Inc. (RAI) and its board of directors are facing claims that they issued a misleading proxy statement in connection with a merger between RAI and British American Tobacco P.L.C. (BAT). In a proposed class action lawsuit, the plaintiff alleges that the merger proposal “appears inadequate in light of the Company’s recent financial performance and prospects for future growth.” She further argues that the proxy statement is missing information concerning the processes used to assess RAI’s financial projections and the figures used in analyses performed by the company’s financial advisors to determine the fairness of the deal. According to the suit, RAI stockholders are lacking the details they need to decide whether to vote for the merger and are “threatened with irreparable harm.”