By Timothy S. Donahue
Key Takeaways:
- A federal judge dismissed a proposed class action accusing Philip Morris International and Swedish Match of overcharging consumers for Zyn nicotine pouches.
- The court found plaintiffs failed to show evidence of anticompetitive harm from PMI’s $16 billion acquisition of Swedish Match.
- Zyn remains the only FDA-authorized nicotine pouch and continues to dominate the U.S. market.
Philip Morris International and its subsidiary Swedish Match persuaded a U.S. judge to dismiss a proposed class action accusing them of inflating prices for Zyn, the top tobacco-free nicotine pouch brand.
U.S. District Judge David Novak ruled Thursday that consumers who filed the lawsuit did not convincingly show that Philip Morris’ $16 billion purchase of Swedish Match in 2022 harmed competition in the “modern oral nicotine” pouch market.
The lawsuit, filed last year, claimed that the merger allowed PMI to suppress competition and set inflated prices in violation of antitrust laws. The plaintiffs sought over $5 million in damages and a ruling that the acquisition was illegal.
Novak disagreed, writing that the complaint “offered no concrete factual allegations regarding changes in pricing or a decrease in innovation.” He added that Swedish Match’s share of the nicotine pouch market remained unchanged after the acquisition. The dismissal was issued with prejudice, preventing the plaintiffs from refiling.
Philip Morris and Swedish Match welcomed the decision, saying in a joint statement they were “pleased this matter has been resolved.” The companies had denied wrongdoing, arguing the suit relied on “conclusory allegations and antitrust buzzwords” rather than facts.
Attorneys for the plaintiffs did not immediately respond to requests for comment.
The case, Allen Neumark v. Swedish Match North America et al, was heard in the U.S. District Court for the Eastern District of Virginia, No. 3:24-cv-00821-DJN.
The ruling comes as U.S. regulators intensify scrutiny of nicotine pouch manufacturers. Zyn, sold in small cans with a variety of flavors and strengths, is the only pouch brand authorized by the U.S. Food and Drug Administration and is viewed as a flagship product for PMI.
